Tasmanian Alcohol Plan - 20 November 2008

[2.33 p.m.]

Ms FORREST (Question) - My question is to the honourable Leader.  An answer to a question on 18 November, on notice since 15 April this year, related to the initiatives to be undertaken to inform pregnant women of the risk of smoking, alcohol and illicit drug use during pregnancy included the development of the Tasmanian alcohol action plan.  When will the Tasmanian alcohol action plan, expected to be completed by the end of 2008, be released?

Mr PARKINSON - I thank the honourable member for her question.  The Tasmanian alcohol action plan is being developed by the Interagency Working Group on Drugs - IAWGD.  The IAWGD includes senior representatives of the departments of Health and Human Services, Police and Emergency Management, Justice, Education, Premier and Cabinet, Treasury and Finance, the Local Government Association of Tasmania, the Alcohol, Tobacco and Other Drugs Council, and the Australian National Council on Drugs.  No wonder it is taking so long.

I am advised that the consultation draft plan will be disseminated for public comment in mid-February 2009 -

Ms Forrest - We are already behind schedule.

Mr PARKINSON - Slightly - with a view to finalisation and endorsement of the plan in May and public release in June 2009.  The original time frame of December 2008 will therefore not be achieved.  There are sound reasons for providing a longer time frame for the completion of the plan, including the importance of ensuring broad consultation with all key stakeholders and the community to ensure Tasmania has a sound strategic framework to guide actions in response to alcohol misuse.

The Council of Australian Governments will be considering recommendations and options in response to the National Binge Drinking Strategy report of the Ministerial Council on Drug Strategy in February 2009.  The Tasmanian alcohol action plan will need to take those national recommendations and options into consideration.

Department of Health and Human Services Annual Report -18 November 2008

Ms FORREST asked a question of the Leader of Government Business in the Legislative Council -

With regard the Department of Health and Human Services Annual Report 2006-07 -

(1)   What initiatives will be undertaken by the Government to address the issue of and inform pregnant women of the risks of smoking and alcohol and illicit drug use in pregnancy?

(2)   Has the introduction of the national inpatient medication chart resulted in any reduction in medication errors?

(3)   (a)     Will a formal screening program for chlamydia be considered; and

(b)    if so, will support from the Australian Government be sought in order to fund such a screening process?

(4)   As the most recent data relating to the proportion of 18 years plus people at risk of long-term alcohol-related harm was collected in 2004, when will more current data be available?

(5)   (a)     What were the issues identified which allowed the Royal Hobart Hospital - RHH - accreditation for one year only; and

(b)    what action is being taken to address the most significant of these issues?

(6)   What impact have the changes at the Mersey hospital had on the Maternity Service Outreach program?

(7)   What percentage of eligible women has received the cervical cancer vaccine, Gardasil?

(8)   (a)     Are the nursing clinics established at the Launceston General Hospital - LGH - still operational?

(b)    If so -

(i)     What specialist nursing services are being provided?

(ii)    Are there any plans to expand these clinics into the Royal Hobart Hospital and the North West Regional Hospital?

(c)     If not, why were the clinics discontinued?

(9)   (a)     Were additional Senior Executive Service - SES - positions created; and

(b)    if so, what are the designations of these additional positions?

(10)  How did an error of $509 253 occur in the transfer of annual closing balances to the following financial year?

(11)  What were the findings of the evaluation of the breastfeeding clinic at the LGH?

Mr PARKINSON (Hobart - Leader of Government Business in the Legislative Council) - Madam President, as the answer is nine pages long, I seek leave to have it incorporated in Hansard.

Leave granted.

The answer read as follows:

(1)   As part of the State Budget 2008-09, the Government announced funding of $2.7 million over four years to focus on helping Tasmanians to quit smoking.

That funding will enable the appointment of a statewide smoking cessation coordinator, and three hospital-based smoking cessation nurses to coordinate smoking cessation programs particularly in our public hospitals.

The funding will also enable additional media campaigns about the dangers of smoking to generate more quit attempts, and will enable Quit Tasmania to employ an additional Quitline counsellor, as well as developing enhanced clinical partnerships with general practitioners and the non-government sector.

Reducing the prevalence of smoking during pregnancy is highlighted as a major priority in the Tasmanian Tobacco Action Plan 2006-2010.  In 2005, the Tobacco Coalition identified the need to reduce the number of women who smoke during pregnancy as a major priority and established a working group to develop initiatives. Some of these have been implemented including:

• The appointment of a smoking and pregnancy counsellor on the Quitline and training on smoking cessation for midwives.  This was achieved through funding provided by the National Expert Advisory Group on Smoking and Pregnancy which enabled the employment of a project officer for three days a week over 12 months.  The position is based at Quit Tasmania.

• The release of data from the perinatal data collection showing the prevalence of smoking during pregnancy.  Data from 2005 indicated the rate to be 27.6 per cent.  2006 data is currently being collated and will be released publicly once it is available.

Initiatives taken by individual hospitals include:

• LGH has a joint education session with the Drug Education Network - DEN - and is conducting workshops at LGH 28 April 2008.  The aim of the workshops is to provide information on foetal alcohol syndrome and spectrum disorder, and to provide maternity care providers with practical skills and tools to address the issue with women in pregnancy.

• LGH is also working with DEN to develop a 'toolkit' for midwives, GPs and obstetricians to assist them in helping women to manage drug and alcohol issues in pregnancy.

The Government is developing the Tasmanian Alcohol Action Plan, which is expected to be completed by the end of 2008. During the development of the plan the reported high rates of alcohol consumption by pregnant women has been noted, and the plan will include strategies to reduce the level of foetal alcohol exposure in Tasmania.

At the national level, the Australian and New Zealand Food Regulation Ministerial Council, and the Ministerial Council on Drug Strategy have been investigating options to include labelling on alcohol products, particularly to warn of the dangers of alcohol during pregnancy.

(2)   Australian Health ministers agreed to implement a standard national inpatient medication chart in all public hospitals.  The chart was implemented across public hospitals, including Tasmania, in 2007.

The Australian Commission on Safety and Quality in Healthcare is charged with maintaining national version control and managing evidence-based changes to the chart as required.  It is advised on these responsibilities by the National Inpatient Medication Chart Oversight Committee on which Tasmania is represented.

In May 2008 the commission completed phase one of its two-phase quality assurance process to measure the medication management improvements since the implementation of the chart. Pre and post implementation data were collected from each of the jurisdictions including Tasmania.

According to the results obtained by the commission the implementation of the National Inpatient Medication Chart has resulted in improved processes associated with prescribing, dispensing and administering medications.  These activities are used as a surrogate for reduced rates of medication error.  The key areas of improvement include:

• improved documentation of medication that previously caused adverse drug reactions in the same patient;

• reduced prescribing of medications that previously caused adverse drug reactions;

• improved documentation of controlled-release formulations, which are implicated in medication error when confused with immediate-release formulations of the same medication type;

• improved completeness and clarity of medication name, route, dose administration time and frequency, areas of the prescription which if unclear or incomplete can lead to medication error; and

• improved documentation of 'as required or non-regular' medications including documentation of medication indication and maximum doses.  This improved documentation is associated with decreased risk of overdose and correct use of non-regular medication, such as pain medication.

The data submitted by Tasmania to the commission for each of these areas supported these outcomes.

(3)   Chlamydia screening programs are a focus of the Federal Government's National Sexually Transmissible Infections Strategy 2005-08.  Two rounds of research funding into chlamydia screening projects have been administered by the Chlamydia Targeted Grants program.   These programs have been run in all States and Territories and final evaluation is not yet available.

The national strategy is to be reviewed this year and the issue of a national screening program will be part of this consideration.  Tasmania will have input into this review process and funding support will be sought from the Australian Government based on the results of the evaluation.

Chlamydia screening in pregnancy is a routine part of the antenatal screening schedule for the outreach clinics.

(4)   The National Drug Strategy Household Survey 2007 which will provide more recent data is expected to be released by the Australian Institute of Health and Welfare shortly.

(5)   (a)     One standard was outstanding from the accreditation review at RHH, which required further evidence to be presented to increase the rating from 'some achievement' to the level of 'moderate achievement' required for full accreditation.

This standard relates to preventing and managing clinical and non-clinical risks.

(b)        Four surveyors from the Australian Council on Healthcare Standards - ACHS - visited RHH from 7 to 9 October 2008 to undertake periodic review, a phase of the accreditation cycle.

RHH was assessed as meeting the required level for all mandatory criteria relating to patient care and patient and staff safety, and the Government is pleased the high standard of the service delivered by the staff at RHH has been confirmed independently.

The surveyors commended RHH on the quality improvement activities and processes recently implemented and confirmed that this direction is in line with contemporary practice.

As the hospital was unable to provide evidence of evaluation of some projects - due to the recent implementation - the surveyors have advised the acting CEO they will be recommending conditional accreditation, which will enable the hospital to confirm, after one year, that the activities demonstrated during the periodic review have been fully implemented and evaluated.

RHH also has some follow-up work to undertake, to provide the surveyors with specific information around governance, management structure and resource allocation processes, and the hospital is confident they will satisfy these requirements.

(6)   The changes at the Mersey hospital over the past 12 months have had minimal impact on the maternity outreach program.

Tasmania is working with the Australian Government on the service configuration of the Mersey Community Hospital.  It is expected that where possible the Mersey obstetricians and paediatricians will continue to participate in a monthly roster for the maternity and paediatric outreach program.

The outreach program will expand to include more midwives clinics and plans for paediatric specialties are under way.

(7)   Preliminary data to date for 2007 indicate an average coverage of 60 per cent statewide for school-based programs based on the department register.  This is a two-year program which is about halfway through.  More updated data are expected to be available by the end of 2008.

No data is available for 18 to 26-year-olds as this is carried out by GPs and coverage will be determined when a national register is up and running.

(8)   (a)     Yes.

(b)    (i)     The clinic is staffed by professional clinical staff and administration staff who are able to provide a range of treatments and support including:

• Wound care.
• Spinal and continence support and advice.
• Respiratory.
• Diabetes.
• Pulmonary hypertension.
• Colorectal surveillance therapy.

The Refugee Mantoux Clinic provides:

• Health assessment.
  • Chronic disease support and monitoring including diabetes and hypertension.

There are also nursing led clinics at LGH Team Midwifery offering women a low-risk midwife led option of care.  The midwifery led service provided maternity care for 21.5 per cent of births in 2007 which is comparable to 22.2 per cent in 2006.

Team Midwifery provided 2 185 antenatal visits in 2007 compared to 2 019 in 2006 - an average of 182 per month.

(ii)    There are formal clinics in the John L Grove Centre, Launceston, the Repatriation Centre, Hobart, and the Devonport Community Health Centre.  Further expansions will occur as resources permit.  Clinics will be an ongoing service provision by Community Nursing.

(c)     Not applicable.

(9)   The positions listed below were created at the time of FIT and were put in place for operational service management in the respective areas.

Manager ICT Infrastructure (position was previously AE12, reclassified) - SES 1

Area Manager Primary Health North - SES 1

Area Manager Primary Health South - SES 1

Area Manager Primary Health North West - SES 1

Manager Planning Policy and Performance Unit Primary Health - SES 1

Manager Program and Service Development Statewide Specialist Services - SES 1

Manager Co-ordination and Innovation Mental Health Services - SES 1

Area Manager South East Children and Family Services - SES 1

Area Manager South West Children and Family Services - SES 1

Area Manager North Children and Family Services - SES 1

Area Manager North West Children and Family Services - SES 1

Manager Program Development and Statewide Services Children and Family Services - SES 1

Director Acute Care Strategies and Reform (this role based in Health Services Executive Support Unit) - SES 1.

All of the above positions were created within the available budget.  The FIT program did result in a reduction in head office positions and around 46 positions moved to service delivery areas.

Within the list of positions above it should be noted that seven are designed to provide stronger regional management, five are focused on service reform and program development and the remaining position reflects increased information technology management capacity.

(10)  In bringing the opening balance to account, an amount of $509 253 was duplicated in the general ledger and newly created private patient sub-ledger, resulting in an overstatement of that amount in the general ledger.

(11)  The LGH lactation service has been well received by women with breastfeeding initiation problems accessing the support of a lactation consultant, and to support breastfeeding following early discharge from hospital following birth.  A patient satisfaction survey conducted in November 2007 supports this statement.

Eighty-five per cent of women leaving care at the LGH breastfeeding clinic are able to fully breastfeed, which is well above the target of 80 per cent set by the Baby Friendly Hospital Initiative.

Hobart International Airport Sale q3 - 13 November 2008

[2.55 p.m.]

Ms FORREST (Question) - Madam President, I think the Treasurer should be able to answer this question in relation to the Hobart airport.  Treasurer, do you have any knowledge of two companies with very similar names to those involved in the purchase of the Hobart Airport Incorporated, which were incorporated in December 2007, being Tasmanian Gateway Pty Ltd and Tasmanian Gateway Holdings Pty Ltd and, if so, what is their connection with the Hobart airport?

Mr AIRD - The honourable member might expect me to know that, but why would I?

Ms Forrest - I'm asking if you know about these companies.

Mr AIRD - No, I do not but I will find out.

It would be better to write to me about these questions so I can get detailed answers.  The deal has been done and it passed every single tick in terms of probity.  I do not know where the honourable member is going to go with this, but if it relates to other corporate dealings I do not know if Parliament is the right place to raise it.  I just make that point, Madam President.

Hobart International Airport Sale q2 - 13 November 2008

[2.43 p.m.]

Ms FORREST (Question) - Madam President, my question is to the Treasurer.  I am happy for him to take this on notice if he needs to.  It relates  to the sale of the Hobart airport.  Treasurer, the contract regarding the Hobart airport sale indicates that the shares in the Hobart International Airport Pty Ltd were purchased by Tasmanian Gateway Holdings Corporation Pty Ltd.  Schedule 7 covering buyer warranties states that the issued capital of the buyer is set out in Schedule 9.  Schedule 9 indicates that 109 million shares were issued, of which only 1 million approximately are held by the RBF.  ASIC records suggest that the issued capital of the buyer is only 100 shares totalling $100 and this is held by the sole shareholder, Tasmanian Gateway Holdings Corporation Pty Ltd.  Is the buyer warranty correct or are the ASIC records correct or is there another answer?

Mr AIRD - Perhaps you ought to ask ASIC.

Ms Forrest - I'm asking you.

Mr AIRD - I do not mind being asked these questions, it is just that they are pretty detailed.  The Tasmanian Gateway Corporation Pty Ltd was a company, as I recall, established by Macquarie Investments, No. 1, I think, and the RBF.  I might be wrong on that, but as I recall events, it is some time ago.  I will investigate the matters the honourable member has raised and seek to get some clarification on those issues.  I do not know where this line of questioning - I am not worried about that - I am satisfied -

Ms Forrest - I am just wanting some answers about the transactions that have occurred.

Mr AIRD - We have a very strong regulatory framework in Australia, the ACCC and ASIC.  We have very strong regulators.  I would not like to think that anything is being done that would contravene any proper regulation.

Hobart International Airport Sale - 13 November 2008

[2.35 p.m.]

Ms FORREST (Question) - Treasurer, as the cost of the shares in the Hobart International Airport Pty Ltd in TasPorts' books was only $7 million, why is the gain on the sale not treated as a taxable capital gain so the part in that returned to the Government is in fact an income tax equivalent payment and not a dividend?

Mr AIRD - Again, I do not have the detail of -

Ms FORREST - I thought you would have it by now.

Mr AIRD - If it is about whether we optimised our return, I think we did.  If there are issues that you think we need to check out then I am happy to see it all in totality.  I am a shareholder in a lot of different organisations and I am involved in a lot of different transactions.  I do not have all the details at my fingertips.

Ms Forrest - I thought you might have had a briefing note about it by now, though.

Mr AIRD - I am happy to receive any further representations from the honourable member about this very important matter.

Child Protection - Early Intervention q2 - 12 November 2008

[2.50 p.m.]

Ms FORREST (Question) - I have a supplementary question, Madam President.  The Minister for Human Services mentioned antenatal intervention, I guess, in a very small part of her response to that question.  While antenatal care falls under the auspices of the Health minister's portfolio I am interested to know whether there is a bigger push in trying to identify these families antenatally and, if that is the case, what is being undertaken in that area?  This is an area that you can actually identify and hopefully prevent some of what we are seeing now.

Ms THORP - The issues that I was relating to are more to do with child protection once children enter the system.  So some of the big reforms are all about the early intervention in the sense of opening up the child and family centres so that their services can be given to families in need earlier to stop them needing to be under care and protection orders.  Right back at the baby stage, currently there are a number of universal checks that are given to children which are going to be changed.

Ms Forrest - I am talking about the in utero baby.

Ms THORP - We have no actual power and control at the moment to deal with the in uterus position.  What tends to happen is when an expecting mother presents and the services that come in contact with that young woman - it is usually as a young woman - become aware that there may be drug and alcohol issues, or nutrition issues, or even a degree of smoking or whatever that may impact on the health of the child, they are basically on a watching brief.  They need to wait for the moment of birth because that is the point at which the child becomes a person under the purposes of the act.

The amendments we are flagging to come into the act next year which covers this area are that the baby for the purposes of the act in terms of intervention can be dealt with in utero.  Currently that is not the case and people are basically in a holding pattern aware that there might be problems out there involving the baby's health through health issues with the mum and they are just standing and waiting for the baby to be born before they intervene.  As you can imagine, that can be quite traumatic for the mother concerned and for anyone in the family involved with the baby because all of a sudden, in a sense, services pounce.

By making a change to the legislation so that these protections can be in place and services are in readiness and dealing with the mum while the baby is still in utero, hopefully there will be better outcomes for the mother and most particularly better outcomes for the baby.  I am hoping that honourable members will support those changes when they come about.

Child Protection - Early Intervention - 12 November 2008

[2.47 p.m.]

Ms FORREST (Question) - My question is to the Minister for Human Services.  Minister, in light of the recent case related to a child protection issue on the north-west coast, can you outline what the Government is doing to provide early intervention in those sorts of cases?

Ms THORP - I thank the honourable member for her question.  I am aware of the incident as it was so well highlighted in the media here only a couple of weeks ago.  I am sure all members were equally distressed, as was the honourable member for Murchison, about the plight on the north-west coast to which the member made comment in the media.  That was in relation to early intervention and dealing with children to make sure that, from birth, there are protections put in place.

The whole-of-government policy framework for the early years has been released, as has Tasmania's Early Childhood and Childcare Action Plan, and the existing early support program is being extended and expanded as a forerunner to the revitalised family services system.  A professional development program has been established with a dedicated team to source and deliver development materials.  The first stage of a new child protection information system to support the business of child protection has been implemented.  A licence has been purchased for the use of the Looking After Children framework and further work on the implementation of this framework will occur over the next financial year.  International consultants KPMG have undertaken a redesign of the child protection and family services system and provided their recommended direction to government

All area liaison positions have been established to consult with other government and non-government services and provide support and advice in cases that potentially require child protection intervention.  Similarly, a liaison position has been established at the Royal Hobart Hospital to provide advice, support and liaison for issues relating to child protection issues including antenatal, neonatal and paediatric services.  An initial health screening program has been established for high-needs children entering care and work on the expansion of screening to all children entering care is progressing with the implementation expected during 2008-09.

A statewide manager of out-of-home care has been appointed.  A consultation process has been undertaken with the department's foster carers as an important first step in developing a better relationship with the people who undertake this vital role.  A quality improvement unit has been established and a new policy and process for responding to complaints in care has been developed and implemented.  Further collaboration has been progressed with our key partners in government, such as Tasmania Police and the Department of Education, including the development of agreed protocols.  Cabinet has agreed to drafting the first phase of legislative amendments which are expected to be considered in 2009.

A lot has been achieved but I acknowledge a lot needs to be done and I would stress that achieving the level of organisation and cultural reform proposed for the child protection system will require sustained effort over several years.  We have begun the process but there is a long road ahead.

Sales of Assets - Government Business Enterprises - 12 November 2008

[2.31 p.m.]

Ms FORREST (Question) - Madam President, my question is to the Treasurer.  I appreciate some of this may need to be taken on notice but I will see how we go.  The outcomes report for 2007-08 states on page 17 that net cash flows from investments in financial assets for policy purposes for 2007-08 includes $303 million in receipts related to the sale of the Hobart International Airport Pty Ltd, the Printing Authority of Tasmania and the Southern Regional Cemetery Trust.  The annual report for 2007-08 for TasPorts states that $309.7 million was returned to the Government following the airport sale.  Will you as Treasurer kindly reconcile the payments made by the three GBEs in their accounts with the net amount received by the Government in the preliminary outcomes report?  Were there any commissions paid in respect to these sales and, if so, how much, and by whom to whom?

Mr AIRD - In answer to the honourable member's question without having the figures in front of me, yes, there are always costs associated with the sale of assets and we engaged a sale adviser.  We had a probity adviser.  We sought specialist advice in terms of the divestment of assets and so there are costs.  I need to see the actual figures.  It may be that TasPorts had a gross figure and that in terms of disposable assets back into the Consolidated Fund it would be on the basis of the disbursements from that gross figure.  I will try to get as much information as I can for the honourable member.

The disparity between the two figures does not seem to me to be a major issue but I will check it out.  We might just be talking about a gross figure.  If it is a net figure I will try to identify those areas associated with the divestment that leads to the net figure.

Ms Forrest - Do you want it on notice?

Mr AIRD - No.  I understand the nature of the question.  I just do not have the information in front of me.

Ms Forrest - And the commissions?

Mr AIRD - Yes, I know.  I heard, yes.  There are a number of aspects to any divestment; there is always a slice of the action.  The $350 million in terms of the sale of the asset would seem to be a major achievement - and it was - but it was within the parameters of what we could expect.  Nonetheless there are costs associated with that and they do not come cheaply.  We had the very best of advice on the sale of the asset, I can assure you.

Tourist Itineraries - Map and Detail - 11 November 2008

[2.55 p.m.]

Ms FORREST (Question) - Madam President, my question is to the Leader.  The map and detail regarding tourist itineraries on pages 136 and 137 of the Tourism Tasmania Discover Tasmania publication has been the same for three years and completely ignores the north-west coast and Circular Head.  Will it be reprinted to reflect the tourism potential of this area in line with the Zone Marketing program and be redistributed as a matter of urgency, particularly as this issue has been raised by the Circular Head Tourism Association with Tourism Tasmania for the last three years to no avail?

book alone.  This includes  the boutique accommodation '@ VDL Stanley', which I note is the only Tasmanian experience that has been mentioned in Travel and Leisure Australia's recent list of the best 100 travel destinations, discoveries and moments in the world, as judged by their team of writers.

Tourism Tasmania will continue to provide dedicated training to travel agents on the mainland through our business development advisers and, throughout the year, we will continue to communicate new itineraries to these travel agents, of which the north-west coast and Circular Head are an intrinsic part.

In addition to this, Tourism Tasmania will develop a tailored strategy to further promote the north-west coast as part of a Tasmanian holiday experience.  This will be done by creating new Tasmanian itineraries which will include accommodation, activities and experiences specific to this region of the State.  These itineraries will then also be actively promoted to trade via Tourism Tasmania's business development advisers and will feature on Tasmania's Temptations web site.

I am advised that there will not, however, be a reprint of the current version of the Discover Tasmania book released on 1 September 2008.  The Discover Tasmania book represents just one piece of a suite of collateral that has been developed this year to promote and reinforce our new Zone Marketing strategy.  The updates and training that are provided by our staff on the mainland are the best means of communicating changes to our travel agency network partners.  The north-west coast and Circular Head has and will continue to feature prominently in imagery, messaging and product across all of the agency's activities.  By way of supplementary advice, I indicate that basically the primary distribution of the guides is to travel agents, hence the other comments.  The key message is that this guide is only one part of a suite of promotional material and activities that highlight the various zones and regions.

Ms Forrest - For three years it has been identified as missing this area and it has not been corrected, even though for three years they have been told.

Mr PARKINSON - Hence the reference to other activities to profile the north-west coast to agents, plus there is broad Tasmanian destination marketing which, from time to time, highlights the region as being part of the broader Tasmanian holiday experience with the extra Zone Marketing activities for the north-west which are aimed directly at consumers and for which Tourism Tasmania has allocated up to $100 000 per zone, subject to matching industry contributions every year for the next three years.

Hobart International Airport Sale q2 - 11 November 2008

[2.40 p.m.]

Ms FORREST (Question) - I have a further supplementary question in relation to that above question, Treasurer.

Mr Aird - Which above question, the one that is on notice or the one I have answered?

Ms FORREST - The one I have just asked you that will now be on notice.  One of the parties to the sale of the Hobart Airport was the RBF which has as a board member the Commissioner of the State Revenue Office.  This being the case, why does the stamp duty differ from that estimate in the contract?

Mr AIRD - Madam President, I thank the honourable member for her question.  I think the honourable member might be mistaken.  I think the head of the State Revenue Office is not a board member of the RBF.  I will check that, but believe I would have made a note of that.  I have been considering the governance of the RBF and the Premier, when he made a statement not so long ago about the current fiscal economic position, stated that the RBF Board was going to be brought under APRA, the Australian Prudential Regulatory Authority, because I think that is the appropriate regulatory mechanism for the RBF.  In assessing the governance of RBF, I cannot recall the head of the State Revenue Office being on the board.

Answers to Questions - 11 November 2008

[2.40 p.m.]

Ms FORREST (Question) - I have a supplementary question, Madam President.  I asked a question last week in relation to a similar matter regarding preliminary outcomes and I have put it on the Notice Paper.  I am hoping that we get answers to these in a timely manner seeing that we only have two more weeks of sitting.

Mr Aird - Yes, I will get that answer to you before we rise.

Hobart International Airport Sale - 11 November 2008

[2.39 p.m.]

Ms FORREST (Question) - Madam President, my question is to the Treasurer.  Treasurer, the contract for the sale of the shares in the Hobart International Airport Pty Ltd estimated the Tasmanian stamp duty to be $600 000 which was to form part of the purchase price.  Assuming that any increase in stamp duty would be further deducted from the final purchase price, what were the precise dutiable transactions that made up the sale price of $352 million?  What were the stamp duty amounts?  Who paid these, bearing in mind that TasPorts' annual account for 2007-08 indicates that $43.4 million in debt repayment and stamp duty form part of the purchase price?  Will you provide a break-up of these amounts?

Mr AIRD - Madam President, the answer to the last part of the question is, yes, and regarding the answer to the first part, I will have to take that on notice and get the detail back to the honourable member.

Mr Wilkinson - The answer to the first part is, 'I am not going to tell you'.

Mr AIRD - No, I do not have that level of detail but I will get it to the honourable member.

Hobart International Airport - Sale - 30 October 2008

[2.40 p.m.]

Ms FORREST (Question) - Treasurer, referring to the Preliminary Outcomes Report 2007-08 which lists on the balance sheet of the general government a liability being an increase of $12 million in revenue received in advance which primarily relates to the financial transaction tax on the sale of the Hobart International Airport Pty Ltd, which is yet to be finalised, what does this amount relate to?  Is it stamp duty by another name designed to confuse?  Further, why is it yet to be finalised when the airport sale was supposedly completed on 1 February 2008?

Mr AIRD - That question contains some detail and perhaps I will take it on notice in terms of being able to answer specifics.  I cannot recall all the transactions relating to the sale, but generally if you are referring to some of the costs of the transactions, we collect some benefit on the way through the sale but I cannot recall the specifics of that and I would have to take it on notice.

Bass Strait Fibre-Optic Cable - Telstra Pricing Structure - 29 October 2008

[2.36 p.m.]

Ms FORREST (Question) - My question is to the Treasurer with regard to the fibre-optic cable.  In an answer to a question on June 2008 regarding the rates charged by Telstra for the use of the cable, you stated that the ISPs say the rates are between five and 10 times more expensive from Hobart to Melbourne or from Melbourne to Hobart than they are from Melbourne to Adelaide and six times more expensive than from Melbourne to New York and that this is the type of pricing structure we are faced with.  Is it reasonable to suggest that with the amount of traffic and data transfer across these routes - with all other data transfer to New York from Australia passing through Melbourne, and Adelaide is the pathway to Perth and the rest of Western Australia - due to the sheer volume of the data transfer these rates would be less?  In light of the above, do you still contend that the rates charged across Bass Strait are exorbitant?

Mr AIRD - I thank the honourable member for her question.  At the conclusion of question time I will correct an answer formally.  I gave some information that was not entirely accurate, but it is not a significant error.  The volume argument is an interesting one put forward by those who are presently carrying data and transfer.  They say they do not have the volumes and therefore have to have unit prices of a higher nature than other higher-volume transfers.  Similarly, if you had a lower price structure you would get more data and more transfer.  It is price-sensitive.  I remind honourable members that this not just my assessment.  What I am doing - and you quote me correctly - is quoting those involved in the sector.  Last night I met with those involved in investing in Tasmania in the IT industry.  They are very keen to see competition brought to optic fibre and broadband in Tasmania.  They are waiting for competitive pressure.

What we have in Tasmania is a classic example of market failure in terms of providing a competitive environment so that prices can react to that competitive pressure.  We also have regulatory failure.  If we tried to challenge the pricing structure of Telstra or anyone else, say, under the Trade Practices Act and the ACCC process, we would be in court for years, and we are not prepared to do that.  We have chosen a market response to get the prices right in Tasmania.  The examples that I give here are based on the evidence that we know exists in Tasmania and the potential in terms of those who wish to invest in this sector.  There is possibly between $100 million and $200 million of pent-up investment in Tasmania into this sector.  It is the most important next significant step in our economy.  We have been concentrating on building our infrastructure.  That is why I was concentrating on water and sewerage - an important part of our infrastructure and we have to get it right.  Optic fibre is part of that.

Ms Forrest - It is taking longer.

Mr AIRD - We are not far away; we are closer today than we were yesterday.  I would like to hear that at half past six tomorrow morning on the ABC news.

Members laughing.

Mr AIRD - It is true, we are making progress.

Ms Forrest - But we want to know when.

Mrs Rattray-Wagner - How much closer?

Mr AIRD - Do not tempt me.  But I am more excited today than I was yesterday, too.

It has been a long, long way to try to get to an agreed position.

Ms Forrest - And it's costing us money every day.

Mr AIRD - Once we get a conclusion to these discussions and we get competitive pressure, it is going to give a major lift to the Tasmanian economy and the Tasmanian providers will be rewarded by a competitive environment, which will allow the prices to drop dramatically.

Mr Wilkinson - I hope logging on is going to be much quicker than the process is taking.

Ms Forrest - It better be.

Mr AIRD - I do not know how savvy you are with -

Mr Wilkinson - Very, very savvy.  The honourable member for Huon comes to me for advice.

Mr AIRD - The Y generation are leaving me for dead.  I thought I was pretty good.

The fact is that we have maintained the position of creating competitive pressure.  I remind honourable members that we have invested over $30 million in optic fibre in this State and it places the State in good stead to provide this competitive environment.

There are other steps to be had as well and that is to try to build a fourth link across Bass Strait and we are working with the Commonwealth Government to try to achieve that.  There are things to be achieved in the national broadband network.  We are the only State to have lodged a $5 million guarantee so we can put in a bid for the national broadband network, that is how seriously we take this issue.

I acknowledge that it has taken some time but I can also guarantee that given the nature of the discussions we have had to go through, nothing could have been achieved in a quicker time frame and any other course of action, other than entering into discussions with CitySpring, would not have achieved the same outcome that I expect to achieve.

Bass Strait Fibre-Optic Cable - Rights of Access q2 - 28 October 2008

[2.56 p.m.]

Ms FORREST (Question) - I have a supplementary question, Madam President.  That has not really answered the question.  I would like to know who was responsible for the negotiations in both the original deal and after it changed hands.

Mr AIRD - Madam President, I do not know the names of the individuals.  In any event, there are a lot of public servants who act as agents for the Government in determining those -

Ms Forrest - Was it Treasury?

Mr AIRD - In the end, whoever signs the agreements has to be responsible; an agreement is an agreement.  It is signed by two parties.  If I recall, it was Dr Crean who signed the original agreement.  That is where the buck stops.  I am happy to accept the responsibility for any future agreement.

Members laughing.

Mr Harriss - Keep your hands on the wheel, man.

Mr AIRD - I do not know the point of that remark really but nonetheless I will reflect upon it.  I think in the next few weeks there will be an arrangement with CitySpring which will allow for competitive pressure that we require in terms of delivering with optic fibre.

Bass Strait Fibre-Optic Cable - Rights of Access - 28 October 2008

[2.53 p.m.]

Ms FORREST (Question) - My question is to the Treasurer.  Treasurer, as we have discussed in previous question times, the Tasmanian Government has rented 8 per cent of the capacity of fibre-optic cable across Bass Strait, approximately $2 million per annum.  With regard to this fibre-optic cable, who was responsible for negotiations in the original deal with the original owners and what rights of access were established under that agreement?  Further, when ownership changed to CitySpring, who was responsible for negotiations at that point regarding the rights of access to the cable?  Was there any change to the rights of access as a result of the change of ownership and have Tasmanian taxpayers been dudded?

Mr AIRD - I thank the honourable member for her question.  The answer to the last part of the question is no.  The fact is that there was a telecommunications agreement signed by the Government to enhance the chances of developing optic fibre in association with the development of Basslink and it proved to be a very prudent way of delivering optic fibre across Bass Strait.  Notwithstanding that, the telecommunications agreement has allowed us to further develop the optic fibre in Tasmania.  The Government has spent more than $30 million developing optic fibre in Tasmania and I believe that in a very short while I will be making an announcement -

Ms Forrest - Another very short while.

Mr AIRD - Yes, not long now, I hope.

Ms Forrest - You have not answered any of the question I have asked you.

Mr AIRD - I have.

Ms Forrest - You're getting there.  Who was responsible for negotiations?

Mr Harriss - You were talking about it a couple of months ago and before that.  You were going to box them up.  You've done nothing.

Ms Forrest - No.  We're still waiting.

Madam PRESIDENT - It is just a pity that expressions do not go into Hansard.

Mr AIRD - That is right.  As I said last time, I might be smiling on the outside but I am not on the inside.  Yes, the discussions have gone on for some period of time but I am more optimistic today than I was last week about concluding an arrangement with Basslink.  The terms of the telecommunications agreement did not change with the change of ownership from Basslink to CitySpring.  In terms of the responsibility, obviously Basslink were involved in the discussions in the agreement, as was the Government.

Fine Defaulters - naming and Shaming - 28 October 2008

[2.46 p.m.]

Ms FORREST (Question) - My question is to the Minister for Human Services.  Minister, as your portfolio recognises and provides care and assistance to people with disabilities and those disadvantaged members of our communities, people who often experience significant mental and/or physical health disabilities and often with limited financial capacity, do you support the stance of the Attorney-General that all fine defaulters under the Monetary Penalties Enforcement Act who fail to pay their fines by 27 October this year will be publicly named and shamed, including those mentioned and those legitimately fighting their conviction?

Ms THORP - I thank the honourable member for her question.  I think the Attorney-General has made it very clear that where there are circumstances in which people find it difficult to pay, there are alternative schemes, there are alternative methods they can use so that they will not be in the name-shame arrangement.

Transfer of Land Owned by TAFE - 28 October 2008

Ms FORREST asked a question of the Leader of Government Business in the Legislative Council -

With regard to the potential sale or transfer of land owned by TAFE, known as Freer Farm in Burnie, to the Burnie City Council -

(1)   Has consideration been given to offering the land for sale through an open tender process or placing the land on the open market for sale, to ensure the best price is obtained for this land?

(2)   If not, why not?

Mr PARKINSON replied -

(1)   Yes, consideration has been given to offering the farms for sale through an open tender or open market process.  Other issues have also been considered including transitional arrangements to ensure the impact on students is kept to a minimum.  All discussions regarding the sale of the farms have been based on the current market value of the property.  A decision on the method of disposal has not as yet been made and will only be made once our information-gathering processes have finalised.

(2)   See answer to (1).

School Bus Warning Light - 2 October 2008

[2.53 p.m.]

Ms FORREST (Question) - Leader, in view of the move to use LED traffic lights in Tasmania and their superior brightness in various light conditions, why are school buses required to use single globe hazard light systems, that are only available from Hazard Systems in Launceston, rather than the brighter and easy to install option of LED flashing warning lights that are available at similar cost from a variety of lighting businesses and can be shown to provide greater brightness than the currently required system?

Mr PARKINSON - I thank the honourable member for her question.  Any type of light, regardless of method of construction, make or country of manufacture, may be used as a warning light on a school bus provided it meets the operation and performance requirements of regulation 106 of the Vehicle and Traffic (Vehicle Standards) Regulations 2001.  This does not preclude the use of LEDs or any other type of light which meets these specifications.  Any business that would like to provide warning lights for use on school buses will need to be able to prove that the operation and performance of the lights meet the requirements of the legislation.

Ms Forrest - The contractor will be very pleased with that answer.

Planning System - Lack of Resources - 2 October 2008

[2.39 p.m.]

Ms FORREST (Question) - Madam President, my question is to the Minister for Planning.  Minister, Emma Riley, the State President of the Planning Institute of Australia, Tasmania Division, who commented on the need for review and updating of the planning system in Tasmania, noted that Tasmania allocates approximately $3.50 per capita towards the development of planning policy and strategy.  In comparison, New South Wales dedicates approximately $14 per capita, Victoria, $27.50, and the Northern Territory a whopping $147 per capita.  Furthermore, in terms of personnel, both New South Wales and Victoria have approximately one public servant per 20 000 people to assist in developing their planning policy, while in Tasmania it is more like one per 80 000.  Do you, as Minister for Planning, accept the view that the significant lack of resources and commitment at State government level is a fundamental problem with the planning system at the present time rather than structural flaws?

Ms RITCHIE - I thank the honourable member for her question.  As a new minister coming in, one of the first things I am endeavouring to do at the present time is get my head around the resources of the department and I have specifically requested briefings in relation to the very matter that the honourable member has raised, so I hope to be able to be in a better position in the very near future to put on the record my view.  As you would know, ministers are always at the table trying to fight for more resources for their departments because all of us think our department is the most important in the world and of course we are all seeking our piece of the pie from Treasury and through those budget discussions.  People can rest assured that I will be putting forward the best possible case I can through the next round of budget negotiations to ensure that the planning division is appropriately resourced, particularly going forward with the fantastic reforms that we are hoping to introduce in the near future.

Western Explorer Road - Bushfire Damage - 2 October 2008

Ms FORREST asked a question of the Leader of Government Business in the Legislative Council -

With regard to the bushfires in March 2008 that damaged significant areas of the western region encompassing the Western Explorer Road -

(1)   Does the Government consider the Western Explorer Road an important road to the north-west and west coast of Tasmania?

(2)   What are the reasons for the delays related to -

(a)   The removal of damaged and dangerous trees, identified in March but still in place in July?

(b)  The undertaking of an assessment of the road by the Department of Infrastructure, Energy and Resources to determine works needed to enable reopening of this road?

(3)   When is it expected that repairs to the road and surrounds will be completed and the road reopened?

Mr PARKINSON replied -

(1)   The Government understands the importance of this road for tourism operations in the region and is doing everything in its power to address the current situation.

(2)   (a)   Work to remove the debris and vegetation was organised and undertaken under the supervision of Parks and Wildlife.  During this time officers from the Department of Infrastructure, Energy and Resources - DIER - had no access until the area was considered safe.  Works have proceeded but have done so slowly and carefully due to their dangerous nature.  The work is often performed in steep, unstable terrain and cannot be carried out in wet or windy weather.  To proceed at a faster rate could compromise the safety of those working on the site.  Work is still progressing.

(b)            Officers from DIER recently gained access to the site to undertake a preliminary assessment.  A planned inspection of the already cleared southern section of road occurred on Monday 29 September 2008, which has provided DIER with a clearer understanding of any road maintenance work required.

(3)   It is hoped that the road will be reopened in late November this year.  However, this will be dependent on outcomes of further inspections and the level of work required to ensure the road and its environs are safe for use.

North-West Child Protection Services - 1 October 2008

[2.52 p.m.]

Ms FORREST (Question) - My question is to the honourable Minister for Human Services.  Minister, when do you expect the findings of the review into north-west child protection services to be made public?  How many positions in the north-west child protection services are currently vacant? Furthermore, what extra resources and funding will be provided to child protection services in the north-west of the State?

Ms THORP - Honourable members would be aware of the circumstances leading to the report that was done by Luppo Prins in recent weeks.  I received that report on Monday from Mr Prins.  It is very complex.  Currently, I am considering it, as are members of the department, and I will be making a public statement about that on Monday, which will include the departmental response to that and what implications it is going to have for resourcing in the area.

Ms Forrest - Do you know how many vacant positions there are?

Madam PRESIDENT - The time for question time being expended, I note the enthusiasm of all members to be able to grill our new ministers in this House.

Ralphs Bay Development - 1 October 2008

[2.33 p.m.]

Ms FORREST (Question) - My question is to the Minister for Planning.  Minister, you had a significant role in having the Ralphs Bay development referred to the RPDC and the conservation area amended.  Will you as Minister for Planning accept and uphold the decision of the RPDC regarding the Walker Corporation's Ralphs Bay development regardless of its decision?

Ms RITCHIE - I thank the honourable member for her question.  As the honourable member would know, that is done through the process of being a project of State significance and as such it goes back to the Premier and not me.

Tarkine Drive - Fnding Allocation - 30 September 2008

[2.48 p.m.]

Ms FORREST (Question) - Treasurer, are the funds of $23 million over four years allocated to the government project to develop a tourist drive in the Tarkine region in north-west Tasmania, known as the Tarkine drive, safe and dedicated to this project that will create a tourist road circuit through this area?  Further, is there any flexibility in forward Estimates to allocate more than the proposed $8 million in the 2009-10 financial year if the works can be carried out in an earlier time frame and the funds spent more quickly than expected?  Finally, if other tourism or infrastructure projects are developed or sought in this area of the State, would they be required to make a budgetary submission rather than seek access to some this $23 million allocated to the Tarkine drive?

Mr AIRD - I thank the honourable member for her question.  The short answer is yes, the $23 million allocated in the Budget for the Tarkine tourist road is committed to that project.  I note that when we announced the decision for that allocation there was some discussion about the appropriateness of that route and so to allow a degree of discussion and consultation relating to that route was the caveat.  But it was not a way for others who may have other opinions about that road to say that they want to reallocate the money for that project to other projects.

Ms Forrest - So a circuit road is committed to, is that what you are saying?

Mr AIRD - That is my answer yes, the money is committed to that project.  Let me clarify this.  There has been a lot of work done on this road already.  We, as a government, saw that as a priority for the north-west as a major capital work to assist the tourism industry.  I understand that the project is fairly well advanced.  It will be a project sponsored by the Government.  How it is finally developed is yet to be determined but I understand that Forestry Tasmania have a fairly advanced schedule in terms of the development of that road.

Can I make one other point, Madam President, in relation to this.  There are always going to be competing needs and competing requirements in a range of areas and I understand that there are others on the north-west coast who would prefer to see some of the allocation made to other projects.  I understand that there has been some mention of Corinna in terms of a potential development.  I am not saying that in the future there will be other projects which deserve consideration by government in terms of priority of funding.  If they have other projects, we would be happy to see those proposals.  I personally think that the north-west coast is really ripe in terms of tourism development.  I think it has a lot of unique features and they need to be developed and used in an appropriate way.

Ms Forrest - I couldn't agree more.

Mr AIRD - That is why I am not equivocating in my answer.  The only other comment I will make in relation to this is that the commitment has been made, it has been budgeted for and been approved by Parliament.  I believe to falter and not to pursue that could mean that the allocations made in the forward Estimates might not be achieved the way that they are presently allocated; in other words, there would be an underspend.  Those observing what is going on internationally and nationally need to understand that we work in that context, that it is very important for major capital works to be pursued and completed and that, as Treasurer and now as Minister for Economic Development, I am very conscious of the need for these capital works to proceed, according to the allocations made by Parliament.

There will be some discussion and there will be some argument, but in the end Parliament has approved this allocation.  I am keen to see it pursued and I will be doing whatever I can and if there is a capacity as the honourable member alludes to, that the cash flowing for some of the projects can be brought from one year to another, I would look at that.  Some of the flexibility of doing that can be constrained by fiscal principles but, nonetheless, if there a capacity to do that then we will be certainly looking at it.

Solar Hot-Water Systems - 30 September 2008

Ms FORREST asked a question of the Leader of Government Business in the Legislative Council -

With regard to the installation of solar hot-water systems to replace existing electric storage hot-water systems and which attracts a Federal Government rebate and has the capacity to feed excess power into the power grid -

(1)   How much is paid per kilowatt hour to the producer of the power?

(2)   How much is charged per kilowatt hour for power purchased by the customer when the generation of power by the solar panels does not meet the customer's demand?

(3)   How does this compare to tariffs paid by customers not utilising this arrangement?

(4)   In the event of significant differences resulting in increased power costs to consumers, does the Government acknowledge that this negatively impacts on the value of the incentive?

(5)   Is the same pricing policy used in other Australian States?

Mr PARKINSON (Hobart - Leader of Government Business in the Legislative Council) - Madam President, it runs into the sixth page so I seek leave to table the rather lengthy answer and have it incorporated in Hansard.

Leave granted.

The answer read as follows:

Before I provide the detailed answers to the specific questions asked, I would first like to explain the important difference between solar hot-water systems and solar photovoltaic systems.

Both these technologies attract rebates from the Australian Government on a means-tested basis.  Both technologies use energy from the sun, but they do so in different ways.  Solar hot-water systems use the energy from the sun to heat water directly.   Solar photovoltaic systems use energy from the sun to generate electricity that can be used to power any electrical appliance.

As solar hot-water systems do not generate electricity, they do not have the capacity to feed any excess power into the electricity grid.  They do, however, reduce a household's reliance on electricity from the grid and, as a result, also reduce household electricity costs.

Solar photovoltaic systems generate electricity for use by households and, where generation exceeds consumption, excess electricity can be exported to the electricity grid. With this clarified, I will now provide the answers to the specific questions asked in the context of solar photovoltaic installations rather than solar hot-water systems.

(1)   Aurora encourages the installation of grid interactive solar connections, provided relevant technical and safety requirements are met.  Aurora voluntarily offers a 'feed-in tariff' for households with solar photovoltaic systems that have the capacity to export excess electricity to the grid.

For solar generator units with a capacity of less than 3 kilowatts, a 'net metering' arrangement applies.  This means that energy export to the grid is credited to the account at the same rate as the import from the grid energy rate tariff.

For example, if a customer imports 2 000 kWh, the 2 000 kWh is calculated at the tariff energy rate.  If the customer exports 1 000 kWh in that same period, the 1 000 kWh is calculated at that same tariff energy rate.  The customer then pays the difference.  Both the import and export amounts are shown on the bill.

However if the customer exports more energy than is imported, then that customer will receive a credit on their account.

For solar photovoltaic systems with a capacity greater than 3 kilowatts, Aurora asks individuals to contact the Marketing Department in the company's Retail Division, for clarification on appropriate tariff energy rates.  Aurora has advised that in special circumstances approval may be extended for those smaller units, which are greater than 3 kilowatts.

The 2008 standard domestic Tariff 31 - Residential light and power -  is a 3-step rate:

All rates include GST.

The Aurora account will show, on a separate line, the readings and total units exported called 'Export Grid Connected - Residential' and will show the rates used to calculate the credit and the amount credited.

(2)   See answer to (1).

(3)   As detailed in answer to question (1), for solar generator units with a capacity of less than 3 kilowatts, a 'net metering' arrangement applies, which means that the value of energy exported to the grid is credited to the account at the same tariff rate as the energy imported from the grid.

(4)   At this stage the feed-in tariff offered by Aurora is the equivalent of Tariff 31.  On this basis, any increase in the general tariff would be matched by an increase in the tariff paid to customers.

(5)   Feed-in tariffs have been developed in other jurisdictions, to meet various policy objectives.  There are some similarities between jurisdictions, and some differences that meet different regional needs.

South Australia and Queensland currently require a feed-in tariff of 44 cents per kilowatt hour, on a net metering basis for electricity generated by solar photovoltaic cells.  Other forms of renewable energy are not eligible for this tariff.  The premium tariff is available to households with systems up to a maximum capacity of approximately 10 kilowatts.

Victoria has a feed-in tariff that is required to be 'fair and reasonable', which is at least a one for one equivalent of the retail tariff.  The tariff is offered for domestic and small business customers, on systems up to a 2 kilowatt capacity, on a net metering basis.  A premium tariff is to be introduced in 2009, at a rate of 60 cents per kilowatt hour.  The Victorian feed-in tariff is not limited to solar photovoltaic systems.

The ACT has passed legislation, which has not yet commenced, to require a premium tariff of 3.88 times the highest retail price of electricity for a domestic customer.  The premium tariff is calculated on a gross metering basis, and is available to customers with systems up to a maximum capacity of 10 kilowatts.  The legislation also provides that a reduced premium will be available to larger systems.  The ACT provisions are not limited to solar photovoltaic systems.

Western Australia has a 'renewable energy buy-back' scheme, which requires the equivalent of the retail tariff to be paid, on a net metering basis, to small renewable energy generators with a capacity up to 5 kilowatts.

New South Wales has not yet moved to mandate minimum feed-in tariffs.

The Council of Australian Governments has instigated consideration of a nationally consistent policy in relation to feed-in tariffs, and a report is expected in October of this year.

The Tasmanian Government will also be releasing a discussion paper on feed-in tariffs in the coming weeks.

Review of Racing in Tasmania - 3 September 2008

[2.38 p.m.]

Ms FORREST (Question) - Madam President, further to the question to the Minister for Racing, you said you have never commissioned a review and talked about Mr Coleman and Mr Murray undertaking a review of sorts internally.  Has consideration been given to undertaking an independent review, particularly when you look at the broadness of the scope you have identified that you want to look at?

Mr AIRD - I thank the honourable member for her question.  The conversations that I have had with the different players over a period of time have been a review in themselves; I have listened and understood the nature of what is going on in the racing industry.  I do not pretend to know everything about everything in that industry, but I think that, given the proposal put forward for discussion purposes, there appears to be, so far, a broad acceptance and if there is a broad consensus on that, then I think we should run with it.  I do not see any need for a further review.  I cannot see the purpose of having a review panel and terms of reference and a whole process which will go on for years and years, for no net gain.  Craig Coleman and Tony Murray are listening to what the industry, the industry clients and the clubs have had to say, knowing that there would be further requirements in terms of capital investment in the racing industry.  We will wait and see the results of the discussions being undertaken over the next short while, see how that pans out and see if we cannot come back here with a broad package that can win the approval of those stakeholders in the industry, the broader community and, of course, the Parliament.

Freer Farm, Burnie - 2 September 2002

[2.57 p.m.]

Ms FORREST (Question) - Treasurer, with regard to the potential sale or transfer of land known as Freer Farm in Burnie - the TAFE farm - to the Burnie City Council, has consideration been given to offering the land for sale by open tender?  If not, why not?

Mr AIRD - I am unaware of the circumstances surrounding the sale of the land.  If the honourable member wants to put that question on notice or take me at face value then I will get back to her as soon I can.  Generally, the land for sale is identified by the department as being surplus to their needs.  Then it goes through a process where it comes to me for approval.  I cannot recall approving this parcel of land as yet, so perhaps the honourable member is ahead of me -

Ms Forrest - It's been in the media recently.

Mr AIRD - Has it?

Ms Forrest - Yes.  Burnie City Council are looking at buying it or having it transferred to their ownership as an option for the future residential development.  As it is agricultural land, there are some concerns.

Mr AIRD - I have to take that question on notice.  From which perspective are you asking the question?  Do you think it should be for open tender or should it not be the Burnie council acquiring it under whatever guise?

Ms Forrest - Wouldn't the Government be interested in getting the most money they could for the piece of land?

Mr AIRD - It depends on the strategic asset.  Sometimes that is the prime consideration, sometimes it is about such things as public housing.  If it is about public housing then there may be some discount factor but, again, that has to be approved within the legislation.  Through you Madam President - you look as though you might know a bit about this yourself - it is all the more reason I want to get the question put on notice.

Removal of Baby from Mother - 2 September 2008

[2.44 p.m.]

Ms FORREST (Question) - Madam President, my question is to the honourable Leader.  When was the mother, who was incarcerated in Risdon Prison and gave birth on 22 August - and was mentioned in the Mercury on 28 August 2008 - reunited with her baby?

Mr PARKINSON - I thank the honourable member for her question.  There were significant child protection concerns over a baby born last week to a woman serving a sentence in Risdon Prison.  The baby's condition had improved after being admitted to the Royal Hobart Hospital.  An initial protection warrant, taken out when the mother was returned to prison after the birth, has expired.  Children and Family Services will be applying for a four-week order to enable a thorough assessment of placement options for the baby.  There are a number of issues which would need to be addressed before any decision could be made to place the baby with her mother in prison.  The mother has had significant problems with drug misuse in the past, and the baby was reported by hospital staff to have exhibited symptoms consistent with drug withdrawal after she was born.

The mother has three other children aged seven, five and one.  All have been subject to child protection involvement in the past and have been placed in the care of others for considerable periods, quite apart from the mother's current prison sentence.  The mother has at least another seven months to serve in prison, and the father was sentenced this week to six months in jail.  On 1 September 2008 Child Protection applied for a four-week assessment order in order to progress longer-term arrangements for the care of the infant.  Magistrate Wood in the Hobart Magistrates Court awarded an interim assessment order effective to 3 September 2008, and requested that Child Protection confirm the prison can accommodate appropriate access between the mother and child.  Further, Magistrate Wood has required a medical opinion regarding the issue of breastfeeding.  These two points will be subject to the next court hearing, which I understand is tomorrow.

In the immediate interim period, the child has been placed with an extended family member after having been passed fit for discharge on 1 September 2008.  I can confirm access between mother and child has already taken place and will continue to take place over the coming days.

Temporary Debt Management Account - 2 September 2008

Ms FORREST asked a question of the Treasurer -

With regard to the Temporary Debt Management Account, Estimates committees were informed that the Temporary Debt Management Account was $1 017 million at 30 June 2007 and Mr Challen stated that on 30 June 2008 the account was approximately $40 million less.  The forward Estimates in table 4.1 of the 2008-09 budget papers suggest that approximately $35 million per annum is to be committed to the Temporary Debt Management Account each year.

(1)   Why has the figure of $35 million been decided upon, rather than another figure?

(2)   If the amounts as described in the budget papers were not transferred to the special funds following the Hobart Airport sale, would the Temporary Debt Management Account be consequently less?

(3)   What accounts for the main movements in the Temporary Debt Management Account over the 2007-08 financial year?

(4)   Which departments are using or borrowing this money?

(5)   For what purposes are the funds being borrowed?

(6)   What rate of interest do the departments pay?

(7)   What is the quantum of interest that has been paid on borrowings from the Temporary Debt Management Account by government departments?

Mr AIRD replied -

The creation of the Temporary Debt Repayment Account within the Special Deposits and Trust Fund was approved by the then Treasurer in April 2003.

The account is an overdraft account and is administered by the Department of Treasury and Finance through the Finance-General division.  No other departments use this account.

The approved purpose of the account is to record transactions associated with the temporary repayment of State debt from surplus funds held in the Special Deposits and Trust Fund.  This allows the Government to delay borrowing until the latest possible point and reduce the costs of borrowing.

This strategy is fiscally sound and the Government has achieved greater cost savings by retiring debt rather than refinancing and investing the increased cash balance with Tascorp.

The approved terms and conditions of the account include the charging of interest on the overdrawn balance of the account to the Consolidated Fund as a mechanism for reducing the overdraft balance.

The interest rate is determined by the Treasurer by 30 June each year in respect of that financial year.

In determining the interest rate to apply in respect of the Temporary Debt Repayment Account each year, consideration is given to a range of factors including the Government's current and projected financial circumstances and its expenditure initiatives.

The forward Estimates currently include an estimated provision for interest to be recouped on the average balance of the Temporary Debt Repayment Account overdraft each year at a rate of 3.25 per cent, subject to the Treasurer's approval by 30 June each year.

Had the proceeds from the sale of government business assets been transferred to the Temporary Debt Repayment Account rather than to the Special Capital Investment Funds, the overdraft balance of the Temporary Debt Repayment Account would have been lower. However, the funds would then not have been available for expenditure by the Government on major infrastructure projects.

The movements in the balance of the Temporary Debt Repayment Account during 2007-08 reflect the repayment of debt maturing during the year - approximately $11.2 million - offset by the transfer of interest of $48.7 million from the Consolidated Fund, calculated at 4.15 per cent on the average balance of the account during 2007-08.

Road Safety - Off-Road Motorcycles - 26 August 2008

Ms FORREST asked a question of the Leader of Government Business in the Legislative Council -

With reference to question No. 25 asked on 10 June 2008 and answered on 8 July 2008 -

With regard to the high number of injuries and fatalities associated with off-road motorcycle activity on public land, as opposed to public streets, such as reserves, beaches et cetera, will the Government consider -

(a)     Imposing the same licensing and registration requirements for off-road motorcycles as currently exist for on-road vehicles?

(b)    Licensing of all off-road motorcycle riders?

(c)     Registration and insurance for all off-road motorcycles, including reduced premiums for such costs?

(d)    Drug and alcohol restrictions for off-road motorcycle riders?

(e)     Application of 'hooning' laws, including confiscation of the motorcycle for non-compliance?

(f)     Registration for all motorised bikes, including all engine capacities?

(g)     Restrictions on under-age riders to riding with a recognised motorcycle club with full supervision?

Mr PARKINSON replied -

According to the definition in the Traffic Act 1925 'public street means any street, road, lane, thoroughfare, footpath, bridge, or place open to or used by the public, or to which the public have or are permitted to have access, whether on payment of a fee or otherwise'.

It is considered that this definition covers all areas in Tasmania accessible to the public and which might be termed 'public land', including reserves and beaches.

On that basis my responses provided to question No. 25 and given to the honourable member for Murchison on 10 June 2008, remain the same.

Rural Health Services - Equipment Grants - 26 August 2008

Ms FORREST asked a question of the Leader of Government Business in the Legislative Council -

With regard to equipment grants made available for the purchase of medical equipment in rural and regional centres -

(1)   What consultation is undertaken between staff at the facility and the administrative/management staff to determine what equipment is most needed and beneficial to the patients utilising the unit?

(2)    How is the capital expenditure budget for rural units determined?

(3)   How are the nursing staff employed in the rural health services engaged in the decision-making processes related to the purchase of new equipment?

Mr PARKINSON replied -

(1)    Requests for equipment purchase originate in the rural facility and are forwarded with a business case to the Manager of the Business Support Unit.  The requests are considered in a statewide context using criteria developed by the Clinical Management Committee of Primary Health.  The issues considered include:

·          standardisation of equipment across sites;

·          relevance and functionality;

·          budgetary limitations;

·          ongoing costs of maintenance, calibration and consumables;

·          training requirements for use;

·          appropriateness of equipment to role delineation of facility;

·          interchange ability and standardisation with equipment used in the regional hospital; and

·          cost efficiencies gained from purchasing in bulk.

(2)    Equipment purchase for a site, with a value of less than $10 000 is largely sourced from the total budgetary allocation for that rural facility after approval by the above process.  Requests above $10 000 are funded by a centralised equipment budget.  For equipment  purchases over $50 000, the department has recently established a medical equipment committee which has representation from all relevant areas and operational units of Health Services including Primary Health (which has responsibility for rural facilities).

(3)    Nursing staff employed in rural sites would make representation to the site Director of Nursing about the need for equipment from their clinical experience.  These requests form the basis for the requests and the business case.

West Coast Health Services - 26 August 2008

Ms FORREST asked a question of the Leader of Government Business in the Legislative Council -

With regard to health services on the west coast -

(1)    What services are currently provided in Zeehan through Health West?

(2)    How often are these services available?

(3)    (a)    Is there currently after-hours or on-call nursing cover provided in Zeehan?

(b)    If so, what hours are covered and how many days per week; and

(c)    if not, when will this level of service be restored and what hours will be covered?

(4)    (a)    What positions are currently unfilled within health services on the west coast; and

(b)    what is being done to fill these positions?

(5)    (a)    Will the recently vacated position of youth worker in Zeehan be filled?

(b)    If so, has the position been advertised; and

(c)    if not, why not, and how will the health and other needs of the youth in the area be met?

Mr PARKINSON replied -

(1)    Community Services include Home Help, Personal Care, Home Maintenance, Social Support, Day Centre, Community Options packages, Community Aged packages and Community Nursing.  Residents of Zeehan have access to these services when needed.  Regional Health Services include Chronic Disease, Health Promotion, Social Work, Mental Health, Youth Health.  Regional Health Services are based in Zeehan but available right across the west coast.

(2)    The above services are available Monday to Friday during normal business hours. If clients require weekend care they are referred to other appropriate centres - Queenstown and Rosebery - for management.

(3)    There is no out-of-hours or on-call emergency nursing cover provided in Zeehan. Tas Ambulance has a paramedic and volunteer ambulance staff located in Zeehan which will respond to 000 calls.  There is no plan to provide an out-of-hours on-call emergency nursing service.

Individual community nursing clients living in the Zeehan district may receive scheduled care out of hours if required.

Currently, residents of Zeehan are advised to contact GP Assist for medical assistance out of hours.  If there is a medical emergency in Zeehan, the patient would call 000 for an ambulance.

(4)    The community nursing establishment for Zeehan is a full-time equivalent of 1.0. There has been difficulty in recruiting to the vacant 0.3 full-time equivalent of that but this has been recently rectified.  The other vacant positions on the west coast are:

Queenstown - four registered nurses and five enrolled nurses

Strahan - no vacancies

Zeehan - one youth worker

Rosebery- one registered nurse

(5)   The Health West youth worker position was vacated on 30 June 2008. The service is currently reclassifying this position at a higher level to attract a social worker/psychologist and will be readvertising shortly.

North West Regional Hospitals - Agency Nurses - 26 August 2008

Ms FORREST asked a question of the Leader of Government Business in the Legislative Council -

(1)    (a)    How many agency nurses have been employed each month for the 12 months ending 30 June 2008 at the North West Regional Hospital in Burnie; and

(b)    what was the cost per month to employ these agency nurses?

(2)    If any major variations to the monthly totals did occur, what were the reasons?

(3)    How many, if any, have been employed for periods greater than two weeks in the same position and what were these positions?

Mr PARKINSON (Hobart - Leader of Government Business in the Legislative Council) - Madam President, because there are some figures in this answer, I seek leave to table it and have it incorporated in Hansard.

Leave granted.

The answer read as follows:

(1)    (a)    A total of 39 agency nurses have been employed for the year ending 30 June 2008.

Monthly figures are as follows:

Jul 07       7

Aug 07     8

Sep 07     5

Oct 07     7

Nov 07    9

Dec 07     10

Jan 08      10.5

Feb 08     12

Mar 08     14

Apr 08     7

May 08    4

Jun 08      5

Agency nurses were employed in the Department of Emergency Medicine (DEM), Intensive Care Unit (ICU), Paediatric Unit and Medical Unit due to high levels of medical patients regionally.

(b)    Average cost per month was $91 847.

• Agency nurses were employed against short-term temporary vacancies caused by extended sick leave, workers compensation, maternity leave, approved additional positions and the need to provide a high level of skill mix in specialised areas such as DEM and ICU.

• A limited casual relief pool is available locally to meet short-term needs.

• Permanent vacancies are filled within a three-month period through the departmental selection process.

• Staff turnover is less than 3 per cent.

(2)    Monthly variations occurred in the last three months of 2007, and were related to the approval of additional staff in DEM and ICU to meet regional demands.  Recruitment to the areas has now occurred.

Paediatrics remains a difficult area to recruit due to the highly specialised needs of children.  Advertising has been unsuccessful.

(3)    Contracts vary from two to six months.  Please refer to question (1)(a).

Finance - Temporary Debt Account q2 - 9 July 2008

[3.12 p.m.]

Ms FORREST (Question) - A further question to the honourable Treasurer.  What accounts for the main movements in the Temporary Debt Account over the 2007-08 period - what departments are using this money, how are they using it and what notional interest do they pay?

Mr AIRD - I am not too sure that the honourable member understands.  The way the honourable member is describing the account to me might not necessarily be the way that I think I would be viewing it and so perhaps the best thing I can do is put these two questions together and get a comprehensive answer to the honourable member.

Ms Forrest - While you are on your feet, the departments within government use this account rather than borrowing externally.  What I am asking is which departments do that, what do they use it for and what interest would they pay?

Mr AIRD - I will get that detail.

Finance - Temporary Debt Account - 9 July 2008

[3.10 p.m.]

Ms FORREST (Question) - Madam President, my question is to the honourable Treasurer.  The temporary debt management account at 30 June 2007 was $1 001.7 million and Mr Challen said on 30 June 2008 the account is approximately $40 million less.  The forward Estimates in table 4.1 of the budget papers suggest that approximately $35 million per annum is to be committed to the Temporary Debt Account each year.  Why this figure?  Why not $10 million, $100 million?  What is the rationale behind the $35 million?  Further, if the amounts were not transferred to the special funds following the Hobart Airport sale, the Temporary Debt Account would be consequently less; is that correct?

Mr AIRD - Madam President, this was raised during the Estimates in the House of Assembly.  You have touched on some detail.  I will play it safe.  I will get back to the honourable member to give a precise answer in relation, particularly, to the last part of the question.  But, because it does have detail there that I do not have in front of me, I would need to take that on notice.

Ms Forrest - So what is the rationale for the $35 million, is that part -

Mr AIRD - Yes, that will be part of my answer.

Off-Road Motorcycles q2 - 8 July 2008

[2.40 p.m.]

Ms FORREST (Question) - Madam President, my question is to the honourable Leader.  This morning's answer to a question regarding the off-road motorcycle activity on public land was only related to public streets.  The question clearly states on public land such as reserves, beaches and other areas where off-road vehicles are used.  Will the Leader undertake to have this question returned to the department responsible for providing the answer and answering the question as it is asked?

Madam PRESIDENT - Does the honourable Leader wish to make a comment?

Mr PARKINSON - The comment I will make is that the honourable member is again breaching the procedure as far as these questions are concerned.  I suggest that she stick to procedure.

Water - Sale to Mainland States - 8 July 2008

[2.37 p.m.]

Ms FORREST (Question) - Madam President, my question is to the Treasurer.  Treasurer, an article by Kenneth Davidson on 7 July in the Age in relation to selling of water to the mainland States says:

'For the past four weeks the Tasmanian Government has been negotiating with the consortium to contract up to1 000 gigalitres for the project.'

That is, the selling of water.

'At this stage, negotiations are centred on the price and length of the contract.  The parties are close to an agreement, in principle.

If consummated, the contract would be the largest in Tasmania's history.  For instance, if a price of $300 per megalitre for 1 000 gigalitres is established, the return to the Government would be $300 million per year.'.

Can the Treasurer inform the House of this negotiation, whether it is actual - real or otherwise - and what progress there may be in that area?

Mr AIRD - I thank the honourable member for her question.  Yes, I am aware of that article and I am aware of Kenneth Davidson's interest in this issue.  This is his third article on the same subject and he has displayed error of fact on all occasions.  This is not my direct area of ministerial responsibility.

Ms Forrest - But water and sewerage is a favourite topic of yours.

Mr AIRD - It is a favourite topic and, in fact, I welcome questions about water and sewerage but this is a different type of water and a different ministerial responsibility.  I am aware that there have been other issues placed before the minister and he is developing a response to that article in terms of the Government's position.  However, I have to say that our overwhelming interest in water is water in Tasmania and only after we satisfy the water interests in Tasmania would we ever countenance any other development.

Having said that, I will not be drawn any further into the issue, but as soon as -

Mr Martin - Have there been any negotiations?

Mr AIRD - No, it is not my area.  I am not going to be drawn into it.  I have not been involved in any discussions at all with any proponent directly so I cannot answer that.

Ms Forrest - There have been no negotiations with you then, that is what you are saying.

Mr AIRD - I am not involved in any discussions with them.  I do know there have been various proponents around who have said that they would be interested in floating water across from here to Adelaide and a number of other ideas.  However, as soon as the minister has cleared a response I will be only too happy to distribute it to honourable members.

Off-Road Motorcycles - 8 July 2008

Ms FORREST asked a question of the Leader of Government Business in the Legislative Council -

(1)      With regard to the high number of injuries and fatalities associated with off-road motorcycle activity on public land, will the Government consider -

(a)      imposing the same licensing and registration requirements for off-road motorcycles as currently exist for on-road vehicles?

(b)      Licensing of all off-road motorcycle riders?

(c)      Registration and insurance for all off-road motorcycles, including reduced premiums for such costs?

(d)      Drug and alcohol restrictions for off-road motorcycle riders?

(e)      Application of 'hooning' laws, including confiscation of the motorcycle for non-compliance?

(f)       Registration for all motorised bikes, including all engine capacities?

(g)      Restrictions on under-age riders to riding with a recognised motorcycle club with full supervision?

(2)      With regard to injuries and fatalities associated with off-road motorcycle activity with occur on private land, will similar considerations as detailed in (1) be given?

Government Gazette Publication - 8 July 2008

Ms FORREST asked a question of the Leader of Government Business in the Legislative Council -

(1)      (a)      Is Tasmania the only State in Australia which does not publish the Government Gazette on the government web site; and

(b)      if so, will a commitment be given to publish the Gazette on the web site so as to enable a convenient and low-cost access alternative?

Mr PARKINSON replied -

(1)      (a)      Yes, it would appear that Tasmania is the only State not to have a copy of its Government Gazette online, although the Government does make employment opportunities available online at www.jobs.tas.gov.au.

Queensland only makes an electronic copy of its Gazette available four days after publication.

(b)      Until recently the Government Gazette was produced by the Printing Authority of Tasmania.

The Printing Authority of Tasmania was sold this year to PrintLinx Pty Ltd and is now operating as Print Applied Technology Pty Ltd.  Contractual arrangements have been put in place to formalise the previous printing services provided to the Government by the Printing Authority of Tasmania.  This included a contract for services with Print Applied Technology to produce the Government Gazette for three years.  Obviously sales of the Gazette provide a source of revenue to Print Applied Technology and the Government must abide by the terms and conditions of the current contract.

If the Government Gazette was to be made available online, there would be some contractual issues that would need to be addressed with Print Applied Technology.

The options for making the Gazette available online will be explored.

Fibre-Optic Cable - 10 June 2008

[3.48 p.m.]

Ms FORREST (Question) - Madam President, my question is to the Treasurer.  With regard to the fibre-optic cable across Bass Strait and the high number of ISPs who are pulling out stating that they can no longer be financially viable or competitive in the current market and in view of the fact that I understand we are paying $2 million a year just to maintain that fibre-optic cable in existence across the Strait, what action is the Government taking to address, as a matter of urgency, the need to support IT business and industry as a whole in our State and improve the chance of a fibre-optic hook-up in the near future?

Mr AIRD - I thank the honourable member for her question.  The Government has left no stone unturned here in trying to get some competition across Bass Strait in relation to optic fibre.  We, as a State government, sought a strategic partner and selected Aurora to be our strategic partner in commercialising the over $30 million worth of optic fibre we have in the ground in Tasmania.

We have struck problems in our discussions with the present owners of the optic fibre across Bass Strait.  It has been an extremely frustrating exercise for those representing the Government in the negotiations with City Spring and others.

Let me reassure honourable members that I treat this with a great deal of urgency.  I think honourable members will recall that when I have talked about putting in place the appropriate infrastructure in Tasmania, when I have talked about water and sewerage, along with water and sewerage I consider optic fibre essential in terms of microeconomic reform in this State.

I believe that with the passing of the legislation relating to water and sewerage, optic fibre is in train.  I think we can now see the investment needed in water and sewerage.  Optic fibre is a major issue for us.  I do not want anyone here to believe that we have not been endeavouring with all our energy to try to commercialise the optic fibre in Tasmania along with City Spring who own the cable across Bass Strait.

Ms Forrest - Can we expect anything in the near future because these businesses are pulling out left, right and centre?

Mr AIRD - That is not new.

Ms Forrest - I know it's not new but it just goes on and on.

Mr AIRD - Do you think I am happy about this?  No.

Ms Forrest - I'm not.

Mr AIRD - If you had been where I am, seeing what we have had to face, you would be just as frustrated as I am.  It has not been lack of will or effort on the part of the Government to commercialise.  I am increasingly annoyed, as you may be and everyone else in Tasmania should be, about the frustration that we have been confronted with in commercialising and providing competitive pressure.  That is the issue here.

Why do we need competition?  Because the incumbent have a virtual monopoly on optic fibre and they are charging exorbitant rates while they can and we know that they can flick a switch and change their pricing structure overnight if they want to, Madam President.  But they refuse to do so because there is no competitive pressure to encourage that sort of behaviour.

Mr Harriss - Are you sure they are charging exorbitant rates?  Are you absolutely certain about that?

Mr AIRD - I have no doubt.  Why do you think the ISPs are pulling out?  Because they cannot afford it.  They are charging exorbitant rates.  You talk to any provider, you talk to any potential carrier and they will tell you.  They say the rates are between five and 10 times more expensive from Melbourne to Hobart, or from Hobart to Melbourne, than they are from Melbourne to Adelaide - six times more expensive than from Melbourne to New York.  That is the type of pricing structure we are faced with.  That is why we need competitive pressure.  The frustration is the pricing structure of the present incumbent, but we will finally win through in this.

Mr Harriss - Aren't the prices the same as the mainland?

Mr AIRD - They are not.

Mr Harriss - You are absolutely certain?

Mr AIRD - Yes.

Mr Harriss - Spot on?

Mr AIRD - Yes, absolutely.  You talk to anyone involved and you will find that the pricing structure is skewed.

Ms Forrest - Are we likely to get a resolution here or a solution?

Mr AIRD - We are working on it.  We are in discussions regularly trying to pull off the deal across Bass Strait.  We have been frustrated at every turn, and  there are probity issues involved here - there are legal issues involved here - and it is not straightforward.  I wish it were.

Ms Forrest - But is there an end in sight?

Mr AIRD - Yes, there is an end in sight but it is certainly not as soon as I would like.  I would like it tomorrow.  I will be working assiduously, as we have in the past months and years, to try to make sure that we can provide some competitive pressure across Bass Strait.  This is going to be a major lift for our economy and we have done other things in this State that I think are going to add value in terms of data storage and transfer.  I can see the potential for a major lift to our economy if we can get an appropriate arrangement, or at least comparable pricing across Bass Strait.  Once we do that, we will see a lift in the economy.

Also, in terms of our education and health systems, we need to have a better, more vibrant optic-fibre and broadband situation in Tasmania.  I want to assure honourable members here that we are doing everything we possibly can within our ability to effect change in this area but we have been frustrated by others.  I can only give a commitment to this House that I will be doing whatever I can to make sure that this comes through.

Rate-Attracting Assets - 10 June 2008

Ms FORREST asked a question of the Treasurer -

(1)   Are rates paid to the local council in respect of the wind turbines at Woolnorth that are fixed to the land or are rates equivalents paid to the Government?

(2)   (a)     Is there a threshold value of a rate-attracting asset that determines whether rates are paid direct to the relevant council, or appropriated instead by government as a consequence of the principle of revenue neutrality; and

(b)    if so, what is the threshold?

Mr AIRD replied -

·        Roaring 40s pays rates directly to Circular Head Council for the land it owns on which the Woolnorth Bluff Point and Studland Bay wind farms stand.

·        Hydro Tasmania's rates equivalents payments relate to the land associated with its hydro-electric assets, which fulfils the State's competitive neutrality obligations and the agreement reached with the local government as a part of State-local government financial reforms.

·        For other land-holdings, Hydro Tasmania and related entities such as the Roaring 40s joint venture are subject to rates levied directly by councils.  The Government is not involved in these arrangements.

·        A threshold to distinguish between rates payable to councils and rates equivalents is not necessary.

Government Businesses - Rates Equivalents - 10 June 2008

Ms FORREST asked a question of the Treasurer -

With regard to rates equivalents paid by government businesses, the purpose of which is to meet the competitive neutrality requirements of the National Competition Policy -

(1)    What is the total of rates equivalents paid or due to the Government for the 2007-08 financial year broken up into local government areas?

(2)    (a)      Are any of these amounts remitted to the relevant councils; and

(b)      if so, how much is paid, for what property and to which council?

Mr AIRD replied -

In 2007-08, $2.9 million was paid by Hydro Tasmania as rates equivalents.

·        The payment is made to the State Government and is not remitted to the councils, as was agreed with local government as a part of State-local government financial reforms, under which each level of government agreed to recognise each other's taxes.

·        The methodology does not allocate notional amounts of rates equivalents to the individual councils.

Department of Health and Human Services Annual Report - 10 June 2008

Ms FORREST asked a question of the Leader of Government Business in the Legislative Council -

With regard to questions raised during the motion to note the Department of Health and Human Services 2006-07 annual report -

(1)   Is the Australian College of Midwives Tasmania Branch - ACMTAS - considered a key stakeholder by the Government in issues related to health services in Tasmania?

(2)   Will a representative of ACMTAS be invited to attend future health plan forums?

(3)   Which hospitals have introduced the newborn baby hearing screening?

(4)   Is, or will, this newborn baby hearing screening be provided to all babies born at the North West Private Hospital and the Mersey hospital?

(5)   With regard to exclusive breastfeeding rates as noted in the report -

(a)   When will statistics regarding exclusive breastfeeding rates at six months be collected?

(b)  Does the number 8 referred to in the report refer to a percentage of mothers?

(c)   Is there any plan to collect and report this data at six weeks and three months to better reflect breastfeeding rates?

(6)   Have the two responder units established at Port Sorell and Longford been used and if so, how many times?

Mr PARKINSON replied -

(1)   Yes, the Australian College of Midwives Tasmania Branch - ACMTAS - is considered a key stakeholder by Government in issues related to health services in Tasmania.

(2)   No, there are no plans to invite ACMTAS to attend future health plan forums.  Membership of the forums consists of representatives of local government, health sector unions, general practice networks, the University of Tasmania, non-government peak bodies and consumers.  These stakeholders were selected with a view to representing regional issues rather than specific professional bodies or interest groups.  The Tasmania's Health Plan community forums are one part of a broad consultation strategy that the department is undertaking to gain community input into the implementation of Tasmania's Health Plan, which also includes consultation sessions at departmental facilities that are open to the public, newsletters, web site updates, and targeted consultation on specific issues.

(3)   The newborn hearing screening program is a statewide service which aims to screen all babies for permanent hearing loss.  It has been progressively implemented across public and private hospitals throughout Tasmania commencing with the Launceston General Hospital in 2006 followed by Mersey Community Hospital, North West Private Hospital and the Royal Hobart Hospital.  An outpatient screening service is provided at Scottsdale Hospital every two months.

Birth registration information is monitored by the service to ensure that all newborns, including those born at home, have access to the service.

Newborn hearing screening will commence at the remaining maternity units at Calvary Hospital, Lenah Valley and Hobart Private Hospital during 2008.

(4)   The newborn hearing screening program has been introduced at both these hospitals.

(5)   (a)   Exclusive breastfeeding rates at six months are being collected.  It is important to note that participation rates at later nurse health assessments are lower than at earlier assessments.

(b)  Yes.

(c)   Data on exclusive breastfeeding rates at six weeks is being collected and reported internally.  There are plans to report this data externally.  Reporting of breastfeeding rates at three-month nurse health assessments is not recommended as a result of the low participation rate of mothers of children this age.

(6)   The Port Sorell first response unit became operational in December 2006 and has been activated 63 times.  The community are very supportive of the unit and its volunteers and the local Lions Club have purchased a first response vehicle and the unit's volunteers have extended their level of training beyond cardiac cases.  The Longford first response unit became operational in May 2007 and has responded to 21 cases since it commenced operation.

Council of Obstetric and Paediatric and Morbility Annual Report - 10 June 2008

Ms FORREST asked a question of the Leader of Government Business in the Legislative Council -

With regard to the 2005 annual report of the Council of Obstetric and Paediatric Mortality and Morbidity, a report that is prepared from the perinatal data collection forms completed and lodged following the birth of every baby in Tasmania -

(1)   Figures related to self-reported tobacco-smoking status during pregnancy by hospital, only record data for the Royal Hobart Hospital - RHH - the Launceston General Hospital - LGH - and Mersey hospital.

(a)   Why are the figures related to self-reported tobacco-smoking status during pregnancy not recorded at the North West Private Hospital, where more than half the north-west births occur?

(b)  Can a further breakdown of these figures be provided?

(2)   Figures related to births by hospital, record births reported to the RHH, LGH, Mersey hospital, district hospitals, the private sector and others including homebirths.  As the majority of births in Burnie are public patients who access maternity services at the North West Private Hospital through a public maternity service provided by a private operator under contract with the State Government, why are these births not recorded separately to enable meaningful comparisons?

Mr PARKINSON replied -

(1)   (a)   Figures are collected at the North West Private Hospital.  Self-reported smoking during pregnancy is one of many clinical data items that are collected from all public and private hospitals via the perinatal data collection.  This information is recorded for all births in Tasmania including home births.  The fact sheet on smoking and pregnancy recently released by the department reported the smoking rates only for hospitals which were managed by the department during the time period analyses were completed for, namely, the Royal Hobart Hospital, the La unceston General Hospital and the Mersey campus of the North West Regional Hospital.

(b)  Smoking and pregnancy data can be provided for the North West Private Hospital.  However the department will need to seek permission from the hospital to release this information in accordance with an agreement for the supply and management of clinical patient information.

(2)   Self-reported tobacco smoking status is recorded for all obstetric patients at the North West Private Hospital.  Approval would need to be obtained from the hospital in order to enable analysis of this data to be conducted.

Climate Change Legislation - 10 June 2008

Ms FORREST asked a question of the Leader of Government Business in the Legislative Council -

Is it expected that the proposed climate change bill will be released so as to provide adequate opportunity for consideration and comment by all key stakeholders, prior to the bill being introduced into the Parliament in the year's budget session?

Mr PARKINSON replied -

The Premier, in his Agenda 2008 speech, announced that Tasmania would become the second State in Australia - following South Australia - to legislate for greenhouse gas emissions reduction targets.  He has committed the Tasmanian Government to introducing legislation in the budget session of Parliament.

It is expected that the climate change bill will be released in early June for a two-week-consultation period and comments sought prior to the bill's being tabled in Parliament.

Sex Industry Offences Legislation - 10 June 2008

Ms FORREST asked a question of the Leader of Government Business in the Legislative Council -

With regard the Sex Industry Offences Act 2005 which, by proclamation, commenced on 1 January 2006 -

(1)   (a)       When is it expected that the review into the provisions of the act will be commenced and subsequently tabled in the House; and

(b)      which officers will be conducting the review?

(2)   How many charges have been laid and convictions recorded in relation to the act since its commencement?

(3)   What has been the outcome of investigations relating to premises and persons of interest Tasmania Police had identified by June 2006?

(4)   (a)       Has Tasmania Police experienced any specific problems in enforcing the provisions of the legislation; and

(b)      if so, what difficulties have been experienced?

(5)   Is there evidence that the sex industry has been forced underground into more covert operations?

(6)   Have there been any reports from workers in the industry with concern or complaint in relation to the effect of the legislation?

Mr PARKINSON replied -

(1)   In accordance with the provisions of the act a review of the act will be commenced later this year and will be tabled by the end of this year.  At this stage the Minister for Justice has not made a decision on who will conduct the review.

(2)   Nil.

(3)   Tasmania Police conducted investigations and no breach of the law was detected.

(4)   (a)   Tasmania Police has held some preliminary discussions with the Department of Justice and will be providing comment to the review in due course, including whether any amendments are desirable.

(b)  It would be inappropriate to highlight any operational aspects relating to enforcement as this may compromise operations and intelligence activities.

(5)   Tasmania Police has no evidence that the sex industry has been forced underground into more covert operations.

(6)   A search by the Department of Police and Emergency Management of its correspondence office, as well as enquiries with each geographic police district, has not identified any reports from workers in the industry with concern or complaint in relation to the effect of the legislation.

Tourism - Zone Marketing Program - 10 June 2008

Ms FORREST asked a question of the Leader of Government Business in the Legislative Council -

With regard the promotion of tourism throughout Tasmania and in particular the implementation of the proposed Zone Marketing program -

(1)   How will the resources allocated to each zone marketing group be distributed?

(2)   In what ways will the zones improve tourism growth in smaller regional towns and bring more people to regional areas?

(3)   Will the adequacy of resources allocated to each zone marketing group be monitored at the size, demographics and existing tourism operations of the proposed zones vary?

(4)   (a)     What will be the process involved in applying for funding; and

(b)    how will this funding be allocated?

(5)   (a)     Will local government bodies with limited financial capacity to match the 'dollar for dollar' funding receive a proportional allocation of funding; and

(b)    if not, why not?

(6)   Where a zone extends over local government boundaries, will these particular councils be expected to contribute funds to two or more zones?

(7)   How will the implementation of this program assist the tourist visitor information networks - TVINs - and make them more efficient and effective?

(8)   Is there any plan to develop a common reservation platform to make it possible for the TVINs to network efficiently?

(9)   Will the TVIN system become more proactive within the tourism framework rather than reactive in the sense of responding to visitor inquiries?

Mr PARKINSON replied -

(1)   Up to $100 000 is allocated per zone and each zone will be required to match the government dollars to qualify for the entire $100 000.  Any zone that cannot raise $100 000 will nonetheless be awarded a matching amount to what they have been able to raise from the fund allocated to that zone.  Any residual funds that are unable to be matched in this process will continue to be spent by government on behalf of the zones to promote them in our key domestic markets.  The contribution towards achieving the full matched amount can come from any source within a zone, and is not restricted to tourism operators.  It can also include any interested stakeholders, councils, chambers of commerce, et cetera.

(2)   The zones will improve the consumer understanding of the depth of the Tasmanian offering by making Tasmania's proposition to the consumer even more clearly understood and, most importantly, more logically presented.  In 2007, Tourism Tasmania conducted the most extensive piece of consumer research that has been undertaken in the last five years.  This perception study highlighted that, currently, consumers have a reasonable understanding of Tasmania as a whole - as that is the way we have largely presented the offering to our consumers.  However, they struggle to articulate any depth or dimension to its component parts.  Outside of some key iconic or geographic cornerstones, they are unable to articulate what they will find and what activities will entertain them in the broader areas of the State.  Through this strategy, we are aiming to maximise understanding and connection with the destination, and thereby grow expenditure and length of stay. In short, this approach gives consumers more reasons to stay longer, and experience more.

Therefore, smaller locales are provided greater opportunity to leverage more directly off the Tourism Tasmania brand messages.  Assuming they want to make an investment in growing their tourist visitor base, they have a greater opportunity to do this in partnership with government and industry which has a chance to deliver to them an improved return on their individual promotional investment.

(3)   The funding allocation has been committed to this strategy for each of the next three years.  Tourism Tasmania is constantly measuring visitation, yield and length of stay through a variety of credible research sources and overlaying information around demographics, infrastructure and industry capacity to deliver.  This process of constant monitoring will not change and will serve to support the process over the next three years.  Forecasts will be issued and as or when they herald impact on any given zone or region, attention will be given to the adequacy of resources to keep ahead of any trends or changes in performance.  This is the consistent way that Tourism Tasmania has managed the performance of its various programs and these processes will remain in place to support this new direction.

(4)   (a)     Local dollars will be contributed to the campaign and applied to support the various communication elements of an agreed campaign that is, to buy advertising space, produce maps, brochures and other local area marketing collateral that will support visitation to and around the zone.  Government will contribute matching dollars to these activities that will be channelled through the Regional Tourism Authorities - RTAs - to meet expenses as they occur.

(b)    Funding will be allocated on a dollar for dollar basis where any dollar raised within a zone, up to a maximum of $100 000, will be matched by government.

(5)   All local governments will have the same opportunity to participate in this zone marketing program.  Clearly some are more able than others to participate financially, and will choose to do so according to their own estimation of the value of tourism to the economic wellbeing of their local area.  In areas where tourism is of less critical importance than other industries, logically a council may place this lower down its list of business priorities.

Equally, where tourism is critical to the growth or economic wellbeing of a local government area, that council may choose to participate proportionally more.

This is a commercially focused and business driven strategy and councils are encouraged to fully consider their role and contribution to the promotion of their area to potential visitors using the three lenses of growth, economic impact and community benefit to guide them.

(6)   If a council sees a commercial, community or economic growth benefit in making contributions to one or more zones, they are encouraged to do so.  There are no dictates about how councils may choose to participate in the zone marketing program and they are certainly under no obligation to participate in funding more than one zone.

(7)   The proposed Zone Marketing program was not designed to focus on development.  There are other specific areas of Tourism Tasmania where the development of the industry and visitor servicing is supported and managed to a great extent.  The Zone Marketing strategy is entirely focused on the marketing, communication and promotion of the various parts of the State to drive visitation.  As such, it has no remit for improving the efficiency or effectiveness of the Tasmanian Visitor Information Networks - TVINs.  However, Tourism Tasmania has, with centre managers, developed a code of practice for centres to guide its operations and effectiveness.

The network is now exploring how the zone concept may impact on the delivery of their services.  Centres are continuously working with their peers and their owners to make their centres more efficient and effective and this commitment is expected to continue.

(8)   The code of practice encourages centres to book accommodation and experiences around the State and most now pursue this with gusto appreciating that commissions earned on bookings contribute to the sustainability of individual centres.  Tourism Tasmania has supported the concept of online bookings and is currently looking at opportunities to simplify the booking process for all operators, including the TVINs.  Tourism Tasmania has recently concluded a 'request for information' process which has highlighted the availability of 'open exchange' platforms that will ultimately support the delivery of online booking capabilities for the State.  This would obviously include our TVIN centres.  Tourism Tasmania will go to tender for the first components of the online solution to support industry by mid-2008.

(9)   By nature, a visitor information centre exists to respond to consumer need when a visitor is on the ground in any given area.  However, I would also say that it is certainly my view that a more proactive approach will ultimately result as the TVINs are able to communicate more effectively with all operators and with one another.

I expect that they will play a critical role in developing and promoting local itineraries to visitors and presenting them with broader creative options for Tasmanian experiences.

Royal hobart Hospital - Draft Brief - 17 April 2008

[2.53 p.m.]

Ms FORREST (Question) - My question is to the honourable Leader.  According to The New Royal Planning and Evaluation News, issue 2, February 2008, a draft preliminary functional brief has also been developed.  It stated that this document outlines what services the new hospital will provide and how it will deliver them.  When will this brief be released and further provide for community input and consideration of this important development?

Mr PARKINSON - I thank the honourable member for her question.  The short answer is that a draft preliminary functional brief will not be released because it is a working document, but it will form part of studies that are working into a master plan option, which will be available for consideration.

Government Departments - Payment of Accounts - 17 April 2008

[2.48 p.m.]

Ms FORREST (Question) - Treasurer, have you recently received notification from any minister pursuant to the Treasurer's Instructions related to reporting financial difficulty within a department and the inability to pay accounts?

Mr AIRD - I think the honourable member would be well aware that I am not held responsible for the individual account payment of every agency of every bill.

Ms Forrest - There is a requirement to report to the Treasurer.

Mr AIRD - I said that I would look into the matter for the honourable member.  I will get back to her in relation to that Treasurer's Instruction that she refers to and when I have had all the information relating to the payment.  Regarding the payment of bills, some people have different relationships in terms of the dating of creditors - 30, 60, 90 days and so on.  I have indicated that I will have a look at this issue -

Ms Forrest - Have you received a report from the minister?

Mr AIRD - and I will report back to the honourable member, seeing that -

Mr Harriss - It's been five months since they got the bill - get on top of your portfolio!

Mr AIRD - The last time I looked, Mr President, I was not the Minister for Health and Human Services.  Let me say quite categorically that if there is any apparent behaviour of any agency that is brought to my attention that needs some remedial action taken, I will take it.  That is why I have indicated that I will investigate the issues raised by the honourable member and I will get back to her about those claims.

Department of Health and Human Services - Payment of Accounts q2 - 17 April 2008

[2.40 p.m.]

Ms FORREST (Question) - I have a supplementary question, Mr President.  Treasurer, previously I have questioned the payment of accounts by the Department of Health and Human Services, particularly in line with Treasurer's Instructions that provide a framework for timely payment of accounts and also notification by ministers to the Treasurer should there be financial difficulty and payments not occurring.  If this is the case and the account still remains unpaid and has now been put in the hands of a collection agency, would you expect to have received a notification in some way at this stage from the minister regarding this account that remains unpaid?

Mr AIRD - Mr President, I thank the honourable member for her supplementary question.  I have given a clear indication, Mr President, that I will have the matter reviewed and when I have obtained the relevant information I will get back to the honourable member.

Mr Harriss - So you're not even on top of your portfolio at Treasury.  You don't know who's paying the bill and who's not.  You don't know where your finances are, you're down the gurgler -

Mr PRESIDENT - Order.  The honourable member is not asking a question.

Mr AIRD - I wish you great success in the forthcoming election.

Members laughing.

Mr AIRD - I think the rigour and intensity that you bring to this place when putting me under pressure will stand you in good stead, despite the fact, Mr President, as I have indicated, I would vote for him if I was in his electorate.

Members laughing.

Department of Health and Human Services - Payment of Accounts - 17 April 2008

[2.39 p.m.]

Ms FORREST (Question) - Treasurer, is it a fact that the Department of Health and Human Services is not in a position to pay outstanding accounts, as evidenced by an account sent to the DHHS on 13 November from Away Voice & Data Pty Ltd that still remains unpaid for work carried out at the magistrate's court in Risdon Prison and has now been placed in the hands of a debt collection agency?

Mr AIRD - I thank the honourable member for her question.  I do not know the detail relating to those accounts.  I will have it looked into to find out the circumstances that surround those bills and will get back to the honourable member.  Can I just say, it might be more prudent for the honourable member to raise these things by letter in order for me to provide a satisfactory answer.

Government Businesses - Payments to State Government - 15 April 2008

[2.35 p.m.]

Ms FORREST (Question) - Treasurer, with regard to the payment of rates equivalents by government businesses to State rather than local government, as noted on my second favourite web site, the Treasury web site, it says:

'Crown land held by Hydro Tasmania will continue to be exempt from rating liability.  Hydro's highly capital-intensive asset structure would result in massive rating revenue to a few councils and therefore make revenue neutrality difficult to achieve.  However, to ensure competitive neutrality, a rates equivalent arrangement to apply to the Hydro will be established so that the Hydro meets the Government's National Competition Policy obligations.  The State Government will retain the revenue from such an arrangement.'

Firstly, as there are more government offices in Hobart than there are on the west coast, yet there are many more dams and power stations in the latter region compared to Hobart, and Hobart City Council receives its full rates entitlements on these government properties, yet the Government does not pass on to the relevant council the rates equivalents it has received in respect to Hydro, how is the principle of revenue neutrality explained in this context?  Secondly, are there other instances that demonstrate the application of this principle of revenue neutrality?

Mr AIRD - I thank the honourable member for her question.  I think the honourable member for Montgomery would be able to provide some part of the answer to this question.

Ms Forrest - I didn't ask her.

Mr AIRD - No, I know but I think it might relate to her in her capacity as president of LGAT.  We went through some fairly serious negotiations about financial relationships between the State and local government.  There was a prior attempt in 1990 which faltered because of a lot of consideration about other matters relating to local government so it really did not have much chance of success.  I am pleased to say that there is now an agreement with local government about the sharing of rate and tax bases and so on between local government and the State Government.

However, local government itself was in a bit of a dilemma about this issue because if you proceeded down the course of action that you are favouring, it would favour your electorate without doubt, but it would disadvantage nearly every other.  Central Highlands comes into the honourable member for Rowallan's electorate and mine, but a large part of the Hydro assets are on the west coast and it was deemed appropriate that they be excluded from formal relationships between State and local government.

I understand the Mayor of the West Coast Council is always happy to remind me of what he perceives to be the inequity in the financial relationships between State and local government.  As I pointed out, if he was to benefit from this every other local council would be disadvantaged.

Ambulance Service Funding - 10 April 2008

[3.01 p.m.]

Ms FORREST (Question) - Treasurer, following up from questions asked yesterday regarding the ambulance levy, will you commit to pursuing potential funding of the ambulance service through the Medicare process, through COAG or through another avenue?

Mr AIRD - I thank the honourable member for her question.  I would need to check the status of the approach.  I have spoken to the Minister for Health and Human Services about this issue.  It has been raised informally with the Federal Government.  I do not know if there has been any formal approach, but I do know that Queensland, in looking after what they consider their jurisdiction's issue, has raised the issue and it has drawn some -

Ms Forrest - There could be a national push on then?

Mr AIRD - I have indicated there may be a national solution to this problem, but it does not allow us to avoid our own obligations in the meantime.  Although I am generally optimistic about the COAG process in delivering major reforms in terms of the Commonwealth-State relationship, I do not know if the COAG process is going to be able to deliver on the Medicare contribution to ambulance services across the nation.  I think that there will be a lot of issues to be dealt with across jurisdictions to get to a national perspective of funding.

Government Advisers - Locations - 8 April 2008

[2.48 p.m.]

Ms FORREST (Question) - Treasurer, in a recent answer to a question given by Minister Kons in another place regarding dismissal of a Burnie-based adviser, he stated, and I quote from Hansard:

'He applied for a job as a mining adviser.  I suggested to him that it was not possible to be a mining adviser in the Burnie office because I believed all advisers should be located in Hobart.  That was my stated position.'

Treasurer, is this Labor Party policy that all advisers should be based in Hobart and, as a minister of this Government, do you hold the same view?

Mr AIRD - Mr President, I am not going to comment.  Each minister will deal with their staffing arrangements as they see fit.  I am not going to comment on this issue.  I take at face value what the minister said.

Ms Forrest - Is it a policy of the Government, though?

Mr AIRD - It is up to the minister to make those determinations and I support the minister in making those determinations.

Government Business Enterprises - Rates Equivalent - 8 April 2008

[2.44 p.m.]

Ms FORREST (Question) - Treasurer, my question relates to rates equivalents paid by government businesses.  I understand the purpose of rates equivalents is to meet the competitive neutrality requirements of the National Competition Policy, such that the GBEs pay rates equivalents to the Government rather than to a local council.  Can you tell me what is the total of rates equivalents paid or due to the Government for the 2007-08 year broken up into local government areas, and are any of these amounts remitted to the relevant councils?

Mr AIRD - I thank the honourable member for her question.  It requires a fair bit of detail and I would ask her either to put it on notice or I can take it as a legitimate question that deserves a detailed answer and I will provide it to the honourable member as soon as possible.

Protection of Agricultural Land Policy - 3 April 2008

[2.35 p.m.]

Ms FORREST (Question) - My question is to the honourable Leader.  Does Minister Kons agree with the RPDC's decision that the changes to the Protection of Agricultural Land policy represent a significant change?  If so, when does he intend to refer the PAL policy review process back to the RPDC?  If not, when will the new PAL policy be released?

Mr PARKINSON - I thank the honourable member for her question.  Minister Kons agrees that the Protection of Agricultural Land policy as reviewed does represent a significant change.   The policy as reviewed is intended to go to the RPDC following its consideration by Cabinet.  This is intended to occur within the next few weeks.

Water and Sewerage Reform - 2 April 2008

[2.40 p.m.]

Ms FORREST (Question) - My question is to the Treasurer, in response to yesterday's question, and his answer, regarding the water and sewerage reform and the structure of the company that is being set up.  As this is a new and untried company structure, how long will it take to set up the company, bearing in mind similar company structures such as TAHL took two years to set up?  Further to that, I understand there are to be three individual companies which will each be accountable and scrutinised under the GBE scrutiny committee's process.  Will the common members of each individual company attend hearings and, if so, how will this ensure the individual companies are appropriately scrutinised?

Mr AIRD - I thank the honourable member for her question.  The bill in its final draft will be going to Cabinet this Monday and we are into the tenth version of that draft.  To a large extent it is a work in progress but the fundamentals as released in February are the same.

There will be three companies, quite rightly, and there will be a common service provider subsidiary which will be owned by the three regional bodies.  What we are using is a State-owned company actually owned by local government.  It is my view that given that these companies are established by statute, or the intention is to establish them by statute, they should be open to scrutiny as instruments of a major undertaking in terms of water and sewerage in the State.

I must say in terms of scrutiny, yes, they will be presenting to the GBE committees.  In what order and at what time?  That is a matter of discussion between Parliament and the relevant Chambers.  But they will be separate entities, they will be separate companies.

Ms Forrest - But as common members.

Mr AIRD - That is true in part.  There will be some common members and there will also be some local members.  The idea behind the common membership, of course, is to provide overall strategic direction and consistency in decision making across -

Ms Forrest - A statewide approach.

Mr AIRD - Just do not anticipate too much here.  The principles that have been put in place have been agreed to with local government.  The Premier's Local Government Council has agreed to the model as put forward and they are -

Ms Forrest - They are not in entire agreement.  They might have agreed; they do not have to be in entire agreement

Mr AIRD - Let me just explain the background to this.  There was, as you would imagine, a lot of discussion between local government and the State Government about the appropriate model.  The relevant positions have been satisfied in terms of the structure.   From the State Government's perspective, perhaps there would be other aspects I might like to see incorporated but have not been.  Local government have said, 'Look, we want to own the asset, we want to manage the asset'.  We have agreed to that.

We believe, as a State government, we have a legitimate role in trying to provide a statewide strategic view of what should go forward in terms of legislation.  Various councils or various individuals within councils might have a differing view but in terms of getting an agreement there has to be an element of compromise from all positions.  That is what has occurred and that is why we finally got an agreement.  That is what is so historic, that whatever the relevant arguments between either side, we were able to bring them together into a common position, representing the interests of local government and State Government.  Do not forget that in the final analysis it is a local government-owned and operated entity and that will be to the satisfaction of local government.  It is a major thing.  It is a major aspect of the discussions in terms of local government.

Ms Forrest - How long is it going to take to set it up?

Mr AIRD - In terms of setting it up we will, hopefully, within the next fortnight be able to discuss the whole bill here.  I will be able to give time frames about the threshold times in establishing the companies, and give times about the transfer of asset and so on.  That will be the time for that discussion to occur.

Ms Forrest - Didn't TAHL have time frame for establishment, too?

Mr AIRD - Have no doubt about this.  Do not compare it with any other similar organisation.  This entity is unique.  There are agreed time frames in terms of implementation and we will be trying to work towards those dates.  When we present the legislation we will give indications of the timing.  I can assure you that we will be working assiduously to make sure the implementation time frames are realistic.  The transitional arrangements will be over a number of years in terms of how the entities are going to operate.  But it is in everyone's interests to provide some certainty to the process.  That is why the time frames regarding the introduction of the legislation were agreed to with local government.

They want some certainty for themselves.  They want certainty for their employees and they want a certainty of outcome.  We will be putting forward the legislation to both Houses within the next fortnight and we will be going through the issues in the legislation.  I could make a second reading speech here now but I do not think honourable members would want me to do that.  Let me assure you that we will be working very hard to establish the companies as soon as practicable if the passage of the legislation is successful.  Then we will be meeting these time frames because the task before us is enormous.  As soon as we have the appropriate structures in place, the appropriate regulations in place, we can work with certainty to deliver the outcomes that are expected in regard to overall interest and investment.

Mr Harriss - Are you now going to move the second reading of the bill?

Mr AIRD - Mr President, I commend my answer to the House and I thank the honourable member for Huon for his advice.  Obviously it is a topic which I can talk about for a long time.  I do not know if supplementary questions are going to satisfy other members' curiosity.

Mr PRESIDENT - I think we have spent enough time on that subject for the moment.  The honourable member for Mersey.

Water and Sewerage Reform Transition Project - 1 April 2008

[2.41 p.m.]

Ms FORREST (Question) - Mr President, my question is to the honourable Treasurer.  With regard to the proposed water and sewerage reform transition project, the business plan proposes four common members for each of the three individual companies.  How does this sit under Corporations Law?

Mr AIRD - Mr President, there are different models to be adopted in different company structures.  The proposed legislation in terms of the model is unique.  It relates to the particular circumstances which pertain to Tasmania.  It is about trying to get a level of governance which is going to achieve the long-term State strategic interests, while at the same time dealing with local issues and making sure that the local input about these issues is going to be well represented on these boards.  The proposed governance, the fact that local government is still going to own and in effect operate the water and sewerage infrastructure in this State, is to me a wonderful compromise.  Local government are still going to own the assets  and are going to be appointing the people to sit on these boards.  Hopefully there will be a degree of involvement from the State to ensure that the strategic issues we see can be factored in and the boards themselves, wherever the people come from, need to be expertise based.  I think that is a major breakthrough.  The proposed governance of the boards is going to allow for consistent decision-making across all three regions, having an eye to the strategic interests of the State.  This needs to be unique because it needs to deal with the Tasmanian circumstance, and I think it is a good outcome for the development of water and sewerage infrastructure in the State.

Ms Forrest - So it sits under Corporations Law in what way?  That was the question.

Mr AIRD - In terms of the actual governance, Corporations Law would allow for a range of models.  In any event, the company structure will be established by legislation.  It will have effect as a proper legal entity; it will have the powers and responsibilities.  I do not think there will be much argument in terms of the level of governance.

Mr PRESIDENT - The honourable member for Western Tiers, currently Rowallan.

Patient Travel Assistance Scheme - 1 April 2008

Ms FORREST asked a question of the Leader of Government Business in the Legislative Council -

With regard to patient travel assistance and access to health services not provided locally -

(1)   What is the current status of the review of the Patient Travel Assistance Scheme?

(2)   When is it expected that recommendations from the review will be publicly available?

(3)   What priority actions has the Government taken to address the patient transport issues on the north-west coast, particularly the far north-west and west coast regions, as identified in the Clinical Services Plan and the Primary Health Plan, in order to facilitate access to health services and specialist services not available locally?

(4)   Will patients undergoing day-surgery procedures and attending specialist consultations, who are not eligible for a contribution toward accommodation costs when they are unable to return home the same day, such as patients from King Island travelling to Tasmania with limited air services to return home, be given consideration and assisted with costs of accessing health services not available on King Island?

(5)   In view of the significant increases in fuel costs, will the rebate provided to patients who provide their own transport to health services outside their local region be increased to fully reflect the financial cost of accessing health services for those people living in rural and remote regions of Tasmania.

Mr PARKINSON replied -

(1)   Implementation of the Clinical Services Plan includes a project to review transport and accommodation.  A transport and accommodation review working party consisting of representatives from Acute Health Services, Community Health Services and Department of Infrastructure, Energy and Resources is leading this project.

The working party is currently reviewing the existing forms of transportation and existing financial assistance schemes in order to improve the accessibility to health services and alleviate patients' travel costs.

The first of several PTAS review workshops was held on 7 February 2008 at the Launceston General Hospital.  The findings and recommendations of the Senate inquiry were discussed.  The recommendations from these PTAS review workshops will provide information to the Tasmania's Health Plan, Transport and Accommodation Project team and assist in the development of the new PTAS policy for Tasmania that will ensure PTAS is administered equitably, efficiently and effectively and provides reasonable assistance to patients and their carers.

(2)   It is anticipated that the PTAS Review under the Transport and Accommodation Project will be completed in mid-2008.

(3)   As you will be aware from Tasmania's Health Plan, transport was identified as a vital component in accessing health services.  The Transport and Accommodation Project is a statewide project focusing on:

·            Developing a better statewide coordinated transport system which involves consultants working with department staff to develop the overall strategic plan of a statewide ambulance and health transport division.  This will focus on a coordinated approach of all transport to give patients better access to medical services in Tasmania.

·            Non-urgent patient transport is being centralised under one administrative centre with staff and vehicles maintained in the north, north-west and south.

·            Strengthening community transport where a stocktake is being undertaken to map existing services in order to identify the gaps.  Group stakeholder consultations will take place in the north and north-west soon.  Consultations have already been undertaken on the east coast.  Individual consultations in the north and north-west have already been undertaken.

·            PTAS has recently undertaken a review in response to the Senate review.  This report is being finalised and contains proposals for changes to the program.

·            Exploring the options of suitable and affordable patient and carer accommodation include holding public forums for accommodation providers, non-government organisations and charities to discuss the various options in the near future.  The proposed forums will be held in Hobart and Burnie in the first instance.

Stakeholder consultations with non-government organisations involved in the provision of transport and accommodation services are ongoing.

(4)   King Island residents are eligible for PTAS if they cannot access specialist treatment locally.  Accommodation reimbursement is provided to those who are unable to return home on the same day due to limited air services to King Island.

(5)   The Government understands that the rising cost of fuel is an ongoing concern to all and the level of PTAS reimbursement for persons driving their vehicle to access specialist medical care has been increased from 1 July 2006.  The rate was increased from 10 cents per kilometre to 13 cents per kilometre, which brings Tasmania into line with most mainland States.  Although several States pay a slightly higher travel rate, the PTAS distance criterion of 75 kilometres in Tasmania enables the petrol allowance to be paid over shorter distances.  Other States apply a distance criterion of between 100 to 200 kilometres each way before the patient is eligible for reimbursement.

Greenhouse Gas Emissions - 6 March 2008

[2.40 p.m.]

Ms FORREST (Question) - My question is to the honourable Leader.  With the release of the report by independent economist, Professor Ross Garnaut, clearly identifying the urgency of addressing the significant and important issue of climate change, firstly, what are the current baseline levels of annual greenhouse gas emissions within Tasmania; secondly, which industries or groups are the principal emitters and what level of annual greenhouse gas emissions are currently emitted by each of these industries or groups and, thirdly, does the Tasmanian Government accept baseline data provided in the answers to the first and second questions as an accurate representation of current annual greenhouse gas emissions within Tasmania and, if not, why not?

Mr PARKINSON - I thank the honourable member for her question.  One:  the most recent data on greenhouse gas emissions for Tasmania are published by the Australian Greenhouse Office for 2005.  Tasmania's total emissions were 10.977 million tonnes.

Two:  the major sources of CO₂ equivalent emissions in 2005 were (a) land use, land use change and forestry, 2.991 million tonnes; (b) transport, 1.774 million tonnes; (c) agriculture, 2.24 million tonnes; (d) industrial processes, 1.125 million tonnes; and (e) stationary energy, 1.958 million tonnes.

Three:  the Tasmanian Government accepts the baseline data as reported in the Australian National Greenhouse Gas accounts as the best information available for 2005.  Information on emissions for 2008 is not available.  Emission profiles have inevitably changed but we will need to await the collation and verification of data for years later than 2005.

Economic Development - West Report - 19 November 2009

[2.47 p.m.]

Ms FORREST (Question) - Madam President, my question is to the Treasurer.  It is not about land tax.  Treasurer, in the recent report released by Professor Jonathan West looking at innovation strategies for Tasmania and a new vision for economic development, he makes the following statements:

'An irrigation system on the scale warranted' -

he is referring to the billions of dollars we are spending on water infrastructure in the State -

'would require a coherent and coordinated approach, which considers Tasmania's water assets as a whole, and in their environmental context.'

He further goes on to say:

'To meet these needs an independent assessment and approval process would be required.  Tasmanians must be convinced that every individual project both meets the highest standards of environmental and economic scrutiny, but also that it be seen to do so.  We must design and implement a scrutiny process in which all Tasmanians - particularly those whose overriding priority is environmental protection - can have confidence.'

As Treasurer and Minister for Economic Development, and I also understand you have an interest in the innovation area, will you ensure that such an independent assessment and appeal process will be undertaken?

Mr AIRD - We actually have a process in place now in terms of mapping out irrigation programs and dams, and I have not seen too many criticims of the existing process.  I know the Meander Dam caused some concern to conservation groups but -

Ms Thorp - The spotted quoll.

Mr AIRD - I do not think it has proved to be a problem, or has it, since the area has been inundated?  I think Jonathan West's paper is a very useful document because it allows us to discuss various aspects of it and the Government will be looking at that and other policy from other areas.  I think that just because it is in the report, it does not necessarily mean that it will become government policy.  That needs to be well understood.

Ms Forrest - An independent assessment and approvals process, that's what he's saying.

Mr AIRD - We have a process now in place which, I think, satisfies that test but I am happy to talk to Professor West about that.  However, as far as I can see, there have not been too many complaints about the existing process.

Land Tax -19 November 2009

[2.45 p.m.]

Ms FORREST (Question) - Madam President, my question is to the Treasurer.  Treasurer, following up my questions yesterday about land tax, can you advise us of the date when all land tax requests for payment will finally be posted out and then on that date we can then ask a button to be pressed to give us a quantum of the entire expected revenue for land tax for this financial year?

Mr Dean - He is thinking about it.  I can see the wheels turning.

Mr AIRD - Thank you, honourable member, for your question.  I realise now if you want any good press in politics, just announce your retirement.  I am tempted to announce my retirement just to see - it is like some people who fantasise about being at their own funeral when they see their own death notices and see what people say about them before they die.  In politics I reckon I should say 'I am going to retire' and then see what people say, then just tell them, 'No, I've fooled you, I'm going to keep on going'.

Mr Wilkinson - You will get a bit of press if you say you are going to retire land tax.

Mr AIRD - I noticed there is a political party that actually wants to extirpate land tax and I would find that a very challenging task, to wipe $90 million of our revenues away.

Ms Forrest - So it is $90 million, is it, $90 million this year?

Mr AIRD - Land tax?

Ms Forrest - Yes.

Madam PRESIDENT - I think the question was about dates or times, pushing buttons.

Mr AIRD - Of course it is the question and I am just getting to the answer.  The answer is April, although I do not know what actual day.

Irrigation - Water Availability - 19 November 2009

Ms FORREST asked a question of the Leader of Government Business in the Legislative Council -

With regard to the water availability for irrigation in Tasmania -

(1)   What quantity of water is available from publicly owned facilities including facilities such as the Craigbourne and Meander dams?

(2)   What quantity of water is contained in private storages?

(3)   What quantity of water is extracted from rivers and streams?

(4)   What quantity of water is extracted from bores and other underground sources?

(5)   What percentage of irrigation projects and water used for irrigation is privately funded?

Answer:

(1)   The following provides the current allocations for publicly-owned entities.  These relate to water held in storage in Craigbourne Dam, Meander Dam, Lake Leake, Tooms Lake and river systems.  It is difficult to separate between agricultural and non-agricultural uses in most areas.

For example, town water for Deloraine comes from the Meander River below the dam, but there is no specific allocation in the dam for town water. The town water is accessed via releases from the dam, which cover the environment and stock and domestic releases.  This equates to at least 11 000 ml of the 54 000 ml storage capacity.

Clyde Water Trust                                      Irrigation             10 000.00              Direct

Clyde Water Trust                                      Irrigation               5 000.00              Storage

Clyde Water Trust                                      Town Water          5 000.00              Storage

Total (ml):                          20 000.00

Macquarie Water Trust                               Irrigation             25 000.00              Storage

Total (ml):                          25 000.00

Elizabeth Water Trust                                 Irrigation             27 500.00              Storage

Total (ml):                          27 500.00

Elizabeth Macquarie Irrigation Trust          Irrigation               3 369.00              Direct

Elizabeth Macquarie Irrigation Trust          Irrigation               5 471.00              Direct

Elizabeth Macquarie Irrigation Trust          Irrigation               5 711.00              Direct

Elizabeth Macquarie Irrigation Trust          Irrigation                    90.00              Direct

Elizabeth Macquarie Irrigation Trust          Irrigation               4 460.00              Direct

Elizabeth Macquarie Irrigation Trust          Irrigation               4 549.00              Direct

Total (ml):                          23 650.00

Rivers & Water Supply Commission          Meander Dam     43 000.00              Storage

Rivers & Water Supply Commission          Town Water             340.00            Storage

Rivers & Water Supply Commission          Town Water             350.00            Storage

Rivers & Water Supply Commission          Irrigation             12 500.00            Storage

Total (ml):                           56 190.00

Forthside Combined Irrigation Trust          Irrigation                  900.00            Direct

Total (ml):                                900.00

Ben Lomond Water                                Town Water            30 000.00            Storage

Cradle Mountain Water                          Town Water            40 000.00            Storage

Southern Water                                       Town Water          356 000.00            Storage

(2)   Some indication of this is available through the records of storage allocations held by the department.  This reflects the amount of water able to be taken into storages usually during the winter period.  The great majority of these storages would be private and used for agricultural purposes, so this provides a reasonable estimate of the total water available in private storages.

There is a total of 338 000 ml currently held as storage allocations for the purpose of irrigation; 93 300 ml held as storage allocations for town water; and some 65 000 ml of storage for other purposes, including stock/domestic and commercial use.

(3)   Due to the limited current extent of water metering, there is no comprehensive data available of the amount of water extracted from rivers and streams.  The data provided in answer (1) above shows the total amount allocated annually, which could potentially be extracted.

(4)   The department has recently completed a preliminary modelling exercise of 21 key groundwater aquifers in the State.  This provides information on the water budgets of these groundwater systems and will form the basis for further development of the models and for management of the groundwater.

There is currently no regulation of groundwater use in terms of allocation and licensing, so there is little information available on current use for either agricultural or other uses.  Sustainable yields have not yet been determined for the groundwater systems in the State, although estimates have been made of the total water held in some of the systems.

It is anticipated that groundwater allocation and licensing will be introduced in some areas within the next two or three years, based on the levels of groundwater development in the areas.  The first areas where this will occur will be in the Sassafras-Wesley Vale area and the north-west of the State.

(5)   Under the proposed arrangements for the Irrigation Development Board schemes, the funding for the projects will be divided between public and private funds, not based on a predetermined share, but on a set value per ml.  This will mean some schemes are largely privately funded, while others will require up to 50 per cent of the capital cost to be funded using public funds.

Irrigation Capacity - 19 November 2009

Ms FORREST asked a question of the Leader of Government Business in the Legislative Council -

The Department of Primary Industries, Parks, Water and Environment web site states -

'By 2015 Tasmania will need an additional 250 000 megalitres - ml - of irrigation water per year to underpin projected growth in agriculture and to improve the resilience of the industry in the face of drought and climate change.  This represents around a 50% increase on existing irrigation supplies'.

Regarding the existing irrigation capacity and the future need identified -

(1)   What is the latest year for which data is available to substantiate existing irrigation supplies related to agricultural and non-agricultural use?

(2)   How much water is contained in the existing surface water supplies for each irrigation management area separated between agricultural and non-agricultural uses?  (The term 'irrigation management area' is as per the May 2001 report Water Availability in Tasmania.  If alternative classifications now apply, then as per the new classifications).

(3)   How much water exists in ground-water supplies for each irrigation management area separated between agricultural and non-agricultural uses?

(4)   List existing irrigation supplies available from each publicly owned facility - in megalitres - including those managed privately; for example, Craigbourne Dam, Cressy-Longford, separated between agricultural and non-agricultural uses.

(5)   (a)     What is the total water availability in privately owned storage facilities with regard to agricultural use; and

(b)    what is the area - in hectares - serviced by the existing irrigation supplies?

(6)   With regard to the projected growth in agriculture, detail the base figures used on a per crop basis - dollars of crop value plus hectares used for each crop.

(7)   List the projected - 2015 - amounts for each crop, in constant dollar terms and hectares used.

Answer:

(1)        The department has a database - Water Information Management System -WIMS - which contains records of all water licences, the allocation(s) endorsed on the licence, the time period during which the water may be taken and the surety levels of the allocation.  This data reflects the current situation in regard to allocation of water, but does not indicate how much water is actually available to be taken in any one year.

The department does not collect records on annual supply levels as most of the annual water use is taken directly from the river systems.

The following table shows the amounts allocated in megalitres - ml or millions of litres - for different purposes, at 26 October 2009.

Purpose                                    Period_Amount (ml)

Irrigation                                                 615 959.03

Town water                                             489 443.40

Aquaculture                                            420 319.81

Commercial                                             147 554.51

Hydro power                                             60 315.60

Stock & domestic                                     14 682.08

Recreation                                                   9 374.70

Aesthetic                                                     3 827.97

Firefighting                                                    381.25

Grand Total 1 761 858.35

(2)   DPIPWE does not hold information about how much water is contained in surface water supplies.  These amounts vary continuously in response to rainfall, runoff, groundwater discharge, evapotranspiration and extraction.

The department has catchment hydrological models which provide information on how much water can be made available from each catchment at specific levels of reliability over an annual or other period.  These provide the basis to determine how much water may be allocated in each catchment.

The department will be utilising newly developed hydrological models to recalculate the water available for annual allocation in each catchment and sub-catchment, and how much has already been allocated.  This information is expected to be available in late 2010.

(3)   The department has recently completed a preliminary modelling exercise of 21 key groundwater aquifers in the State.  This provides information on the water budgets of these groundwater systems and will form the basis for further development of the models and for management of the groundwater.

There is currently no regulation of groundwater use in terms of allocation and licensing, so there is little information available on current use for either agricultural or other uses.  Sustainable yields have not yet been determined for the groundwater systems in the State, although estimates have been made of the total water held in some of the systems.

It is anticipated that groundwater allocation and licensing will be introduced in some areas within the next two or three years, based on the levels of groundwater development in the areas.  The first areas where this will occur will be in the Sassafras/Wesley Vale area and the north-west of the State.

(4)   The following provides the current allocations for publicly-owned entities.  These relate to water held in storage in Craigbourne Dam, Meander Dam, Lake Leake, Tooms Lake and river systems.  It is difficult to separate between agricultural and non-agricultural uses in most areas.

For example, town water for Deloraine comes from the Meander River below the dam, but there is no specific allocation in the dam for town water.  The town water is accessed via releases from the dam, which cover the environment and stock and domestic releases.  This equates to at least 11 000 ml of the 54 000 ml storage capacity.

Clyde Water Trust                        Irrigation             10 000.00              Direct

Clyde Water Trust                        Irrigation             5 000.00                Storage

Clyde Water Trust                        Town Water        5 000.00                Storage

Total (ml):          20 000.00

Macquarie Water Trust                 Irrigation             25 000.00              Storage

Total (ml):          25 000.00

Elizabeth Water Trust                   Irrigation             27 500.00              Storage

Total (ml):          27 500.00

Elizabeth Macquarie Irrigation Trust        Irrigation           3 369.00      Direct

Elizabeth Macquarie Irrigation Trust        Irrigation           5 471.00      Direct

Elizabeth Macquarie Irrigation Trust        Irrigation           5 711.00      Direct

Elizabeth Macquarie Irrigation Trust        Irrigation                90.00      Direct

Elizabeth Macquarie Irrigation Trust        Irrigation           4 460.00      Direct

Elizabeth Macquarie Irrigation Trust        Irrigation           4 549.00      Direct

Total (ml):          23 650.00

Rivers & Water Supply Commission        Meander Dam   43 000.00        Storage

Rivers & Water Supply Commission        Town Water           340.00        Storage

Rivers & Water Supply Commission        Town Water           350.00        Storage

Rivers & Water Supply Commission        Irrigation           12 500.00        Storage

Total (ml) 56 190.00

Forthside Combined Irrigation Trust        Irrigation                900.00        Direct

Total (ml): 900.00

Ben Lomond Water                        Town Water                30 000.00        Storage

Cradle Mountain Water                  Town Water                40 000.00        Storage

Southern Water                               Town Water              356 000.00        Storage

(5)   Some indication of this is available through the records of storage allocations held by the department.  This reflects the amount of water able to be taken into storages usually during the winter period.  The great majority of these storages would be private and used for agricultural purposes, so this provides a reasonable estimate of the total water available in private storages.

There is a total of 338 000 ml currently held as storage allocations for the purpose of irrigation; 93 300 ml held as storage allocations for town water; and some 65 000 ml of storage for other purposes, including stock/domestic and commercial use.

No information is available on the areas irrigated by existing supplies, as farmers are not required to provide this information when applying for dam permits or water licences.  It is worth noting that industry figures suggest irrigation rates of between 2 to 7 ml per hectare annually, depending on what is being irrigated.

(6)   Attachment 1 shows current values of gross margins for all the main irrigated crops in Tasmania.  This shows the gross margin per hectare and per ml of water used.

(7)   The department does not have information on these forecasts.

Land Tax q2 - 18 November 2009

[3.00 p.m.]

Ms FORREST (Question) - My question is to the Treasurer.  Treasurer the 2004-05 and 2007-08 land tax estimates were lower by 29 per cent on both years when we got the final results so potentially there is no reason it cannot be that high in the future.  You also stated in a recent debate, and previous question time, that businesses should accurately budget and plan for increases in land tax to enable them to mitigate the risks of a massive increase in land tax payments, in line with increasing valuations.  If Treasury can be out by 29 per cent in two years, as well as other varying figures over other years when using similar methodology, is it reasonable to say that business should be able to rightly predict when Treasury is seen to be 29 per cent out on at least two occasions?

Mr AIRD - I thank the member for her question.  As I indicated, there are variations against budget amounts and particularly in terms of the collections in this area in terms of tax.  Some businesses have developed models where they have anticipated that there is going to be a revaluation within the cycle.  They would know by their market, the market value of their properties and compare it with what occurred six years ago.

Ms Forrest - And they were closer than 29 per cent off the mark?

Mr AIRD - You would think that there would be, until you go case by case.  If you go through the valuation methodology, some businesses obviously have had greater increases in valuation than others.  Therefore, it would be by a case-by-case business approach, but generally you cannot transpose a variation in terms of the overall collection of land tax to an individual premise, in time to build a business model.

I know of businesses which  have factored this in and have prepared for this.  They had anticipated their liability because they understood their property and understood their business.  Some have not, for no reason other than some people have bought businesses or buildings towards the end of the cycle and therefore might not have factored in the land tax liability so they might have seen an unexpected spike in their business.  Having said that -

Ms Forrest - Even if they have mitigated because 29 per cent out -

Mr AIRD - In answer to the honourable member, you cannot transpose that variation to an individual property.

Ms Forrest - No, I am not, but I am saying, for example, it could be worse.

Mr AIRD - You cannot do that.  As a business you have to take your own business example to establish what the tax liability is going to be into the future.

Land Tax - 18 November 2009

[2.50 p.m.]

Ms FORREST (Question) - Madam President, my question is to the Treasurer.  Treasurer, your colleague, the Minister for Human Services, suggests that when the expected revenue assessment is made for the land tax the valuation increases are taken into consideration and hence the $90 million figure.  Having asked if you agree that would be the case, that that is considered in your expectation, if that is the case, would the same expectation have been part of the assessment of expected revenue in 2004-05 and 2007-08?.  I will leave it at that for now.  I may have a supplementary after that.

Mr AIRD - The honourable member is getting close to the question that she needs to ask about this.  I am going to anticipate it.  With regard to the issue of land tax, there are variations and you can only have a predictive indication of revenues based on some historic data, some forecast data, but until you actually have the valuations you cannot be pinpoint perfect on it.

Ms Forrest - They are considered, though?

Mr AIRD - It is all factored in; there is a range of things factored in here.  There is no exact methodology in terms of saying this is what is going to occur in, dare I say it, Hobart municipality in terms of valuations.  But you could look and see what has occurred in the past - some historical data and a range of increases.  If you are alluding to the fact that there have been variations between the forecast amounts in the past and the revenues received - and that is your supplementary, isn't it?

Ms Forrest - We're getting there.  Is the methodology the same each year?

Mr AIRD - It is true that there can be variations.  I say it quite often, there are variations in revenue and there are variations in expenditure.  That happens.

Ms Forrest - Is the same methodology used each year?

Mr AIRD - I think that the estimate that $90 million would be raised from land tax would be based on the municipalities being involved in that exercise.  There have been variations in the past to the budgeted amount.  I indicated to the member for Windermere that we had budgeted for $90 million and there was a forecast of a slight increase beyond that.  If there was a forecast that was greater than that in terms of a marked increase then there would be a case to put.

Ms Forrest - Is the same methodology used each year?

Mr AIRD - It would be a similar methodology.

Land Tax Accounts q3 - 18 November 2009

[2.42 p.m.]

Ms FORREST (Question) - Madam President, my question is to the honourable Treasurer.  Treasurer, on what date is it expected that all land tax accounts would have been sent out such that such a figure is the total amount expected for this financial year,  a button can be pressed and a figure can be known?

Mr AIRD - I thank the honourable member for her question.  My recollection is that I think that the last of the bills are sent out by March and that it will be -

Ms Forrest - You're talking about the interim - I'm talking about the first bill that has the total number on it and you can pay in instalments if you pay on time.  You're  not talking about the last of those instalment bills?

Mr AIRD - No, I think the honourable member needs to understand that the bills are sent out over a staggered period of time; they always have been.  I need to clarify this but my recall is that the last bills go out in about March.

Land Tax Accounts q2 - 18 November 2009

[2.36 p.m.]

Ms FORREST (Question) - Madam President, the Treasurer did not answer the question.  The question was, as land tax bills have been sent out, how difficult is it to total up the number?  Surely you can press a button and collate those figures and it would spit out a number at the end that says this is the amount that the land tax accounts that have been sent out amounts to, and at the bottom of that page there would be a number.  What I am asking for is that number.  If you cannot provide the number, why is it so difficult?

Mr AIRD - I do not know if it helps the honourable member but not all the bills have been sent out.  The bills are not all sent out at the one time.

Mr Harriss - The first instalment is due.

Ms Forrest - Yes, the first instalment is overdue if you have not paid it.

Mr AIRD - The land tax bills have always gone out in a staggered approach over a number of months.  They have always been like that and my understanding is that not all the bills have been sent out.

Land Tax Accounts - 18 November 2009

[2.35 p.m.]

Ms FORREST (Question) - Madam President, my question is to the honourable Treasurer.  Treasurer, all of us would be aware that land tax bills have all been sent out now and so I ask how difficult is it to total up the number of the total amount due when these bills have been sent out, and can you explain why that would be a problem?  If not, can you provide that total figure that is expected for this year?

Mr Harriss - Press a button.

Ms FORREST - Yes, press a button and get the figure for this year.

Mr AIRD - I thank the honourable member for her question.  The information that I have is that in terms of the forecast, the amount of $90 million, there may be some increase beyond that, but that it is at the margins, not a windfall in terms of any further income beyond the $90 million.

Ms Forrest -  Surely you know the figure.

Mr AIRD - In terms of the forecast revenue, it will be in the midyear report.

Hobart International Airport - Divestment Costs - 17 November 2009

Ms FORREST asked a question of the Treasurer -

Having identified divestment costs of $5 419 million connected with the Hobart International Airport Pty Ltd, what were the dates, payee details and amounts which made up the total $5 419 million amount?

Answer:

The attached table shows the details requested.

HIAPL Divestment Costs

Preliminary Outcomes Report - 17 November 2009

Ms FORREST asked a question of the Treasurer -

With regard to information provided in the Preliminary Outcomes Report 2008-09 -

(1)   Is it the case that had it not been for the increases in long service leave provisions in Health and Human Services and Education, the different treatment of Mersey hospital employees and the overruns in Justice, DPIW and DIER, employee expenses in the general government sector would have been less than the budgeted figure?

(2)   (a)     What explanation is there for an increase of $56 million from a starting point of $153 million in long service leave provisions; and

(b)    if this increase was associated with an increase in employees on higher salaries, what were the categories of employees who received above budgeted salary increases and why were such increases necessary or appropriate in a time of severe economic and fiscal restraint?

(3)   The report notes that a $316 million increase in the liability for unfunded superannuation occurred as a result of an actuarial reassessment of the liability.

(a)     Is it the case that a rise in salaries of plan members will also affect the actuarial calculation?

(b)    How much of the $316 million increase is due to -

(i)       A reduction in plan assets, or the effects of the GFC?

(ii)      Different assumed earnings rates?

(iii)     Increases in salaries of plan members?

(4)   The report states that 'gain/(loss) on sale of non-financial assets is anticipated to result in a loss of $5 million, $13 million less than the original budget estimate of a $8 million gain.  The result is primarily due to a loss on sale of non-financial assets of $10 million for the Department of Primary Industries and Water.'

(a)     What was the asset that was sold at a loss?

(b)    What was the cost of the asset; and

(c)     what was the sale price?

(5)   The report states - 'Other gains/(losses) are anticipated to result in a loss of $19 million, $10 million less than the original budget estimate of a $9 million loss.  The preliminary result is due to the impairment of infrastructure assets by Finance-General of $30 million partially offset by assets acquired below fair value by the Department of Environment, Parks, Heritage and the Arts of $16 million.'

(a)     What infrastructure assets were held by Finance-General?

(b)    What were the assets acquired at below fair value by DEPHA?

(6)   The report states that 'Revaluations of non-financial assets for 2008-09 is anticipated to be a gain of $87 million, a decrease of $159 million from the original budget estimate of a $246 million gain.  This outcome primarily reflects an opening balance adjustment of $123 million to Infrastructure assets held by the Department of Infrastructure, Energy and Resources.'

What does the opening balance adjustment relate to?

(7)   The report states that 'the Department of Infrastructure, Energy and Resources estimated purchases of non-financial assets is $41 million below the original budget estimate.  The original budget estimate for capital purchases included maintenance expenditure of $38 million which has been classified to supplies and consumables for the preliminary outcome.'

(a)     What were the items that were reclassified?

(b)    Why were funds earmarked for capital expenditure, including maintenance, reclassified as supplies and consumables?

Answer:

(1)   Commentary in the Preliminary Outcomes Report focuses on the material variations that had a significant impact on the general government sector.  To provide commentary on all variances reported by agencies that impact on line items would be onerous, impractical and would not highlight the key responsible factors.

Excluding the factors outlined in the report, employee expenses would still be above the original budget estimate.  This is due to a number of smaller variations in salaries and wages, long service leave, and other employee expenses across a number of agencies.

(2)   (a)     The increase in the liability for employee entitlements is due to salary and wage growth and to movements in the discount rate factors used to value long-term liabilities, such as long service leave.

(b)    The liability for employee entitlements was consistent with the original budget estimate of $440 million.

(3)   (a)     The actuarial valuation methodology is complex, taking into account a large number of factors impacting in both the reporting year and each subsequent year of the liability.  Therefore, salary increases of scheme members during the reporting year, whether by promotion or wage agreement outcomes, is only one of a number of factors contributing to the increase in the actuarial valuation of the superannuation liability.

(b)    (i)       There was a $90 million reduction in scheme assets due to the effects of the global financial crisis.

(ii)      There was no change in the assumed earning rate.

(iii)     It is not possible to accurately isolate the impact of salary increases on the superannuation liability.  However, it is estimated that salary increases contributed less than $12 million, or 3.8 per cent, of the $316 million increase.

The 316 million increase in the unfunded superannuation liability is comprised of $145 million employer service cost - notional cost of employer-funded benefits accruing during the year; a loss in asset values of $90 million; an increase of $494 million due to the decrease in the discount rate - from 6.5 per cent to 5.7 per cent; an increase of $143 million due to actuarial losses; an offsetting decrease of $556 million due to a change in the actuarial methodology in relation to contributions tax.

(4)   The variance in the gain/(loss) on sale of non-financial assets was primarily due to various sales of crown land and the write-off of land and buildings that are no longer owned by the department.  Specific details regarding asset disposals are not available at the time of preparing the Preliminary Outcomes Report.

(5)   (a)     The infrastructure asset held by Finance-General was the optic fibre cable. During 2008-09, the optic fibre cable was assessed as being impaired.  The impairment arose as a result of the Strategic Partnership Agreement between Aurora Energy Pty Ltd and the Government where the agreement provides Aurora with exclusive access to the cable for no financial return to Finance-General.  An annual licence fee and a percentage of gross revenue from commercial services using the network are payable to the Department of Premier and Cabinet.  The cable will therefore not provide future economic benefits to Finance-General.  This has resulted in the recognition of an impairment loss for the full value of the asset.

(b)    The assets acquired at below fair value by the former Department of Environment, Parks, Heritage and the Arts, include gazettal of land under the Nature Conservation Act 2002, a herbarium collection transferred from the Australian Government, the transfer of the Female Factory site and a bequest of land and buildings.

(6)   The Department of Infrastructure, Energy and Resources revised the balance of infrastructure assets in its audited 2007-08 financial statements after the audited 2007-08 general government financial statements were finalised.

An adjustment was therefore made to the general government opening balance for infrastructure assets to reflect the final balance recorded by DIER.

(7)   (a)     The original budget estimate was prepared on the assumption that all expenditure relating to road and rail infrastructure would be capital in nature.  However, some road and rail expenditure undertaken during 2008-09 was classified as maintenance and therefore should not be capitalised.

(b)    The change in classification is required because the expenditure classification must comply with the Australian Accounting Standards.  The classification of expenditure as capital or maintenance will have no impact on the fiscal balance.

Tasmanian Irrigation Development Board q2 - 16 November 2009

Ms FORREST asked a question of the Leader of Government Business in the Legislative Council -

With regard to the $400 million combined State and Federal Government commitment to progress large-scale irrigation development in the State under the aegis of the Tasmanian Irrigation Development Board -TIDB - which sees $180 million of State money -

(1)   Will the majority of the extra $180 million be received from farmers through reimbursement of the State Government by these farmers?

(2)   If not -

(a)     What proportion of the $180 million will represent reimbursements?

(b)    What proportion of this funding commitment will the State Government be required to meet; and

(c)     where will this funding be sourced?

Answer:

(1)   There is not a precisely definitive cost total for all the TIDB schemes.  The Australian and Tasmanian governments have set aside a total of $220 million for regionally significant irrigation development in Tasmania.  This amount is primarily for actual scheme development but also includes some directly related matters such as the CSIRO's Sustainable Yields project.

All scheme construction costs over and above the Tasmanian and Australian government contribution will be recovered from scheme beneficiaries through the purchase of water entitlements.

(2)   See (1) above.

Priority Irrigation Projects - 16 November 2009

Ms FORREST asked a question of the Leader of Government Business in the Legislative Council -

With regard to the proposed irrigation plans for Tasmania -

(1)   What were the precise terms of the brief given to those involved in the project that led to the identification of 12 priority irrigation projects?

(2)   In the search for priority sites, were there any constraints relating to the investigation of possible sites with regard to -

(a)     geographic location;

(b)    megalitres to be delivered;

(c)     capital costs;

(d)    running costs;

(e)     reimbursements required by users; and

(f)     salinity issues?

(3)   With the Government's acknowledgement that the irrigation needs of the north-west are different from the Midlands, did the Government investigate all possible alternatives for increasing the irrigation potential of the north-west - excluding Deloraine and areas to the east?

(4)   Did the engineering options to maximise the potential of the north-west extend beyond the limited solution of pumps and pipelines?

(5)   Will the option of creating regional storage dams in the north-west to collect winter run-off for supplementing existing irrigation channels in summer be considered?

Answer:

(1)   The genesis of the current irrigation program was the Water Development Plan for Tasmania which provided a strategic framework for sustainable water use and development.

The initial Water Development Plan funding was largely used to establish the viability or otherwise of a number of water development proposals - including the Meander Dam -  in partnership with stakeholders and also to streamline processes for providing dam works permits and water licences, to undertake the project to develop a strategy for the conservation of key freshwater ecosystem values and to improve water quality monitoring infrastructure.

Through its consultation with stakeholders, the Tasmanian Government recognised that the greatest impediment to private investment in water development was the provision of risk capital.  Initially the focus was to progress larger-scale proposals through the statutory approval stages.  A recognition that regionally significant irrigation development is, in most cases, beyond the resources of farmers alone, resulted in the establishment of the Tasmanian Irrigation Development Board in 2008 to realise the schemes through public-private partnerships.  Carriage of 11 prospective proposals passed to the TIDB which subsequently agreed to a twelfth - expansion of irrigation in the south-east.

The State Government required that the Water Development Plan and all subsequent irrigation investigations be conducted on a scientific basis with the considerable involvement of primary producers to ensure that both local knowledge of water development opportunities and the economic fundamentals of the sector informed decision making.

(2)   (a) - (f)

The focus throughout has been to firstly determine the socioeconomic, engineering and environmental feasibility of proposals and then to take the most feasible proposals forward.  The process is at arm's length from government.  A significant proportion of the initial proposals proved not to be feasible for either economic or environmental reasons or from an engineering point of view.

Provided that feasibility on the above grounds is established, there have been no constraints placed by the Tasmanian Government regarding geographic location.

There are no artificial criteria relating to the megalitres to be delivered by individual schemes.  In total, the Tasmanian Government intends that the projects capture 150 000 ML - 200 000ML needed to underpin growth prospects.  The smallest of the TIDB schemes is Headquarters Road community dam of approximately 2 000 ML.  The largest under consideration, but still at the pre-feasibility stage, is a network of dams in the north-east which may total 50 000 ML - 70 000 ML.

The capital and running costs - and the closely related issue of user reimbursement - are all integral to a project's financial feasibility.  No constraint has been imposed other than the fact of feasibility and the requirement that scheme beneficiaries contribute to the capital cost of the project and fully fund its ongoing operation.

On this matter it is important to appreciate that each scheme stands alone on its economic merits as a public-private partnership.  TIDB schemes are not 100 per cent publicly-provided infrastructure designed with excess capacity in the expectation they will answer future community demand.  Each scheme must be a financeable project now, sufficiently attractive to earn producers' investment commitments before construction, designed to securely deliver the water subscribed to by the farmer and then operated within its built capacity.  These are market- and demand-driven projects.

Salinity clearly is a key issue which has been among the upper-most considerations throughout.  Its pre-eminence has warranted special attention.  It is a requirement that, before applying water from TIDB schemes to the land, irrigators must develop farm management plans to ensure that the consequences of irrigation are known and managed.  In particular, they must have completed the water, soil and biodiversity modules of their Property Management Plan.

The ability to irrigate water - from a TIDB scheme - on a particular site will be controlled by these farm management plans.  Those plans will limit the amount of water that can be applied to any particular site in accordance with sustainable management practices.

(3), (4) and (5)

In the north-west, the TIDB is engaged with schemes for irrigation in the Forth region - from North Motton to just west of Devonport - and in the Sassafras-Wesley Vale area just each of Devonport.  It also is advising irrigators with regard to potential in the Blythe River area.

The TIDB's brief is to work with local communities to develop cost-effective and sustainable irrigation schemes.  All options which meet these criteria are investigated regardless of whether they involve impoundments or otherwise.

Tasmanian Irrigation Development Board - 16 November 2009

Ms FORREST asked a question of the Leader of Government Business in the Legislative Council -

With reference to a question on notice to the Minister for Primary Industries and Water during Estimates on 25 June 2009 with regard to irrigation schemes being developed through the Tasmanian Irrigation Development Board - TIBD - the minister answered referring to 12 priority projects but then proceeded to describe 14 possible projects.

With regard to these projects -

(1)    Which are the 12 priority projects?

(2)    What is the budgeted capital cost for each?

(3)    How many megalitres will be delivered by each?

(4)    What is the estimated annual running costs excluding downstream distribution costs to users?

(5)    How much of these costs will be recouped from users in terms of -

(a)    capital costs; and

(b)    annual running costs?

(6)      What is the annual rainfall in each of the 12 areas including -

(a)    the long-term average?

(b)    average over the last five years?

(7)    What is the predominant soil type in each area?

(8)     What is the predominant existing agricultural activity in each area?

(9)     What irrigated crops are contemplated for each area and what would be considered the three most significant crops?

(10)   How much water is required per hectare for the three most significant crops?

(11)   What is the current State production - dollar value - and number of hectares for each of the crops noted in question (9) above?

(12)   With regard to the non-priority projects investigated by TIBD -

(a)    where are these projects; and

(b)    what stage has been reached with each of them?

(13)   Can the Government provide answers to questions (2) to (9) above specifically in respect of any project in the Circular Head district?

Answer:

(1), (2) and (3)

The priority projects comprise those which the Tasmanian Irrigation Development Board was given at its inception or has formally taken on since.  These projects seek to deliver long-term irrigation solutions.  Irrigation development is an iterative process.  Some projects - such as the upper Macquarie which formed part of the TIDB's initial brief - will not be proceeded with as the Midlands Water Scheme has been extended to service this area via Kitty's Rivulet.  The TIDB projects are -

·        Midlands Water Scheme.

Arthurs Lake pipeline to Mount Seymour - estimated capital cost, $65 million, 31 000 ML.

Pipeline extension to Lower Marshes - estimated capital cost, $23.3 million, 7 500 ML.

South Esk - estimated capital cost, $13.4 million, 9 000 ML.

·            North East dams - estimated capital cost $77 million, up to 70 000 ML.

·            Meadstone dam - estimated capital cost $27 million, up to 12 000 ML.

·            Headquarters Road dam - estimated capital cost $4.5 million, 1 980 ML.

·            South East Scheme - now including the lower Jordan - estimated capital cost being re-scoped.

·            Whitemore Irrigation Scheme - estimated capital cost $10.2 million, 5 700 ML.

·            Sassafras-Wesley Vale Irrigation Scheme - estimated capital cost $8.7 million, 7 200 ML.

·            Forth Irrigation Scheme - estimated capital cost $32.4 million, 19 000 ML.

·            Winnaleah irrigation augmentation - estimated capital cost $20 million, 5 000 ML.

·            Shannon-Clyde Scheme - estimated capital cost $20.7 million, 8 700 ML.

·            Swan River Valley - early stages of investigation.

·            Upper South Esk Dam - early stages of investigation.

(4)    The operating costs can be determined only at the late stages of scheme design.  The operating costs for Whitemore are likely to be $110 per ML.  The operating costs for Sassafras-Wesley Vale and Headquarters Road will be known shortly.  The operating cost of each of the other schemes will similarly be known as the iterative design process nears conclusion.

(5)   (a)       The TIDB schemes are constructed as public-private partnerships.  The public component comes from a pool of $220 million set aside for this purpose by the Tasmanian and Australian governments.  The private component comes from scheme users and the vehicle for their contribution is a tradable water entitlement to that scheme.  The relative amounts contributed by the community and by scheme beneficiaries will differ between schemes.  It has recently been announced that the price of a water entitlement for the Whitemore scheme is being initially offered at $1 130 per ML.  The price of a water entitlement will be known soon for the Sassafras-Wesley Vale and Headquarters Road dam.  It is a matter of historical fact that cost of water entitlements for the Meander Dam and its subsequent pipelines has been $1 100 per ML.

(5)   (b)      Annual operating costs will be fully met by water entitlement holders.  There will not be a public subsidy for operating costs.  The TIDB designs its schemes with a view to reducing operating costs where this is technically feasible, even if it means some increase in capital costs to achieve lower operating costs.

(6), (7) and (8)

The information sought in these questions, and much else, is covered in depth for each scheme.  Gathering information on land capability, soil types, land class, enterprise mix and climate occurs as part of a feasibility study when each project is in its earliest stage.

The Tasmanian Irrigation Development Board has adopted independently recommended methodology to ensure that determination of irrigation scheme viability in each case is rigorous and conservative.

The economic consultants, Marsden Jacob Associates, provided the TIDB with a methodology for socioeconomic assessment of the proposed schemes.

Each study includes a demand profile.  The demand profile is largely defined as the crop mix for which new water is to be used.  This demand forecast is broken down into all principal existing crop or pasture categories.

The conservatism of this approach is evident.  The demand forecast is based on the existing mix of agricultural activities.  Each proposed scheme must prove itself based on known activities which have a history of being conducted in the region being considered for a TIDB scheme.  In considering the impact of the proposed irrigation on expansion of the region's agricultural activity, the relative proportions which each existing activity contributes to the overall mix is maintained.

There may well be discussion in the socioeconomic report on the capability of land to support a different mix of activities.  Indeed, it is expected that the provision of irrigation water with a reliability of 95 per cent or higher will provide the security for some producers to invest in higher value uses.  However, it is important to understand that the economic case for each scheme must be made on the basis of each region's historical agricultural enterprises.

(9)      The TIDB does not seek to direct or recommend to producers how they should productively apply their water to their land.  It is a requirement that, before applying water from TIDB schemes to the land, irrigators must develop water access plans - WAPS - to ensure that the consequences of irrigation are known and managed.  In particular, they must have completed a water access plan which covers biodiversity, soil and water planning components.  The ability to irrigation water from a TIDB scheme on a particular site will be controlled by these WAPs.  The crops, pasture or other purposes to which the farmer chooses to apply the water is his or her prerogative but will be known from these plans.

(10) and (11)

See (9) above.

(12)    The TIDB does not have 'non-priority' projects.  It is progressing its long-term irrigation solutions - that is, schemes designed with a 100-year life to deliver the stated quantity with a greater than 95 per cent reliability - simultaneously rather than sequentially.  Obviously the schemes are not all at the same stage of progress as they necessarily differ in size and technical, environmental or financial complexity.

The other projects with which the TIDB has been associated include delivery of a temporary supply to the Clyde, operational readiness to implement a temporary supply to the Coal River at short notice in the event that the drought had not broken, advice to private investigators or intending irrigators in the Blythe River and in the Macquarie settlement area.

(13)    The TIDB exists to deliver regionally-significant irrigation schemes in partnership with local communities where the cost of the scheme is outside the resources of producers acting alone.  No such schemes have been proposed to the TIDB from the Circular Head region.

Land Tax - 11 November 2009

[2.49 p.m.]

Ms FORREST (Question) - Madam President, my question is to the honourable Treasurer.  He thought I was not going to ask any, but I would not like to let him down.  Treasurer, recently in the media there was some discussion about the fairness or otherwise of land tax and the way it is distributed in the State of Tasmania and paid.  It would appear from media reports that you and the Premier are at odds over whether it is a fair tax and how it is managed.  Are you at odds with the Premier in regard to the land tax in Tasmania and if there is going to be a reform, who is going to lead the charge?

Mr AIRD - I thank the honourable member for her question.  I will not prompt the honourable member again.  The Premier and I are not at odds about this.  What we have said, very clearly, is that we understand that there are issues surrounding land tax and that there have been particular cash flow pressures on some businesses that were not anticipated by those businesses.

What the Premier and I have both quite often said is that given the Henry review of taxation in Australia, we will wait and see the outcome of the review before we make any proposals relating to any taxation in Tasmania.  We have 35 per cent of our own revenues.  About 20 per cent relates to taxation and if you start peeling off bits of tax at any particular time, one of three things can happen.  You have to increase other taxes or generate other revenue, you cut back services or you go back into debt.

Ms Forrest - Or you readjust how you collect this tax in a more fair and equitable way.

Mr AIRD - But there are consequences of that.  If you adjusted the tax in any sense and wanted to get an adjustment that was neutral in its income, then that has consequences too and we have to analyse the effects of that in any system.

I take this opportunity, Madam President, to make these points.  We are the only State in Australia to have maintained our fiscal position without any new taxes and without any increases in our taxes.

Mr Dean - That is one of the problems, isn't it?

Mr AIRD - Do you think we should be increasing our taxes?

Mr Dean - You made the statement a long time ago that the Labor Government would never increase taxes.  Now you try to bring in the finances that you need by other means, which are not fair and equitable.

Ms Forrest - Like water and sewerage charges.

Mr AIRD - No, we do not get any benefit at all from the water and sewerage charges.  The financial benefit of water and sewerage goes to local government.

Mr Harriss - Higher tax; you've increased that.

Mr AIRD - That is not true.

Mr Harriss - Of course it is.

Mr AIRD - We have managed the finances in a way that is sustainable.  We have delivered a level of services that meet, in large part, community expectations and we will be addressing the issue of taxation reform in light of the Henry review.  We have provided over $200 million worth of tax cuts over the period of the Government, and $24 million of that relates to land tax.  This is a much more complex issue than I think a lot of people understand.  There is a range of other taxes too which people could be critical of.  The level of duties that we get via transactions, are they efficient and are they effective and do they deliver the right result for the Tasmanian community?

We have a very narrow tax base and I think that we have to be very cautious about diminishing our own tax base without fully understanding the consequences.

Ms Forrest - I'm  not suggesting we minimise it.

Mr AIRD - I am just saying that reform of tax can be vexed.  It is not simple and we will not be rushing to any change in policy without being fully informed by the Henry review and the data that sits behind that.

Mr Wilkinson - When will that be?

Mr AIRD - My understanding is that Henry will be delivering the report to the Commonwealth Government on Christmas Eve and we obviously then have to rely on the Commonwealth sharing that information with us.  I do not know whether that is going to be made public or not but I would imagine that at some stage it would be.  I am not in charge of the time frame for that, but obviously we are dependent upon the Federal Government to provide that information to us.

Mr Dean - Do you support aggregation, Mr Treasurer?

Madam PRESIDENT - Order.  This is not a debate.  If the member likes to get to his feet and ask a question that is the appropriate way to do it, thank you.  I will call the honourable member for Windermere if he so wishes.

Land Tax - 10 November 2009

Ms FORREST asked a question of the Treasurer -

With regard to land tax exemptions on primary production land and the requirement that a primary industry business will be conducted on this land with a 'reasonable expectation of profit' -

(1)   How is 'a reasonable expectation of profit' defined and interpreted by the State Revenue Office?

(2)   How often is the primary production exemption reviewed by the State Revenue Office?

(3)   Does the land tax exemption continue until the property is sold?

Mr AIRD replied -

In response to your questions, I am advised that -

(1)   Whether or not there is a 'reasonable expectation of profit' is one of a number of questions that the Commissioner of State Revenue considers in determining whether a business of primary production is being carried out on the land.  These questions are based on principles established by the courts over many years and include:

·        Is there a significant commercial purpose or character to the activity?

·        What is/was the intention of the landowner/land user?

·        Has the activity been conducted in a repetitive manner and on a regular basis?

·        Is the activity of the same kind and carried on in a manner that is characteristic of the industry?

·        Has the activity been organised in a businesslike and systematic manner?

·        What is the size or scale of the activity?

·        Is the activity a hobby or recreation?

The SRO will review business plans and cash flow projections and the like to determine whether there is a reasonable expectation of profit from the activity.  Other indicators will include whether the taxpayer has conducted research into the proposed activity, consulted experts or received advice on the running of the activity and the profitability of the activity before setting up the business.  It is not necessary for the primary production activities to make a profit in every year of income in order to classify the activities as a business of primary production.  A taxpayer may be considered to be carrying on a business of primary production even though he/she is making a small profit or a loss in any given year of income.

(2)   The classification of the primary production land is reviewed:

·        if the land is transferred to a new owner; or

·        where part of the land is subdivided.

The SRO also conducts regular compliance programs to ensure that primary production land is actually being used in the business of primary production.

(3)   The primary production land classification will continue until the property is sold unless the owner advises that there is a change in the usage of the land or where a review or compliance investigation reveals that the land classification is incorrect.  It should be noted that the onus is on the landowner to advise the commissioner where there has been a change of use.

Rail Service Valuations - 10 November 2009

Ms FORREST asked a question of the Treasurer -

With regard to the proposed takeover of rail services by the Government -

(1)   How many and when have valuations of the rail service been undertaken over the last two years?

(2)   (a)     Did these valuations include above- and below-line assets; and

(b)    if so, what was the breakdown?

(3)   Who undertook the valuations; and

(4)   What were the results of the valuations?

Mr AIRD replied -

A number of valuations of Pacific National Tasmania's - PNT - rail assets and business have been undertaken over the past two years by a number of parties including PNT itself, the Tasmanian Government and other potential purchasers of the business.  The Government can obviously only comment on those valuations that it has itself undertaken or commissioned.

When Asciano first put its Tasmanian rail business on the market in October 2008, the Government commissioned Mr Michael Scanlan, a rail consultant, to prepare an independent report to investigate how a potential purchaser would value the business and make an assessment of the price a potential buyer may offer for the business.  The report suggested that a share sale of the business would likely yield a price of anywhere between $10 million and $34 million depending on how a new operator intended to undertake rail services.  This valuation was for the business as a whole, including both above- and below-rail assets.

In May 2009, the Government engaged GHD, including economic consultancy partners Meyrick, to provide an independent assessment of PNT assets based on a first-hand inspection and construct a financial model of the business, including consideration of a number of revenue scenarios.  This work was originally commissioned with a view to the Government being in a position to facilitate the sale of the business from Asciano to a third party operator.

The consultants concluded that, '� given the level of government support committed to track infrastructure and the fact that the Government owns the majority of track infrastructure, value in the range of $25 million to $30 million would not be unreasonable'.  The consultants also noted that '� wider consideration of the economic value of rail to the State could see a higher valuation placed on the business by the Government'.  Again, the total value of the business includes above- and below-rail assets.

In conducting this valuation, the consultants had access to PNT's assets and data room, which included valuations of both rolling stock and below-rail assets, including independent valuations covering a range of valuation methodologies.  However, these figures cannot be released as they are subject to confidentiality arrangements entered into by the Government and Pacific National as part of the business sale agreement.

Once the new State-owned rail company is established it will need to conduct its own valuation of the business in order to comply with standard accounting practices.

Water and Sewerage Reform - 29 October 2009

[2.32 p.m.]

Ms FORREST (Question) - Madam President, my question is to the honourable Treasurer.  Treasurer, is it appropriate that a west coast company be issued with invoices for payment for sewerage services and water supply from Cradle Mountain Water to the value of approximately $10 000, despite the fact that this service is provided and maintained by that company?

Mr AIRD - I thank the honourable member for her question but I do not quite understand it.  If there is any issue relating to any invoice and the honourable member wants to bring it to my attention, I am quite happy to look into it and investigate the issue to see what has occurred.  Nothing has been brought to my notice about any invoices or payments.

Ms Forrest - I bring it to your notice now.

Mr AIRD - That is fine.  I do not know the detail of it but if you show me what has occurred, and if there has been anything amiss, then I will endeavour to communicate with the water authorities to ensure that they have best practice if, in fact, best practice has been breached.

Water and Sewerage Reform - 28 October 2009

[2.55 p.m.]

Ms FORREST (Question) - My question is to the honourable Treasurer.  With regard to water and sewerage reforms and the requirement for councils as owners of the water corporations to pay for the inclusion of chlorine and fluoride into the water supply, should this cost be met by councils or can it be shifted to companies providing water and sewerage services to the community?

Mr AIRD - We dealt with this in legislation.

Ms Forrest - I thought that we had, but I just asked to clarify the situation.

Mr AIRD - The corporations can deal with it.  The shareholders will be party to that.

Mr Gaffney - Paid for by the user.

Mr AIRD - Yes, the consumer will pay for it in the end.

Ms Forrest - Will the councils pay the bills?  Is that how it is supposed to work?

Mr AIRD - I am not too sure about the mechanics of the actual billing arrangements, but I would imagine the corporations would be responsible for the bills.  I am not too sure about that but I will clarify it.

Health - Neurologist, North-West Coast - 28 October 2009

[2.50 p.m.]

Ms FORREST (Question) - My question is to the honourable Leader.  Leader, what is being done to address the loss of the north's only neurologist to ensure timely and appropriate access to neurological assessment tests and treatment for people in the north of the State and particularly the north-west coast?

Mr PARKINSON - I thank the member for her question.  The Launceston General Hospital's medical director, Dr Alasdair MacDonald, is using both formal and informal networks in an attempt to replace the services of the neurologist who died recently.

Dr Siejka was the sole neurologist practising in the public and private sectors in the north and north-west of the State.  It is common practice for new clinicians to join the substantial private groups that support their professional development and clinical practice.  This has added another level of complexity to the recruitment process.

Dr MacDonald is making extensive inquires with regard to Dr Siejka's replacement and wishes to emphasise that all electro-physiological and consulting was undertaken in a private capacity for both the north and the north-west.  Dr Siejka was apparently only employed for 12 hours per fortnight for public patient services.  In the planning process to recruit a neurologist a business case is being developed to increase the 12 hours per fortnight to a full-time staff specialist.  This is hoped to attract and retain a new specialist to the State from the mainland.

Housing Tasmania - Sale of Houses q2 - 27 October 2009

[2.53 p.m.]

Ms FORREST (Question) - Madam President, my question is to the Minister for Human Services.  Minister, I wish to put on record the information I would like, and you may be able to answer some of it now.  Minister would you inform me as to how many public housing properties are currently on the market in Smithton?  Is it a fact that one was recently removed from the market when it was required for an eligible tenant?  How many Housing Tasmania properties have been sold in the last two years in the Smithton and Circular Head areas and what were the addresses of these properties?  How many properties have been built in the Circular Head area under the Housing Tasmania projects and in what locations?  What was the purpose for each property?  I understand some are for public rental, some are for the Affordable Housing Strategy and being sold.  You might be able to answer some of that now, but I am happy to take the rest on notice.

Ms THORP - Madam President, I thank the honourable member for her question.  As she rightly concedes in her question, it is very detailed and I wish to indicate that I will take those questions on notice.

Housing Tasmania - Sale of Houses - 27 October 2009

[2.50 p.m.]

Ms FORREST (Question) - My question is to the Minister for Human Services.  Minister, with regard to the policy on selling public houses, is there a consistent policy across the State or are regional matters considered?  If so, what considerations are given to assessing current public housing needs in the Circular Head region?

Ms THORP - I thank the honourable member for her question.  In the few years leading up to about 2005 well over 1 000 houses were disposed of from Housing Tasmania stock.  At that time it was mostly to address the shortfall in funding from the Commonwealth Government.  That program has now been wound back and it is very much on a local-based area.  For example, in George Town 60 per cent of the stock there is three-bedroom houses, all of which are over 40 years old and in need of considerable maintenance.  The need in the George Town area is much more for one- and two-bedroom units.  So two lots, one of nine and one of 18, are currently being developed so that residents can be moved into better and newer and more appropriate accommodation because there is a considerable amount of under occupation.  So you have a three-bedroom house with one or two people living in it.  That will free up some of that stock to be disposed of.

Ms Forrest - I am not worried about the member for Windermere's patch, I am worried about mine.

Ms THORP - I am using that as an example because I was in George Town only on the weekend so those statistics come to mind.

Mr Aird - Mind you, the people up there don't want public housing at all there.

Ms THORP - It is an interesting attitude.

Mr Aird - We won't talk about that.

Ms THORP - No, we will not go there.  There is no blanket program for the whole State, it is more about identifying where the stock profile in any given area does not match the need and the people who are on the waiting list for that particular area.

Ms Forrest - Individual circumstances would be considered, is that what you're saying?

Ms THORP - Absolutely, by the individual people and the individual regions as well.  We are always open for people who are currently tenants in public housing to put in an expression of interest so that they may be able to become involved in the Streets Ahead project, but that request would only be considered if the stock was considered surplus to the profile needed for that region.  It is very much on a case-by-case basis.

I think the last time I looked at the database for Streets Ahead there were only about two or three that were currently listed, but if a request was made, it certainly would be looked at.  If you would like me to get the specific details for the stock profile of the Circular Head region and any intentions to dispose of stock, I would be happy to do so.

Latrobe Boxing Day Carnival Funding - 27 October 2009

[2.40 p.m.]

Ms FORREST (Question) - Madam President, my question is to the Treasurer.  With regard to the recent and welcome announcement that the Government is willing to provide sponsorship of the Latrobe Boxing Day Carnival to ensure this carnival can continue, firstly how much is the Government willing to provide to the Latrobe carnival and, secondly, will the Government also provide funding support to other iconic carnivals including the Rosebery Athletic Carnival, a carnival that has been held for over 50 years and the only carnival that has rock-drilling championships in Tasmania and is also experiencing significant funding challenges due to the global financial crisis?

Mr Wilkinson - I think the member for Mersey won that one year too, didn't he, the Latrobe Gift?  Two years?  Well, there you go.

Mr AIRD - The Government have provided assistance in the past, have we not?

Mr Gaffney - It is provided through SCAT, which then spreads it out across the carnival series.

Mr AIRD - Nothing like a bit of spread SCAT, I say.  That is something like a question from the honourable member for Windermere.  I thank the honourable member for his assistance.  Madam President, I am not too aware of the detail that the honourable member is alluding to, but I will endeavour to find out.

Ms Forrest - They've made funding commitments.

Mr AIRD - Yes, but it would be under another portfolio.  I will do my best to try to find out what is going on, but I do not know.  I have not been involved in that directly.

Ms Forrest - Do you support the principle of supporting other carnivals?

Mr AIRD - I will look at the issue seriously.  I know in the past we have supported carnivals.  I remember during the premiership of the Honourable Jim Bacon we supported carnivals.  I remember that was of some interest to members.  Put that question on notice and I will follow it up for the honourable member.

Hobart International Airport - Divestment Costs - 27 October 2009

Ms FORREST asked a question of the Treasurer -

With regard to the tabling of relevant orders pursuant to the Public Account Act 1986 -

(1)   (a)     In the 2007-08 financial year what were the dates and amounts of the orders made pursuant to the Public Account Act relating to the additional divestment costs of the Hobart International Airport Pty Ltd; and

(b)    what were the dates, amounts and payee details of any payments made relating to any additional divestment costs of the Hobart International Airport Pty Ltd?

Mr AIRD (Derwent - Treasurer) - Madam President, in answer to question 94 -

Mr Martin - What about 81?

Mr AIRD - If that is subject to an Auditor-General's report, it will not be answered until we get the Auditor-General's report.

Madam PRESIDENT - And 81 is referred to the Leader for the Government, not the Treasurer.

Mr AIRD - Yes, I think that is right.  The answer to question 84 reads:

(1)   The June 2008 quarter return under section 19 of the Public Account Act 1986, detailing the dates and amounts of orders made pursuant to sections 10, 11 and 12 of the act for 2007-08, was tabled by notice of motion in both Houses of Parliament in early October 2008 and agreed to by both Houses on 30 October 2008.

(a)     The order made pursuant to section 11(2) of the Public Account Act, approving additional funding to the Finance-General Division of up to $6 million for the Hobart International Airport Pty Ltd divestment costs, was dated 25 June 2008.  The actual expenditure against this funding provision during 2007-08 was $5.419 million.

(b)    Two additional payments, totalling $11 511.80 - GST exclusive - were made to Clayton Utz during 2008-09 for final legal advisory services as follows:

24 July 2008 - $8 011.80

2 September 2008 - $3 500.00

Hydro Executives - Remuneration Packages - 27 October 2009

Ms FORREST asked a question of the Leader of Government Business in the Legislative Council -

With regard to the remuneration packages for the senior Hydro executives -

(1)   Have these remuneration packages, as identified in the June 2008 annual report, changed at any time during 2009?

(2)   What element of the senior executives' remuneration packages are performance based?

(3)   (a)     What performance goals were set for the senior executives in 2009; and

(b)    Were any of these goals profit related; and

(c)     What value was attributed to profit or earnings before interest, taxes, depreciation and amortisation?

(4)   Who is responsible for setting the performance targets in order that social responsibility and probity are assured?

(5)   Who is responsible for reviewing the executives' attainment of performance goals?

(6)   Is the Government or relevant minister involved in the process of establishing performance goals or assessment in terms of social responsibility and probity in the attainment of these performance goals?

Mr PARKINSON replied -

For the purposes of this answer, Hydro Tasmania's senior executives are those members of the organisation's Executive Leadership Team.  This team comprises Hydro Tasmania's Chief Executive Officer and eight general managers.

(1)   Some remuneration packages may have changed as a result of annual reviews reflecting changes to employment market conditions and an executive's performance.  Executives' packages and roles are benchmarked against similar roles in the market, and performance for the year is assessed against agreed performance targets.

(2)   Senior executives are eligible to receive an incentive-based payment.  Dependent on their role this may be up to a maximum of 25 per cent of their total employment cost - TEC.

(3)   (a)     Senior executives are set performance goals consistent with the goals of the corporation and aligned to the strategic objectives of the business as set in Hydro Tasmania's Corporate Plan.

The relevant element of this corporate plan, the Statement of Corporate Intent, is published each year in Hydro Tasmania's Annual Report.

(b)    Not directly.  However, the corporation's strategic objectives, to which performance goals are linked, are intended to improve the long-term profitability and sustainability of Hydro Tasmania's business.

(c)     The term 'earnings before interest, taxation, depreciation and amortisation' is known as EBITDA.  Senior executives are eligible to earn a maximum of 4 per cent of their TEC provided the corporation exceeds its budgeted EBITDA target by not less than $10 million.  If the corporation does not achieve its budgeted level of EBITDA, no incentive is payable for this component.

Please note:  this 4 per cent is part of the maximum of 25 per cent mentioned in the answer to question (2).  EBITDA for 2008-09 was $162.7 million.

(4)   Hydro Tasmania's board sets performance targets for the business.  These are described in the Corporate Plan, the annual preparation of which is a requirement of the Government Business Enterprises Act 1995.  That act requires an enterprise's Corporate Plan to be approved by the stakeholder ministers, who for Hydro Tasmania are the Treasurer and the Minister for Energy and Resources.

(5)   The CEO for senior executives; the board for the CEO.

(6)   No.

Preliminary Outcomes Report - Unfunded Superannuation Liability - 15 October 2009

[2.53 p.m.]

Ms FORREST (Question) - Madam President, my question is to the Treasurer.  On Tuesday when discussing the Preliminary Outcomes Report you stated, 'We cannot control actuaries, we cannot tell them what to do.  We do not know what the actuary is going to do next time'.  As I understand it, actuaries rely principally on information provided by the Government and the RBF, such as the number of plan members, age, length of service, their salaries.  Available plan assets is a question of fact and is known at any point in time.  All actuaries do is make assumptions about the growth in plan assets and members' salaries.  If this is the case, why is the size of the unfunded super liability such a surprise and is the Government not able to make a more accurate interim estimate than that contained in the budget estimated outcomes?

Mr AIRD - I thank the honourable member for her question.  Actuaries take in a lot of information and Treasury does supply a range of information to the actuary.  The actuary also makes other judgments about the level of return on investments, the state of the equity market, how things are looking in terms of superannuation liability.  They will be making a whole range of judgments about a range of issues.  If you are assuming that the actuary only makes decisions on the basis of information supplied to them -

Ms Forrest - I am not suggesting that.

Mr AIRD - What would happen is that if the actuary wants information then we would provide it to them.

Land Tax - 15 October 2009

[2.34 p.m.]

Ms FORREST (Question) - My question is to the Treasurer.  Treasurer, further to questions related to land tax I asked yesterday and to rephrase one that you really did not answer, is it true that individuals, say your mum and dad investors, who have invested in properties can simply disaggregate by having properties in separate names?  Further, is disaggregation harder in the case of commonly controlled companies where a greater than 50 per cent ownership stake triggers the grouping provisions?  Do you accept that land tax avoidance under the current arrangements is resulting in less revenue to the State than should or could be collected?

Mr AIRD - I thank the member for her question.  I do not have any information which relates to non-compliance, if you like, with the laws surrounding land tax.  I would have to take advice from the State Revenue Office in relation to the issues that you raise, other than to say that if there is a deliberate contrivance  which can be seen as a way, in terms of ownership, to avoid land tax, then the commissioner can take action in relation to that.

Ms Forrest - But would you not suggest that if I have a property in my name and my husband has a property in his name and then we buy one in a company name, and all investment properties, a company that is the two of us, that is a legitimate and legal way to go about it?

Mr AIRD - I would have to see it on a case-by-case basis.  In any case, I would not be making a judgment about that, the commissioner would.

Ms Forrest - Has it come to the commissioner's attention, though?

Mr AIRD - I will make inquiries about that.  I have not seen any report given to me which indicates that is occurring.  I will follow this matter up and try to provide more detail for the honourable member.

Land Tax q3 - 14 October 2009

[3.11 p.m.]

Ms FORREST (Question) - My question is to the Treasurer.  I did not go to the land tax briefing but this question does relate to land tax.  Treasurer, I would like you to clarify the concept of expectation of profit with regard to land tax on primary production land.  I understand that it has to be a reasonable expectation of profit and you said yesterday that it had to be an expectation that you would be trading for a profit.  Can you tell me how this is defined and interpreted by the State Revenue Office, how often is the primary production exemption reviewed by the State Revenue Office and does the land tax exemption continue, regardless, until the property is sold?

Mr AIRD (Question) - I thank the honourable member for her question.  I cannot immediately recall the detail, although I can remember having some information about this some time ago.  The overall principle here is that there is the expectation for people to trade and operate a farm as a major business.

Ms Forrest - With an expectation of making a profit.

Mr AIRD - Yes, with an expectation of making a profit.  That is on the basis of holding land and deliberately not developing it just for the sake of holding land and using that as a contrivance to not pay land tax.  Of course, not all farmers make a profit; we know that.  It is cyclical and there are all sorts of reasons some farms do not make a profit.  As long as there is not a deliberate contrivance to hold the land as primary production land and not use it as a business and to pretend that it is a business as a way of avoiding land tax; that is the reason for that criteria.  In terms of the detail I would have to seek some further information from the State Revenue Office.  I recall that there have been some issues about this in the past but I just cannot recall the detail.  I will get the details for the honourable member.

Land Tax q2 - 14 October 2009

[2.55 p.m.]

Ms FORREST (Question) - Madam President, this question has two parts but I will ask the Treasurer anyway.  Treasurer, yesterday the Leader for the Government expressed his view that land tax was of little concern to landlords because the incidence and thus the burden fell squarely on the shoulders of tenants.  Treasurer, is this the Government's view and does the Government have any guiding principle of equity in this matter of land tax such as that it is perfectly acceptable to burden a tenant with land tax when home owners are exempt?

Mr AIRD - I thank the honourable member for her question.  What the honourable Leader was saying yesterday is right, that landlords generally pass on those costs to their tenants.

Ms Forrest - To their tenant's primary residence but they do not pay it on their own primary residence.  Is that equitable in the Labor Government's view of the world?

Mr AIRD - We have a whole range of mechanisms about fair rent and we have established a rental bond board and so on.  The market that operates in terms of private tenancies is well known.  Any landlord who looks at the costs within their business looks at ways of trying to achieve a return on those costs.  That is why they are in the business.

Ms Forrest - And they factor in land tax.

Mr AIRD - Well, of course they do.

Ms Forrest - For the tenants to pay, but they do not pay it on their principal residence as a landowner.

Mr AIRD - You are comparing apples with oranges.  The two are not related.

Ms Forrest - Land tax is land tax.

Mr AIRD - It is, but you are talking about land tax which is part of a landlord cost structure in terms of formulating their rents.  Everyone knows that, it has been there forever.  There is no secret to it.  What do landlords do?  They look at ways of trying to recover that tax.  That has always been the case and because there is a spike now for some people because there has been a revaluation, I am sure that landlords will work out how they will try to recover that over a period of time.  Do not forget these rates, the revaluations, are now in place for another five or six years.  It is the adjustment factor that landlords need to take into consideration; if they think a tenant is not going to be able to pay the rent and is a good tenant, they will take that into consideration in setting their rents.

Land Tax - 14 October 2009

[2.48 p.m.]

Ms FORREST (Question) - Madam President, my question is to the Treasurer.  Treasurer, you stated yesterday, when we discussed the Preliminary Outcomes Report and the issue regarding land tax and fairness or otherwise of aggregation, that it is not necessarily fairer if people can disaggregate some assets to deliberately avoid paying land tax.  What is the Government proposing to do to make land tax fairer?  Is it true that individuals, say Mum and Dad investors, can simply disaggregate by having properties in separate names?  Is disaggregation harder in the case of commonly controlled companies where a greater than 50 per cent ownership stake triggers the grouping provisions?  How does this reconcile with the Government's concept of equity?

Mr AIRD - I thank the honourable member for her question and her interest in this subject.  I have been consistent on this issue for some time.  The reality is that the State Government raises $90 million a year from land tax.  That is about 11 per cent of our own sources of taxation revenue.  If there are going to be changes which would lessen that amount - some change to the scale or rate, some change to aggregation or disaggregation - there would be a negative hit on the Budget and if that occurs, there are a couple of consequences:  one is, you reduce the services, and if you do not reduce the services then you have to find an alternative source of income which can make up the shortfall that you otherwise would have received from land tax.  The other point about land tax is that it is based on assets and it represents a tax on assets.  What has occurred is nearly a perverse outcome of a growing economy in that over the past 10 years people's assets - the assets that are owned by individuals and companies - have grown remarkably.  In parallel with this there has been a revaluation and the value of the assets has increased markedly.  If you look at the assessments made by the Valuer-General over a five- or six-year cycle, there is a gap between the original valuation five or six years ago to now and there has been a spike in some areas, but not in the rate of tax.  The only reason there is an increase in tax is that there has been a value increase in the asset.  The key thing that goes to the heart of what the honourable member alludes to is that some individuals' assets have increased markedly and therefore they have a tax bill to pay.  What happens here is that some people might not have the cash to meet the obligation.

Ms Forrest - My question is more about disaggregation.

Mr AIRD - It is the same in any event.  The disaggregation of assets is a way of lessening your tax liability.

Mr Wing - Which is something that is fair and reasonable.

Mr AIRD - It is the same in every State.

Members interjecting.

Mr Wilkinson - You know it is different in every State.

Mr AIRD - No, the principle of aggregation is the same.  The scale might be different, but the principle of aggregation is still the same.

Members interjecting.

Madam PRESIDENT - Order.  We are not having a debate.

Mr AIRD - Aggregation is the same in every State.  You can talk about thresholds, you can talk about rates. You can do that as long as you like.  Honourable members are always encouraging the Government to spend more on their pet issues.  They come here and they say, 'We want more money for this, this and this'.  I was nearly going to say, 'Blow me down', Madam President.  Here are honourable members arguing that our taxation take is less, therefore denying us the ability to fund the services the honourable members want us to fund.

Members interjecting.

Madam PRESIDENT - Order, order.  I think the honourable member's question was about people disaggregating by putting assets into separate names.  I suggest we stay on the question and answer, not the wider debate of land tax.  Please refer to the honourable member's question.

Mr AIRD - I thank you for your direction, Madam President.

Ms Forrest - Perhaps you should listen to the question.

Mr AIRD - Do not lecture me on listening to questions, if you do not mind.  You ask one question at a time and I will answer one question at a time.  The fact is that any way of lessening the revenue whether it is by disaggregation, lowering the rates or increasing the thresholds, is going to lead to less revenue coming to the State and the reason all States that have land tax aggregate is that it ensures that there is a way of getting compliance to pay the tax and not deliberately avoid paying tax on their assets.

Home Share Program - 7 October 2009

[2.53 p.m.]

Ms FORREST (Question) - My question is to the Minister for Human Services.  Minister, following an answer to a question yesterday, I think it was, regarding the Home Share program, I would like to clarify whether one of the purposes of the Home Share program is to support low-income earners into home ownership.  If that is the case, how do you define low-income earner?

Ms THORP - Madam President, I thank the honourable member for her question.  I hope you will have the opportunity to look at Hansard to see the income levels that were ascertained there.  They are made up of two factors.  One, affordability; there is no point someone getting into a loan agreement that they cannot afford to pay back.  So they have to be able to afford to pay it back.  Also, you do not want to make funds available to someone who has access to raising credit through the normal means.  So there is a band in the middle where someone is who can afford to pay it back and also they are not earning so much money that they do not really need the equity scheme.  That is how their boundaries were ascertained.  Yes, there are those constraints, and low- to-moderate-income earners.

Ms Forrest - How do you define low-income earner?

Ms THORP - They were defined by ability to pay back the loan based on income, which is the normal actuarially-determined figures used by most banks and credit unions.

Irrigated Agricultural Land - Salinity - 7 October 2009

Ms FORREST asked a question of the Leader of Government Business in the Legislative Council -

With regard salinity and irrigated agricultural land -

(1)   (a)     Did the publication of a report in August 2000 under the National Land and Water Resource Audit titled Extent and Impacts of Dryland Salinity in Tasmania by C.H. Bastick and M.G. Walker highlight salinity problems in certain areas of Tasmania; and

(b)    if so, do these include any areas identified in the 12 priority projects as part of the Government's food bowl initiative?

(2)   (a)     Has the Government updated the findings of the project which estimated salinity to be growing at 1.5 per cent per annum in salinity-prone areas; and

(b)    if so, what are the updated findings relating to -

(i)     the State as a whole; and

(ii)    the areas covering the 12 priority projects?

(3)   (a)     If an updated audit has not been performed, has a salinity risk assessment been carried out for each of the areas covered by the 12 priority projects; and

(b)    if so, what were the results in each case; and

(c)     if not, does site selection for a particular location precede any salinity risk assessment?

(4)   (a)     Have any salinity problems been identified in the north-west region; and

(b)    if so where, and to what extent will future irrigation be limited as a result?

(5)   (a)     Have any salinity problems been identified in irrigation areas with publicly owned irrigation facilities, such as the Craigbourne Dam and the Cressy Longford Scheme; and

(b)    if so -

(i)     what was the nature and extent of the problems; and

(ii)    have these problems resulted in an inability to irrigate or crop losses; and

(iii)   in the case of any crop losses, what was the extent of the losses in hectares and monetary loss?

(6)   (a)     Have any salinity problems been identified in any private irrigation facility in Tasmania; and

(b)    if so -

(i)     where have these problems been identified; and

(ii)    what was the nature and extent of the problems?

Mr PARKINSON (Hobart - Leader of Government Business in the Legislative Council) - Madam President, I seek leave to table the answer and have it incorporated in Hansard due to the detailed table of figures in the answer.

Leave granted.

The answer read as follows:

(1)   (a)     Yes.

(b)    Yes.

(2)   (a)     Yes.  In late 2003 DPIW updated the 2000 salinity audit figures based on information provided by NRM and Landcare groups and individuals.

(b)    (i)     The 2003 audit of observed salinity indicated in the order of 73 800 ha affected by salinity across Tasmania.

(ii)    At this time no definitive boundaries have been established for the 12 priority project areas under the secure water initiative.  The information provided below shows the estimated area of land affected by salinity by catchment.  This information gives a picture of the extent and location of salinity:

*     Tasmanian Catchments - Land and Water Management (DPIW, 2000)

**   Contains a proportion of salinity caused by inundation by the sea.

Source:     Bastick, C.H., and Walker, M.G.  Extent and Impacts of Dryland Salinity in Tasmania.  DPIWE, 2000, updated 2003.

(3)   The audit was updated in 2003.

(4)   (a)     Yes.

(b)    Catchments in the north-west with observed salinity areas are described in the table above.  The areas affected are predominantly in grazed areas and as such are not expected to limit future irrigation potential.

(5)   (a)     Yes.

(b)    (i)     Currently about 90 per cent of the dryland salinity occurs in areas used by the grazing industries (beef and sheep), with less than 5 per cent of the salt-affected land being irrigation salinity.

(ii)    Yes.

(iii)   There have been no formal estimates of crop losses in relation to salinity impacts.

(6)   (a)     Yes.

(b)    (i)     Catchments in the State with observed salinity areas are described under question (2)(b).

(ii)    The areas affected are predominantly in grazed areas.

Rail Services - Valuation - 6 October 2009

[2.51 p.m.]

Ms FORREST (Question) - Madam President, my question is to the honourable Treasurer.  Treasurer, with regard to the proposed takeover of rail services by the Government, can you provide details of when valuations of the rail services occurred over the last two years, whether these valuations included above- and below-line assets, who undertook the valuations and what the results of these valuations were?

Mr AIRD - I thank the honourable member for her question.  I do not have the specific details of the valuations that have been placed on the assets.  I do know that there has been a lot of work undertaken but I cannot immediately recall the detail of the times and who undertook the valuations.

Ms Forrest - Seriously, you don't know who undertook it?

Mr AIRD - In regard to the actual company and the timing, no I do not, but obviously due diligence has to occur, and it has been put in place, and when I get the detail I am happy to provide it to the honourable member.

Home Share Program - 6 October 2009

Ms FORREST asked a question of the Minister for Human Services -

With regard to the Home Share program -

(1)   How many Tasmanians have been assisted into home ownership under the Home Share program?

(2)   What are the geographic locations of the successful applicants?

(3)   What are the income brackets of successful applicants?

(4)   What criteria are applicants required to meet to be eligible under this program?

(5)   Which sources of income can be used to determine the assessable income of applicants in support of their application?

Ms THORP replied -

(1)   One Tasmanian has been assisted into home ownership under the Home Share program.  There are a further 27 contracts being negotiated.

(2)   The successful applicant is from Launceston.

(3)   The successful applicant has a gross income of less than $52 936.

(4)   Applicants are required to meet the following general criteria to be eligible for Home Share:

• be Australian citizens or permanent residents, resident in Tasmania;

• be natural persons at least 18 years of age;

• be able to provide a minimum deposit of the greater of $3 000 or 5 per cent of the purchase price - the First Home Owners' Grant can be used towards the deposit;

• not be owners or have an interest in any other real property;

• not be an undischarged bankrupt or discharged from bankruptcy within three years prior to the date of application;

• be free of existing debt to Housing Tasmania;

• not have received previous assistance under Streets Ahead or the Home Ownership Assistance Program;

• be able to pay legal and establishment fees; and

• intend to reside in the purchased or constructed house as their principal place of residence for the term of the agreement.

Applicants are also required to meet the following income and asset criteria to be eligible for Home Share:

• The gross income limit depends on the type of household, as shown in the table below.

• The applicants' financial assets must be no more than $55 000.

• Financial assets are:

Cash                                              Lump sum payments other than compensation payments

Savings                                           Net fixed assets of a business

Shares, bonds                                 Realised superannuation funds

and  investments

• Applicants' normal household - non-financial - assets are not included unless they represent luxury items of a value that would exceed the financial asset limit.

(5)   The applicants' gross income from all sources is to be used in determining income eligibility.

Hydro Tasmania - Financial Position - 6 October 2009

Ms FORREST asked a question of the Leader of Government Business in the Legislative Council -

With regard to the financial position of Hydro Tasmania for the 2008-09 financial year -

(1)   How much of the Hydro Tasmania's profit for the 2008-09 financial year can be attributed to their profits made during June 2009 during a period of extreme volatility in the electricity market at that time?

(2)   (a)     Was legal advice sought by Hydro Tasmania prior to June 2009 with regard to avenues available to maximise profits; and

(b)    if so, did this advice support activity that resulted in extreme volatility in the spot market prices; and

(c)     does this activity represent a manipulation of a loophole in the National Electricity Market - NEM - regulations?

(3)   (a)     If the ACCC and/or National Energy Regulator find evidence of non-compliance with the regulations and order that the overcharges be refunded to Aurora and then to the end users, will this element of the profit be declared as 'at risk' and therefore included as a risk contingency in their annual report; and

(b)    if not, why not?

Mr PARKINSON replied -

(1)   Due to accounting standards and associated fair value adjustments, it is difficult to talk of profit for a particular month.  However, the thrust of the member for Murchison's question can be answered in terms of revenue for the 2008-09 year and for the month of June 2009.

In the 2008-09 financial year, the revenue raised from Hydro Tasmania's sale of electricity and energy-related products was $403.771 million.  Revenue for the month of June 2009 was $47.989 million, or 11.9 per cent of the year's revenue.

Revenues can vary considerably from month to month depending on a range of factors, including demand, water inflows and market prices throughout the National Electricity Market.

(2)   (a)     Yes.

(b)    The advice obtained by Hydro Tasmania is legally privileged.  Accordingly, the advice will not be disclosed, as to do so may waive that privilege or otherwise compromise Hydro Tasmania's legal position.

(c)     All Hydro Tasmania's activity in the NEM during June 2009 was in accordance with NEM rules.

(3)   (a)     In preparing its financial statements for the 2008-09 year, Hydro Tasmania has not recognised any profit as at risk in terms of contingency reporting.  Accordingly, no such contingency as envisaged by the member for Murchison has been included in Hydro Tasmania's 2008-09 financial report, which has been audited by the Auditor-General.

Moreover, neither the ACCC nor the Australian Energy Regulator has the power to order the refund of moneys.

(b)    See answer to 3(a) above.

Mental Health Services - 6 October 2009

Ms FORREST asked a question of the Leader of Government Business in the Legislative Council -

With regard to the provision of certain Mental Health Services and funding -

(1)   (a)     Has funding for the 'Bridging the Gap' scheme increased since its inception five years ago; and

(b)    if not, does this indicate no increase in demand or need over that same period?

(2)   (a)     How is the demand or need for the service monitored?

(b)    Is the data collection process adequate to appropriately identify the demand or need; and

(c)     if not, what change to the data collection process is required to absolutely ensure that services provided do adequately meet the demand or need?

Mr PARKINSON replied -

(1)   (a)     In November 2004, the Government announced funding of $47 million over four years to implement the recommendations from the Bridging the Gap report.

This funding was aimed at three main areas: improving the quality and safety of services; developing supported accommodation services and strengthening clinical resources in the community with an emphasis on children and adolescent services.

The Government committed an additional $10.8 million to mental health services in the 2008-09 Budget, which has enabled a continuation and growth of services funded through Bridging the Gap.

Of this latest amount, $5.8 million was added to the funding base and to meet indexation costs.  A further $1.6 million was provided to enable funding for one statewide and three regional clinical directors, one for each of the north, north-west and southern regions.  This initiative has added significantly to the capacity of Mental Health Services to provide clinical services across the State and has enabled the implementation of a robust clinical governance framework.  A new director of training and a revitalised training program was also funded from this component.

A sum of $1.5 million was allocated for additional inpatient beds at the forensic mental health unit - the Wilfred Lopes Centre - and additional funding was provided to progress the Review of Alcohol, Tobacco and Other Drugs and the Review of the Mental Health Act.

(b)    Not applicable, as funding has increased.

(2)   (a)     Mental Health Services collects, analyses and reports a range of activity data covering inpatient, ambulatory, residential and community sector organisation levels in order to monitor and measure demand for services on an ongoing basis.  Calls to the Mental Health Helpline, which operates on a seven days per week, 24 hours per day basis, are also captured, as is activity relating to the Crisis and Treatment teams that operate statewide.

Where possible, Mental Health Services analyses data in support of the delivery of mental health services by general practitioners and relevant primary care providers with a view to understanding in more detail the total need for mental health-related services across Tasmania.

Overall demand for the highly specialised services offered by Mental Health Services continues to be strong and is monitored as outlined above to enable service planning to be undertaken.

(b) and (c)

Planning is currently under way to implement a statewide, service-wide electronic clinical information system that, once implemented, will provide improved data capture to assist service planning and better client outcomes.

Homelessness - 3 September 2009

[2.56 p.m.]

Ms FORREST (Question) - My question is to the honourable Minister for Human Services.  Minister, if one were to believe the media reports of last night, we have 2 200 Tasmanians sleeping rough every night.  Or was it 2 500?  I would like to know how many people are sleeping rough.

Mr Aird - So you didn't believe the report then?

Ms FORREST - I thought maybe it was correct.  I would like the minister to confirm the number of people who are sleeping rough.  How do they know that number?

Ms THORP - I thank the honourable member for her question because it gives me an opportunity to put on the record - and I know honourable members always make sure to check their facts - the disappointment that I felt last night.  We have had some great news for Tasmania over the last couple of days announced by the minister, Tanya Plibersek.  Members may recall that when we first heard that the stimulus package stage 2 was rolling out we were hoping that we would get about 500 new housing units for Tasmania.  The tender was really successful, in fact it is fewer than that, it is 445, but it is still a really good-news story.  It also involved funding towards two dedicated homelessness facilities:  one in Campbell Street in Hobart and one through the Door of Hope in Launceston, an organisation that has long been trying to service the needs of people with high-level needs in the Launceston area.  The other really good piece of news was that the Federal Government also gave us $5 million to go towards developing vacant land in Clarendon Vale providing the guttering, lighting, footpaths, sewering, all the infrastructure that is required before a block can go up for sale.

Mrs Rattray-Wagner - That's a nice area, isn't it?

Ms THORP - The views of the mountain are superb.  That will enable us to sell these 110 blocks at about $45 000 less than the market value, which will be set by the Valuer-General, which means they will be available to similar kinds of people who are eligible for Home Share and programs such as that - people who want to get into private home ownership.

Mr Wilkinson - So the answer is - how many people?

Ms Forrest - How many people are there besides you and the member for Braddon sleeping rough together?

Ms THORP - There are a couple of important statistics that we need to know here.  Determining the actual benchmark figure was a task in itself.  That was done in the middle of last year with assistance from the ABS.  The figure was determined at 385, so that set the target for the State at 190 -

Ms Forrest - That's a lot of people still.

Ms THORP - Of course it is, there is no denying it, which is why we have set ourselves the target of halving that total by the end of 2010.  That is why these five dedicated homelessness facilities are being built and why other programs are on the go.  To have a good-news announcement such as that overshadowed by an incredible inaccuracy, that we have 2 500 people sleeping rough, and probably even more serious is to have another commercial station saying that we are selling 110 public houses in the Clarendon Vale area for $45 000 less than their market value, was distressing.

Mr Wilkinson - How do we know, how do the ABS know?  They don't go out and count them over the eight hours or 10 hours of darkness?

Ms THORP -Through you Madam President - I am quite happy to address that.  That was a task that was given to the ABS on our behalf - 'Can you tell us as close as you possibly can what that figure is?'  They initially gave a figure of 376 and then only a couple of months ago they revised that figure and informed us that 385 was closer to the mark, which is why we have revised our figure for halving the benchmark by the end of 2010.  We have revised that up from 188 to 193.

It is well on the way and there are a lot of good things happening right across the housing spectrum in Tasmania for people and I do thank the honourable member for her question and interest in the subject.

Mrs Rattray-Wagner - And there is a retraction, I believe, coming tomorrow.

Ms THORP - Yes.

TASRAIL - Financial Statements - 3 September 2009

[2.51 p.m.]

Ms FORREST (Question) - Madam President, my question is to the honourable Treasurer.  Treasurer, you have been conducting due diligence on TasRail for some considerable period.  What was the turnover of TasRail in the latest available financial statement and what was the net operating cash flow - not the profit but the net cash flow - was it a surplus or a deficit?  In other words, did the parent company, Asciano, have to provide extra funds for operations in the last year and, if so, how much?  Given that the infrastructure department has had difficulty in finalising a purchase of the rail asset, is the Government still considering trusting the operations of the rail business to the department or is the Government still considering whether or not to place the rail business into a GBE or SOC?

Mr AIRD - I thank the honourable member for her question.  There has been a range of due diligence measures undertaken in terms of the proposed purchase of Pacific National Tasmania's assets in Tasmania.  It is true to say that in attempting to purchase that asset there have been a number of complex areas of discussion.  I do not have the detail of the specific requirements.  Any statement made by the Government would have to be justified on the basis of the information we have, and some of that will be commercial in confidence.

Ms Forrest - What about their net operating cash flow?

Mr AIRD - I do not have access to that information.

Ms Forrest - You'd know whether there was a surplus or a deficit, surely.

Mr AIRD - No, I am not going to go into the details until the deal is done.  When the deal is done I will be prepared to engage in some of these discussions.  Also, once the deal is concluded there will be some aspects of that which will have to remain commercial in confidence but we will be in a position to make a statement about why we have purchased the assets, what we have gained with our commitment to purchasing those assets and the value that they are going to give to providing essential transport infrastructure for Tasmania.

National Broadband Network Rollout -3 September 2009

[2.41 p.m.]

Ms FORREST (Question) - Madam President, my question is to the honourable Treasurer and Minister for Economic Development.  Treasurer, the rollout of the national broadband network is, and should be, a whole-of-government project.  Do you agree with the comments of the leading economics firm, Concept Economics, that the Federal Government's massive investment in optic fibre is irrational, and the estimated cost of $42 billion would exceed its benefits by $20 million?  If not, how will you ensure that all the required support and commitment will be available in Tasmania to ensure successful rollout of this vital infrastructure?

Mr AIRD - Madam President, I thank the honourable member for her question.  I was not aware of those comments.  There are some commentators who think there should be a purely market-driven approach to the rollout of national broadband.  The amount of $42 billion is not the total amount that the Commonwealth is committing to this project.  Around about half that amount will come from the Commonwealth.  My view is that this is a massive investment into infrastructure which is going to allow us to develop our communications and our broadband capacity.  The estimate of the expenditure here will be between $500 million and $700 million.  That is a large investment in what will be a major productivity gain for this State.  It will assist in our education system, it will assist in our e-health system, it will provide the infrastructure for businesses, it will attract business investment, and that investment is probably going to put Tasmania at the forefront of broadband in the world.

For 200 000 houses to have access to this broadband optic-fibre facility is going to be a massive fillip for the State generally, and I believe it will allow us to develop economically, it will allow us to develop our education provision, it will assist us in our health provision and it will provide a massive benefit to the Tasmanian community.

Health - Obese Patients - 3 September 2009

[2.32 p.m.]

Ms FORREST (Question) - My question is to the Treasurer.  Treasurer, we are all aware of the financial demands that the Health department places on the State Budget.  Considering the increased demands relating to the cost of treating complications following surgery and the greater need for joint replacement associated with obese patients, do you support the suggestion by the Deputy Premier and Minister for Health as quoted in the Mercury newspaper today, that, 'Doctors may stop treating fat people if they do not improve their health' thus reducing the cost to health services?  Further, how would you answer the question also posed by the minister in the same article, and I quote:

'Is it worthwhile investing taxpayers' dollars into somebody's knee that is not going to work because that person has not dealt with the problem that led to the need of that operation in the first place?'?

Mr AIRD - If you were answering this question you would answer it the same way.  I declare a vested interest.  I do not interfere with the Minister for Health's comments on health matters.

Ms Forrest - But it is about money.

Mr AIRD - As the honourable member is aware, there has to be a discussion about the level of medical intervention with a whole range of people who find themselves requiring a level of acute care and medical intervention.  It is a moral, ethical, philosophical argument as much as a fiscal argument.  There is a range of opinions about that.  The levels of interventions in women giving birth, the range of interventions for people who are getting older - I am not declaring a vested interest because of my age - I think that if we are going to have a discussion about this and the attitudes that are going to be -

Mr Harriss -  Did the minister really say that sort of stuff?

Mr AIRD - I can only say what I have seen in the reports but I am not making any commentary about her comments.  I am making a general broad view that this goes far beyond fiscal implications.  It is a discussion which the community has to have.  It may have fiscal implications but the community itself and those involved in the health professions need to have a discussion as well because in some ways they can lead the debate about what is the right attitude in terms of medical intervention.

Public Account Act - Quarterly Returns - 2 September 2009

[4.08 p.m.]

Ms FORREST (Question) - Madam President, my question is to the honourable Treasurer.  Further to the answer you provided yesterday regarding the quarterly returns under the Public Account Act, I understand the purpose of the requests for additional funds, or RAFs, is to facilitate a system of internal controls within government.  How close to 30 June were the requests for additional funds signed in the last financial year?  I am not talking about when they were dated, but when they were signed.

Mr Aird - You mean signed and not dated?

Ms FORREST - The date that they occurred as opposed to the date you signed them off.  When did you sign off the orders and does the situation ever occur that RAF orders are made after money has been spent?  If so, what is the point of a system of internal control that merely acknowledges the horse's absence long after it has bolted?

Mr Harriss - The Minister for Racing -

Mr AIRD - is very frustrated.  I can understand the exploration of these issues.  What occurs, Madam President, is that as a measure of the management of a department there may be, from time to time, unexpected pressures placed on their budgets, but nonetheless they need to work within those parameters of the budget allocations.  The agency has to absorb those allocations through that financial year.  The intention of this strategy is to keep the request for additional funds to a minimum and only where there is a degree of evidence that unaccepted expenditure has occurred then a request for additional funds is provided and so that is why any request for additional funds is generally done right at the end of the financial year because all the way through that year I am asking and trying to apply a degree of fiscal rectitude in those agencies to adhere to their budget allocation and absorb that additional expenditure.  Sometimes by the end of the financial year that is impossible -

Ms Forrest - The money has already been spent sometimes?

Mr AIRD - From time to time there will be expenditure that was not expected and they might have to pay out on that expenditure but they absorb that within their budget and it is only when there is evidence to say that they cannot meet that budget allocation that a request for additional funds is made.  I think that explains the processes as best I possibly can, Madam President.

Finance - GST Receipts q4 - 2 September 2009

[4.03 p.m.]

Ms FORREST (Question) - My question is to the Treasurer.  Treasurer, you say that you cannot speculate, but in the last State Budget when you were considering the GST receipts that were flowing from the Federal Government in the forward Estimates, in the next financial year you have adjusted that down, speculatively one could suggest, by $50 million.  Now you are saying that you are not willing to speculate in the future.  Well, you speculated in the future with that $50 million downwards, so how do you relate that to the answer you have just given?

Mr AIRD - What we did was adjust the GST revenue on the basis of an adverse change to the formula for GST from the review of the Commonwealth Grants Commission.  It was there as a prudent fiscal measure to manage any adjustment.  It was a conservative attitude we took because we wanted to make sure that if there was an adjustment made from the Commonwealth Grants Commission's review of taxation revenue relativities from GST, we would have an in-built buffer for that year to make an adjustment.  That is why we made that decision.  It was made as deliberate fiscal strategy to ensure that we did not find ourselves caught short in our allocations made for that financial year.

Finance - GST Receipts q3 - 2 September 2009

[4.00 p.m.]

Ms FORREST (Question) - My question is to the honourable Treasurer.  Treasurer, if the current recession is much shallower than once feared, will not the resurgence in GST receipts occur much earlier than predicted in the forward Estimates?  Is it a fact that a 1 per cent increase in growth is likely to lead to a $100 million increase in GST revenue over the period of the forward Estimates?

Mr AIRD - If in fact there is going to be an increase in GST receipts to the State, it is going to have to be worked through into the formula.  If it transpires that the Federal Government's level of GST receipts are up then we will be able to accept their forecast.  If they intend to change their midyear report, we can factor that in.  As to the actual amounts, the formula could change.  In mid-February there could be an adjustment to the formula used for distribution of revenues to the States from the Commonwealth Grants Commission.  If there is going to be a change in the formula we will know then.

Ms Forrest - If 1 per cent growth occurs that is equivalent to $100 million in GST revenue.

Mr AIRD - Let us work on facts and what the Commonwealth can forecast and then when we get -

Ms Forrest - You ignored their forecast for the next financial year.

Mr AIRD - Our forecast will be based principally on the Commonwealth Government's forecast.  You would understand why we would do that, because then it is real - it is actual data.

Ms Forrest - Yes, but you adjust them down by $50 million.

Mr AIRD - What is the point of the question?  Are you saying that there is going to be increased revenue to the State?  There may be.  It might go down.  We do not know.  If the point of the question relates to the nature of the forecasts, are there going to be variations in the GST receipts, you will not want to speculate about that until you know what you are going to receive.  If the formula does change from the Commonwealth Grants Commission then that can be affected as well.  How can you forecast what, for instance, the economy in New South Wales is going to do in the next six months?

Ms Forrest - Yes, but you are speculating that there's going to be $50 million less.

Mr AIRD - That can have an effect upon your overall GST revenues collected nationally.  It is then redistributed to the States.  Anyone can speculate according to how they view the world, what I have to deal with is the real world and the real allocations and that is when we make adjustments to the Budget, if needed.

Finance - GST Receipts q2 - 2 September 2009

[3.54 p.m.]

Ms FORREST (Question) - Madam President, the Treasurer carefully evaded the question.

Mr Aird - What?

Ms FORREST - I would like to ask another question of the Treasurer, Madam President.  Treasurer, you failed to address the issue that I was trying to get your comment on because in Estimates I asked the question about the sudden drop or the significant 17 per cent drop when GDP had slowed less over that same period and our Estimates committee was told that the GNE was the driver of the GST not the GDP.  Can you explain in the light of that why you made that suggestion when GNE has grown faster than GDP?

Mr AIRD - For the sake of clarity, I will go back and refer to what was said during Estimates and I will get back to the honourable member.

Finance - GST Receipts - 2 September 2009

[3.52 p.m.]

Ms FORREST (Question) - Madam President, my question is to the Treasurer.  Treasurer, the 2009-10 Budget projected a 17 per cent drop in GST revenue compared to the Budget 12 months previously.  At the same time GDP growth slowed to a much lesser amount.  During Estimates neither you nor Mr Challen were able to offer an explanation for this occurrence except to say that the gross national expenditure was the driver of GST receipts, not GDP.  The ABS figures show that in each of the six years ending 2007-08, GNE has risen faster than GDP.  Are you now in a position to offer an explanation for the catastrophic fall in GST receipts in view of the faster growth in GNE compared to GDP?

Mr AIRD - I thank the honourable member for her question, and it was multifaceted.  In essence, what the Government was alluding to and what we were doing is using the forecasts provided by the Commonwealth Budget and that was the basis of our forecasts.  If the Commonwealth choose to change their forecast then obviously we would factor those in but we have to use their data as a way of going forward in terms of the methodology of arriving at those figures.  Our Budget is based on the data that is available at that particular time and put to effect in terms of trying to forecast.

In the past there have been variations in that if there were going to be any variations, obviously the Commonwealth will indicate that when they produce their midyear report.

Irrigation Development - Funding - 1 September 2009

[2.53 p.m.]

Ms FORREST (Question) - My question is to the Treasurer.  Treasurer, $80 million has been committed by the State Government plus $140 million by the Australian Government, a total of $220 million, to progress large-scale irrigation development in the State under the aegis of the Tasmanian Irrigation Development Board - TIDB.  The $140 million from the Australian Government is not evident in the forward Estimates, although you did mention the Budget, however the Premier is now talking about a total expenditure of $400 million - a further $180 million.  Treasurer, is it a fact that the majority of the extra $180 million will come from farmers through reimbursement to the State Government by farmers and, if so, is this not therefore an exercise in double counting - that is, you count it once when you spend it and again when the farmer reimburses the Government?  Therefore how much of the $180 million represents reimbursements and how much extra will the Government have to find and where will these funds come from?

Mr AIRD - I thank the honourable member for her question.  I do not have the detail in relation to the revenue that may be raised to be invested in the irrigation projects in this State.  I would have to take advice on that from the minister.  It is true to say, though, that there is going to be an investment on behalf of those who wish to access some of the irrigation projects, but I do not know the detail of that.

Ms Forrest - Is it double-counting some of this money?

Mr AIRD - No, it would not be double-counting.  The State investment is clear, but I do not know about the other capital expenditure involved in that area from the non-government sector.  I will endeavour to find out for the honourable member.

Ms Forrest - Where's the Government's contribution coming from, though - the Treasurer's Reserve?

Mr AIRD - Through you, Madam President, that was a supplementary question.

Ms Forrest - No.  It was in the conclusion to the first question.

Mr AIRD - The amounts have been earmarked.  The Commonwealth and the State are very clear about their allocations.

Ms Forrest - In the budget papers?

Mr AIRD - I think you will find they are.  I will find out.

Housing - Home Share Program - 1 September 2009

[2.42 p.m.]

Ms FORREST (Question) - Madam President, my question is to the honourable Minister for Human Services.  Minister, the State Government has committed to building 150 new homes throughout Tasmania to assist low-income Tasmanians into home ownership.  I am informed that to be eligible to purchase one of these homes, applicants need to be a first home buyer, eligible for the Streets Ahead program and therefore earn under $50 000 per annum.  I am informed that very few, possibly one person only, in the Burnie region, who has made an application to the Home Share program, has met the eligibility criteria, although many more have applied.  Minister, is it a fact that the Home Share program is really only able to assist middle-income earners, rather than low-income earners as intended?  I would appreciate some further details which may need to be put on notice which I am sure you will inform me of.  Firstly, what is the number of Tasmanians who have been assisted into home ownership under the Home Share program?  What is the breakdown of the geographic locations of the successful applicants?  What are the successful applicants' income brackets?  What are details of the criteria that the applicants are required to meet and the source of income that can be used to determine the assessable income of applicants in support of their application?

Ms THORP - Madam President, I thank the honourable member for her question.  You are right, Home Share was introduced by the Tasmanian Government in December 2008 to assist Tasmanians with low to moderate incomes into home ownership.  You prefaced your question with 150 houses statewide.  That is a melding of two separate programs.  The 150 houses that you referred to, I imagine, would be the quick builds, 50 of which are in the first tranche and then another 100 later on.  The idea of those was to make sure there was a supply of affordable houses for first home buyers within the State.

The Home Share scheme is not directed only at those houses.  Anyone can apply for Home Share.  Of course there are criteria, but Home Share applies to any new house/land package.  So it could be, for example, a spec builder in Devonport who has a house/land package for sale.  Then the idea is that it goes in to be contracted and the credit union is involved, to go through whether or not they can afford it.  As you would know, up to 25 per cent of the equity can be provided by the Government, so they become an equity partner, and 75 per cent by the first home buyer, which of course means they can get up to the $25 000 package that the Federal-State governments have got, so there is a lot of incentive there for people to take up home share.  What has been really interesting is that we have had heaps of phone calls and when people have sat down with their financial adviser to work out whether or not they are eligible to get into the home share scheme they have found that they can afford to buy it without taking advantage -

Ms Forrest - I'm hearing the other side where they can't get it.

Ms THORP - That flies in the face of all the advice I have been given.  There is a range of criteria and my understanding is that for a single person on their own the income is about $50 000 and then, depending on the size of the family and the number of children, the amount goes up.  I can get the member the exact details of the eligibility criteria.  It has been a very interesting and unexpected outcome of the advertising for the Home Share scheme that people have gone into the credit union to inquire about Home Share, sat down with their financial adviser and discovered that they can go ahead with the loan arrangement and purchase the property they want without having to have any government equity in it at all, which is terrific.

Ms Forrest - Are you able to provide the number of people who have been assisted and their income bracket?

Ms THORP - Certainly, in terms of who is purchasing the quick builds, which is one program, or are you specifically interested in Home Share?

Ms Forrest - Home Share.

Ms THORP - I will undertake to do that.

Industry - Power Price Increases - 1 September 2009

[2.31 p.m.]

Ms FORREST (Question) - Madam President, my question is to the honourable Treasurer and Minister for Economic Development.  Treasurer, you would no doubt be aware that during two weeks in just this year major industry faced power price increases of over 600 per cent above the weekly average for the calendar year 2009 causing up to $2 million blips in the immediate monthly costs to these industries during very challenging economic times.  I am sure that you are also aware that that two weeks of June saw excessive volatility in power prices with the application of a price cap of $300 per megawatt hour with prices being charged at or near that price over this time, even during off-peak periods.  Treasurer, when did you become aware that Hydro was using such an aggressive strategy in bidding behaviour in the market?  Have you received an explanation of this behaviour?  If so, what was that explanation?  Do you agree that this action represents an unconscionable use of market power and that as a result a number of complaints have been referred to the ACCC and the National Energy Regulator?  Finally, can you inform the Council when the findings of the ACCC are expected to be released?

Mr AIRD - I thank the honourable member for her very reasonable questions.  I am going to 'broadband' them with the one answer, and it is the answer that I gave to a similar question in another place.

I cannot recall exactly when I was aware of the issue relating to the Hydro's pricing activity.  Obviously now that the matter has been referred to the ACCC I think that it is appropriate that I save any commentary until the ACCC reports on the activity.  That is the appropriate organisation to make an assessment of the arguments to be put forward by the Hydro.  I do not know the exact time when the ACCC is due to report, but I will endeavour to find out for the honourable member.

Public Account Act - Quarterly Returns - 1 September 2009

Ms FORREST asked a question of the Treasurer -

Section 19 of the Public Account Act 1986 requires the Treasurer to table in each House of Parliament, within 14 sitting days of that House, after 31 March, 30 June, 30 September and 31 December in each year a return specifying details of each order made pursuant to sections 10(1), 10(3), 11(2) and 12(1) during the preceding period of three months.  In each of the last three years, that is 2005-06, 2006-07 and 2007-08, only one quarterly return has been lodged and that has been the fourth quarter, April to June, and that occurred on 17 October 2006, 6 September 2007 and 30 September 2008.

(1)   Can the Treasurer confirm that all relevant orders pursuant to the Public Account Act 1986 were only issued during the last quarter in each of the last three years, hence the absence of other statutory quarterly reports?

(2)   Whilst section 19 is silent on the form of the quarterly section 19 report, such that it is not a requirement to record a date for each order, will the Treasurer ensure that future returns include dates on which the orders were made pursuant to section 19 of the Public Account Act 1986?

Mr AIRD replied -

(1)   The Government has fulfilled all its statutory obligations, in relation to section 19 of the Public Account Act 1986.  All relevant orders pursuant to the Public Account Act were issued during the June quarter in the years 2005-06, 2006-07 and 2007-08.  There were no requests for additional funds - orders - in any other quarters of these financial years.  Accordingly, there was no need for any other statutory reports to be tabled under the provision of section 19.

(2)   The Government has fulfilled its statutory obligations in relation to the tabling of orders in 2005-06, 2006-07, 2007-08 under section 19 of the Public Account Act 1986.  The section 19 returns in these years were tabled with section 12A supplementary estimates, in the June quarter.  The section 19 report specifies the quarter the relevant orders were made.

(3)   Generally, the Treasurer does not approve RAFs until the final quarter of each financial year when it is clear that the additional funding is required and cannot be met from within the existing resources of relevant agencies.  In fact, it is often the case that the Treasurer signs all RAFs on one day at a time very close to 30 June each year.  This is to ensure that every effort is made by agencies to meet any additional expenditure from within existing resources.

(4)   However, I have requested that the approval date of orders be included on future returns under section 19 of the Public Account Act 1986.

Payroll Tax Reform - 27 August 2009

[3.02 p.m.]

Ms FORREST (Question) - My question is to the Treasurer.  Treasurer, there has been an indication from the tax review boss, Ken Henry, at a meeting of the State Revenue Commission on 27 March 2009 that serious consideration is being given to lowering the payroll tax rate, broadening the base and collecting it via the Federal PAYG system.  Firstly, has the State Government made a submission, either formally or informally, to the Henry review in respect to the payroll tax reform and if so, what was the basis of the Government's submission?

Mr AIRD - I thank the honourable member for her question.  The Government's submission is on the web site, I think.  Generally, it was a broad submission, rather than getting into too many specifics, and in relation to payroll tax there are those who have a differing view to Dr Henry, and I know even in the business community in Tasmania there is a robust discussion going on about whether you lower the rate and broaden the base.

Mr Harriss - Good principle.

Mr AIRD - It meets one principle and that is equity and maybe efficiency.

I think it is going to be really interesting to find out what Dr Henry's review throws up in terms of the recommendations, and do not forget there will have to be other discussions.  If it does involve a regime of State taxation, there are a number of implications in terms of broadening the base, lowering the threshold, lowering the rate and I think we will wait until Dr Henry has concluded the review and wait for the recommendations and then see how we are going to respond to those.

I notice that the Liberal Opposition's Mr Turnbull has announced that he is not undertaking his review.  He had a parallel review because the attitude was - and I think correctly - that Dr Henry has got the information from all avenues - State through various industry groups, all the stakeholders who are involved in the review - and the Liberal Party in opposition are waiting.  I think that is the correct strategy and I think in terms of the jurisdictions we ought to wait until we see the draft recommendations and then work our way through the issues that that report will present to us.

Rail Services Takeover - 27 August 2009

[2.45 p.m.]

Ms FORREST (Question) - My question is to the honourable Treasurer, and I thank him for his compliment on the brevity of my speeches yesterday.  It would be nice if we could have answers of a similar length.

Members laughing and interjecting.

Ms FORREST - Treasurer, given that the deadline to take over the Western or Melba line rail services was not met by the Government, are you confident that the November deadline can be met, with the full takeover of rail services of Tasmania?  Furthermore, have you approached the Australian Government for funds to assist in meeting the purchase price?  If so, how are these negotiations proceeding?  Regardless of this, do you now have a full understanding of where the $32 million is coming from?

Mr AIRD - I thank the honourable member for her question.  As the minister has indicated, there have been extensions to the time lines so we can further explore ways to get a resolution to this matter.  I have to say it is probably one of the more complex issues that we have had to deal with.  There has been a discussion between the company and the State Government which has thrown a lot of complexities into the issue but we are making progress.  I do not know, as of today, where those discussions are but yesterday we were certainly heading in the right direction to get a resolution.  Once there is some resolution in terms of purchase of the assets then obviously Cabinet has to consider that and part of that discussion will be a method of financing any potential acquisition.  Until we get to that stage and work through the options that are available to the Government in terms of committing resources to purchase the assets, it has to go to Cabinet first and once that is undertaken then we will be able to make an announcement.

Finance GST Revenue - 26 August 2009

[2.54 p.m.]

Ms FORREST (Question) - My question is to the honourable Treasurer.  Treasurer, following on from my previous questions, will the upcoming midyear report reflect the anticipated change in GST revenue and if not, does the Treasurer expect to be in a position to release revised GST revenue estimates prior to March 2010?

Mr AIRD - I thank the honourable member for her question.  The midyear report would not reflect any change in the methodology of the Commonwealth Grants Commission because they will not be producing their report until February.

Ms Forrest - But you expect to be $30 million better off.

Mr AIRD - Under the draft guidelines issued so far that is true, but you cannot factor that in until it is actually put in place.

Ms Forrest - You are actually $50 million down for the year ahead.

Mr AIRD - We deal with real figures.  This is a change in the methodology, a change in the relativities.  There is still some work to be done in terms of the draft Commonwealth Grants Commission report on the relativities and we still are not guaranteed anything out of the relativities review, which will come down in February 2010.

There may be an opportunity under the legislation of the active budget responsibility that is being put in place.  There could be a reason for there to be an adjustment made under that legislation if in fact we have a report back from the Commonwealth Grants Commission prior to the election which allows it to be factored in, if the Secretary of Treasury is convinced it is a real figure and not a notional figure.  It needs to be very firm in terms of the methodology to actually change the forward Estimates but if the Secretary of Treasury determines that way, so be it.  In terms of the budget responsibility it will be factored in, if he so determines.

Commonwealth Grants Commission - Revised Formula q2 - 26 August 2009

[2.35 p.m.]

Ms FORREST (Question) - I have a supplementary question, Madam President.  If the Government has been working on the revised formula for a number years, five years as you say, why did you tell me in Estimates, two months ago, that the $50 million downward adjustment for GST research was needed in the year 2010-11 to reflect the State's revised share of GST revenue?  If the revised formula is to last five years, why do you not also adjust the 2011-12 and 2012-13 GST receipts instead of making only one adjustment to 2010-11?

Mr AIRD - What we do when we are preparing the Budget is use the Commonwealth's figures as published in its Budget to apply to our Budget.  At the moment it is a draft determination by the Commonwealth Grants Commission.  We will wait to see the final outcome before we make any adjustments.  Let me assure the honourable member that as soon as there is certainty and confirmation of any change in the forecast of revenue from the GST we will factor that into our forecast.

Commonwealth Grants Commission - Revised Formula - 26 August 2009

[2.34 p.m.]

Ms FORREST (Question) - Madam President, my question is to the Treasurer.  Treasurer, further to your answer yesterday to a question from the member for Nelson regarding GST revenue, when will the revised Grants Commission formula take effect and for what period will that formula apply?  You refer to Tasmania being better off by $30 million.  Is that $30 million per annum or $30 million over the period of the revised formula?

Mr AIRD - I thank the honourable member for her question.  The determination by the Commonwealth Grants Commission will be finalised next year in February 2010.  The figure of $30 million relates to the relativities as they apply for the financial year 2009-10 and the formula will apply for five years.

Vodafone - Government Assistance q3 - 25 August 2009

[2.53 p.m.]

Ms FORREST (Question) - I have a supplementary question, Madam President.  I thank the Treasurer for his consideration of this matter.

Mr Aird - It's very considered.

Ms FORREST - Will the Government consider reviewing their payroll tax regime is a separate question, but the question I asked in the first instance he did not answer.  That question was about assisting businesses which approach government for financial support, regardless of whether it is payroll tax assistance or other assistance, such as Vodafone, ACL Bearings, Swift - and there are probably others if I could bring them to mind.  What criteria are applied and are the same criteria applied across the board in assessing those requests?

Mr AIRD - I thank the honourable member for her question.  The honourable Leader for the Greens has asked for a formulaic approach to providing assistance to businesses and, quite frankly, one size does not fit all.  What we need to do, on a case-by-case basis, is to make an assessment about a particular business, its particular obligations and the particular benefits to Tasmania and we will continue to do that on a case-by-case basis.  Circumstances change between businesses depending on their requirements and with Vodafone, as an example, a seven-year commitment from Vodafone Hutchison Australia to use the facilities here in Tasmania is, I think, a substantial obligation and commitment.  It has an obligation also to further train their employees and we are going to provide some assistance there.

Ms Forrest - Swift hasn't given you a seven-year obligation - not even a seven-day obligation.

Mr AIRD - The situation surrounding Swift is that it was going to close its operations to undertake a review.  I thought that was counter-intuitive because how can you have a review if it is not actually operating?  I wanted to provide some assistance to allow it to undertake that review.  I have done that.  I have extended it.

Mrs Rattray-Wagner - And again.

Mr AIRD - Yes, because I wanted to give enough time to the company to present evidence in terms of providing assistance.  I want time for the Commonwealth Government to consider its position in relation to Swift.  There are other players in this instance.

Ms Forrest - So what criteria are around this?

Mr AIRD - It depends on the nature of the business.  The bottom line in terms of what we are trying to do here is to protect Tasmanian jobs.

Mr Martin - Why some jobs and not others?

Mr AIRD - Someone said that we did not provide assistance to ACL Bearing Company.  That is not true.  We offered it $4 million but it did not meet the conditions of that loan.

Mr Dean - They met the Federal Government's conditions.

Mr AIRD - That is their choice.  But the fact is that we offered a loan facility to ACL Bearing of $4 million.

Mr Wing - With personal guarantees by the directors.

Mr AIRD - Of course.  Why wouldn't you?  I think that is the response.  I have to look after the taxpayers' money and justify spending it.

Mr Dean - The Federal Government has to as well.

Mr AIRD - We have been through that and I have explained that position before.  There will be other calls and the fact is that we will be making an assessment on a case-by-case basis.  We have the overall obligation to try to protect as many Tasmanian jobs as we possibly can and make sure that we are providing assistance to businesses which are sustainable into the longer-term future of the State and can assist in developing the Tasmanian economy.

Vodafone - Government Assistance q2 - 25 August 2009

[2.48 p.m.]

Ms FORREST (Question) - My question is to the Treasurer and is following up from my earlier question.  Treasurer, you mentioned the symbiotic relationship between small and big business.  Regarding the recent cases of the businesses seeking financial assistance from the Government, Vodaphone in particular, and the earlier case of Stepping Stones, a childcare operator who not only employ a significant number of Tasmanians but also enable many Tasmanians to remain employed, did the Government apply the same criteria when assessing each request for support and if so, what were the criteria?

Mr AIRD - Could I say in relation to this issue that after it became public and I gave a very clear indication about the Government not being prepared to prop up Stepping Stones, my phone rang hot, it rang hot.  Do you know who from?  Other for-profit childcare services and they congratulated the decision that we had made.  There are a number of organisations that pay payroll tax who are for-profit childcare providers and could I go through some of the evidence here in terms of payroll tax, treatment of childcare services.  In Tasmania non-profit childcare services that are considered charities are exempt from payroll tax under section 48 of the Payroll Tax Act 2008.  Not-for-profit childcare services offering educational services may be considered charities under certain circumstances.  For-profit and non-profit childcare services that are registered as schools or education services, such as those run by private schools, are exempt from paying payroll tax under section 49 of the Payroll Tax Act 2008.  For-profit childcare services, not registered as schools or education services, are subject to payroll tax.  These services are not required to pay payroll tax until their taxable wages exceed the $1.01 million tax-free threshold available to all payroll tax payers.

Ms Forrest - It completely ignores the fact that this company has provided service in areas where no-one else would go and the west coast in particular.

Mr AIRD - Stepping Stones is a significant business which has many different costs of operation.  The payroll tax position of for-profit childcare operators is consistent with that applying to businesses in other States.  There is no difference in Tasmania or Victoria, for instance.  Stepping Stones is a for-profit business and just like any other business, it should budget to meet all its costs of operation including its tax obligations.

Ms Forrest - But what if they pull out of these places?

Mr AIRD - The company's payroll tax obligations are consistent with State legislation and it is entirely appropriate that neither myself nor the Premier nor any other politician have any capacity to change these tax obligations.

Due to tax privacy legislation, I have been unable to get a detailed understanding of the business tax obligations.  I understand that approaches have been made to the company to obtain permission to review their payroll tax position, but the business has not been prepared to provide such approval.  I understand that the business has not approached the Victorian Government to complain about its payroll tax obligations in that State.

Any suggestion that the requirement of the company to meet its payroll tax obligation is the one and only reason the business had to close some of its operations is just not plausible.

Madam President, there is a very clear indicator that this is a for-profit organisation. This company was directly seeking payroll tax relief and it runs similar businesses in Victoria and it has not approached the Victorian Government for any similar assistance.

Ms Forrest - Do they provide services to remote areas where we can't get anyone else to go?

Mr AIRD - If the honourable member wants to encourage Stepping Stones to provide me with all the information about their business obligations, including their payroll tax obligation in Tasmania, then we might have a bit of information to work on.

Vodafone - Government Assistance - 25 August 2009

[2.34 p.m.]

Ms FORREST (Question) - Madam President, my question is to the Treasurer and Minister for Economic Development.  Treasurer, the TCCI was reportedly flabbergasted by the financial sweetener provided to Vodafone to ensure its ongoing commitment to Tasmania.  Several of my constituents have also expressed concern at the deal.  Will the Treasurer undertake to ensure that none of the $3.5 million will be used to sponsor the English cricket team currently under a contract with Vodafone?  If you are unable to ensure that no funds will flow to the English cricket team, will you secure a commitment from Vodafone to display the name 'Tasmania' on team clothing, given the Treasurer's deep-seated belief in the power of branding which he has clearly demonstrated in this Chamber on at least one prior occasion?

Mr AIRD - I thank the honourable member for her question.  I understand that the Leader of the Greens has said that the Government is just picking winners so perhaps we should be backing the English cricket team on that basis alone and make sure that we get a winning team.

I think this is a great deal for the workers at Vodafone, it is a great deal for the area where Vodafone is situated in Kingston and it is a great deal for the economy of Tasmania.  It is quite surprising that this decision has been criticised by anyone, when you secure a seven-year deal for the operations of Vodafone, and when you secure 400 jobs with a commitment to an extra 100 jobs.  Part of the assistance that the Government will be providing will be assisting in the training for the people working at Vodafone.  I think the criticism from the TCCI is way off the mark.  In fact if you looked at the payroll tax that would have to be forgone if Vodafone closed up, you would see that we are still going to be in a better net position than we would have been had we not provided the assistance.

Mr Martin - The flow-on effect of 400 salaries would be important for the economy, wouldn't it?

Mr AIRD - Absolutely.  I appreciate this timely interjection from the honourable member.  I do not always appreciate his interjections but this time it raises the point that the assistance to Vodafone is assistance to small business.  I have said it many times; there is a symbiotic relationship between small business and larger businesses.  The value to small business cannot be underestimated given that there will be 500 people working in the Kingston area.

I think it is going to be well-received by the smaller businesses working in that area.

Mr Martin - You would have liked Mr Rockefeller's comments.

Mr AIRD - I did.  Particularly when I know that Mr Rockefeller does not normally enter public debate.  The fact is that Vodafone Hutchison Australia will inject between $20 million and $25 million in wages alone each year for the next seven years into the local economy.  That means that the financial support package could be as little as $1 000 per job - per person.  We have to highlight the fact that the Government does have a role in the economy and that we will be pursuing particularly those businesses which can show that they have a long-term sustainable future.

Not all businesses can display that.  I will be involved in other areas of supporting jobs around Tasmania to ensure that we get value for money in terms of supporting jobs and supporting the economy.

The assistance will not be going to sponsorship I can guarantee you that.  Vodafone, when they were a single entity, had a reputation as being an exemplary employer and I am sure that Vodafone Hutchison Australia will continue that tradition of looking after their workers.

Mental Health - Data Collection - 25 August 2009

Ms FORREST asked a question of the Leader of Government Business in the Legislative Council -

(1)   Given that the recently amalgamated Mental Health and Statewide Services undertake significant data collection from the community sector and provide reports to the Health department -

(a)   Will the department publish this data in an easily accessible format online?

(b)  if so, when; and

(c)   if not, why not?

(2)   Will the department provide any financial support to community sector organisations to assist them in the collection and recording of this important data?

(3)   The Maximising Recovery Panel - MRP - is a multidisciplinary panel established to provide a centralised point for referrals to enable systems to operate in an efficient manner.  At a recent workshop investigating the effectiveness of the MRP it was revealed that this model had not been costed -

(a)   Will the MRP model be costed and if so when; and

(b)  if not, why not and will other models be considered and/or costed?

(4)   With an increasing focus on promotion, prevention and early intervention - PPEI - with regard to mental illness, will the Government invest in an increased focus on PPEI including a sustained social marketing campaign, focused on inclusion for people with mental illness, such as has occurred in the United Kingdom with the See Me campaign in Scotland, and if not, why not?

Mr PARKINSON - Madam President, as the answer is almost four pages long, I seek leave to have it incorporated in Hansard.

Leave granted.

The answer read as follows:

(1)   Mental Health and Statewide Services collects data from community sector organisations for two main reasons - reporting to the Australian Government and as a requirement of Service Level agreements established with the individual CSOs.

Community sector-related data is provided to the Commonwealth through the Mental Health Establishments National Minimum Dataset and the Residential Mental Health Care National Minimum Dataset.  Data provided relates to residential beds, expenditure and establishment information.  No CSO activity data is published.  This data is published through the Mental Health Services in Australia Report.

Data is also published in the National Mental Health Report - most recent being 2007 - and in the Report on Government Services - ROGS 2009, released 31/1/09.  These reports are available in hard copy form and online through the Australian Government Department of Health and Ageing - www.health.gov.au - and the Productivity Commission - www.pc.gov.au.

It should be noted that data identifying individual community sector organisations is not published.

CSO partners supply Mental Health and Statewide Services with data knowing that is being collected for publication nationally through the abovementioned collections.

Any moves to publish data specific to individual CSOs, including activity-related data, would be carefully considered initially through existing national committees such as the Mental Health Information Strategy Subcommittee, and in turn with community sector organisations before any decisions were made.  MHSS is working closely with community sector representatives through a data management committee with a view to improving data collection and reporting.

The DHHS Annual Report lists grants to funded CSOs.

(2)   Existing funding arrangements cover the need to provide reporting data to the DHHS, and any plans to increase reporting levels would be carefully considered from a range of perspectives including potential cost and resource implications for CSOs.  MHSS will continue to work with and support CSOs in relation to improved data collection and use of technology.  Any issues relating to resources will be managed in the context of service level agreement negotiations.

(3)   The Bridging the Gap funding initiative of 2004 put in place a reform agenda for Tasmanian mental health services.  In particular, this initiative supported a significant investment in residential rehabilitation and recovery programs through CSOs.  The Maximising Recovery Panels - MRPs - comprise mental health staff and their salary costs are already covered within the MHSS budget; although it should be noted that both the north and north-west have now moved to CSO membership on the MRPs.

The MRPs are an important mechanism for ensuring people with mental illness are able to access appropriate recovery, rehabilitation and supported accommodation services funded by public mental health services and provided by the mental health community sector.  As part of its ongoing service development MHSS is continually working to improve client access to care and support, and regular review of the MRPs is a key component of this process.  Opportunities for enhancement may consider cost components and alternative models, however this will be determined by the work occurring with key stakeholders.

Ultimately MHSS needs to have in place an effective means of ensuring that clients are able to access appropriate places in CSOs.  The recently held MRP workshop, attended by a number of CSOs, was aimed at identifying how the current process could be made to be more effective and to consider whether there are other models that could be used to achieve the same outcome.  This work is continuing.

Sale of TOTE Tasmania q3 - 9 July 2009

[2.58 p.m.]

Ms FORREST (Question) - Madam President, I have another question to the Treasurer.  I recently asked whether any orders pursuant to section 19 of the Public Account Act with regard to the first quarter of this year were tabled, and the answer was no.  A number of payments for legal and financial advice regarding the divestment of TOTE were made in the first quarter, so why was an order not tabled at the appropriate time to describe those payments?

Mr AIRD - I thank the honourable member for her question.  What happens in relation to these matters is that agencies work within their budgets for as long as it is possible and then, if there is a need to request additional funds, those tend to be approved in the last quarter of the financial year.  That is the way it works and that is what has occurred and that is why the answers have been quite consistent all the way through.  We always seek to comply with the Public Account Act, as I say.

Sale of TOTE Tasmania q2 - 9 July 2009

[2.57 p.m.]

Ms FORREST (Question) - Madam President, my question is to the Treasurer.  As the costs associated with the divestment of TOTE was an unanticipated cost to the Government in 2008-09 Budget, were payments made to the legal and financial advisers in relation to the divestment of TOTE pursuant to the Public Account Act?

Mr AIRD - I can assure the honourable member that all payments made are in compliance with the Public Account Act.

Health - Swine Flu - 9 July 2009

[2.48 p.m.]

Ms FORREST (Question) - Madam President, my question is to the Leader.  For members of the community with underlying health conditions that include those illnesses that place people at a higher risk of complications of the H1N1 virus and those taking immunosuppressive therapies, if they have visited a swine flu clinic and been advised to remain in home quarantine, how are these people to access health care for their underlying medical condition, especially when they are advised not to go near their GP during this period?

Madam President, I know things have changed since I posed this question.  I sent this question through the Leader's office on 17 June when there was a significant issue at that time for people in my electorate who had visited swine flu clinics with underlying health conditions, and then were told they could not go to their GP or to the hospital for treatment of those conditions.

Mr PARKINSON - I thank the honourable member for her question and the speech that followed.  On Wednesday 17 June 2009 a decision was made at the national level to move to a new response phase of protect.  Tasmania moved to the protect phase on Monday 22 June 2009.  The protect phase has been included as an annex to the Australian Health Management Plan for Pandemic Influenza and detailed information can be accessed via the Australian Government Department of Health and Ageing web site, www.health.gov.au.  Under this new phase, the focus is on the identification and early management of people with a high risk of moderate-to-severe illness as a result of the human swine flu infection.

GPs have been informed and suitably prepared - for example, with standard personal protective equipment - to see their patients as normal and consequently, people needing medical assistance with underlying illnesses, including immunosuppression, will have the same level of access to their GP as they had previously.

Hospital Pain Clinics - Waiting Times - 9 July 2009

[2.44 p.m.]

Ms FORREST (Question) - Madam President, this question is to the Leader.  I know there is not an answer but I am going to ask it anyway because I asked the question last week.  It is not a difficult question, I would have thought.  Madam President, I asked for information about the waiting times for pain clinics in our three major hospitals - the North West Regional Hospital, the Launceston General Hospital and the Royal Hobart Hospital.

Mr PARKINSON - Point of order, Madam President.  The member stands up to ask a question and prefaces it by saying she knows there is no answer.  Why is she being permitted to ask the question?  It is waste of time.

Madam PRESIDENT - Did the honourable member direct the question to the Leader's office last week?

Ms FORREST - Yes, Madam President.

Madam PRESIDENT - Did you get a response about it in writing from the Leader's office?

Ms FORREST - They had received it and they were working on it.

Madam PRESIDENT - They are working on it.

Ms FORREST - Yes, but I still have not got it.

Madam PRESIDENT - We have no answer, so one presumes under the protocols we use, as soon as the Leader's office has the answer, as we are not sitting they will direct the answer to the member's office.  Is that the presumption, Mr Leader?

Mr PARKINSON - That is correct, Madam President.

Madam PRESIDENT - Thank you.  Any other questions from the Floor?

Sale of TOTE Tasmania - 9 July 2009

[2.40 p.m.]

Ms FORREST (Question) - Treasurer I asked the question yesterday and you said you would get the information for me about the dates of payment of the costs of the TOTE sale.  My question, Madam President, was about the dates on which the legal and financial advisers and the administrative costs were paid for the divestment of TOTE.

Mr AIRD - I apologise to the member.  I had the information and forgot to give it to her.  I will now correct that error.

Ms Forrest - You can table it.

Mr AIRD - Madam President, I seek leave to table the answer and have it incorporated in Hansard.

Leave granted.

The answer read as follows:

The actual costs for the Divestment of TOTE Tasmania to 30 June 2009 were as follows:

Wiltshire Rail Line Funding - 9 July 2009

[2.35 p.m.]

Ms FORREST (Question) - Madam President, in Estimates with the Minister for Infrastructure I raised the question about the Federal Government money allocated for the Wiltshire rail line and sought clarification that if the funds were not spent on upgrading the Wiltshire line these would be retained for infrastructure on the north-west coast.  I was assured at that time, and it is recorded in Hansard, that that would be the case.  We now know from media reports that that decision may change.  I know it is Federal Government money so I am asking you as Treasurer what you will do in seeking to have the Federal Government ensure that that money is retained and spent on the north-west coast on infrastructure?

Mr AIRD - I thank the honourable member for her question, and it is an important question.  Due to the changing circumstances in relation to the ownership, control and management of rail in Tasmania there was a request made to change some cash flows in terms of the priority areas.  I assure the honourable member that I still believe that the Wiltshire link needs to be developed.  I think that in the future there will be a requirement for that rail and, particularly as Minister for Economic Development, I want to see that line upgraded to a standard that can support industrial development on the north-west coast.  My expectation would be that there still needs to be further discussions with the Commonwealth about that but I can assure the honourable member that there may have been some reallocation of cash flows in the shorter term but I have not lost sight of the longer-term aspiration of supporting the Wiltshire link.

Mental Health Disorders - Care of Adults - 8 July 2009

[2.49 p.m.]

Ms FORREST (Question) - My question is to the Leader.  With regard to the provision of care for adults with chronic mental health disorders and the lack of supported accommodation in the north west for 24-hour care, what measures are being taken by the Government to address this issue and ease some of the burden placed on elderly parents and other family members who provide this care currently?

Mr PARKINSON - I thank the honourable member for her question.  Madam President, the State Government's investment in supported accommodation to meet the needs of adults who have chronic mental health disorders has increased significantly as a result of the Bridging the Gap funding initiative.

In the north-west, 24 beds are available - 12 in the Richmond Fellowship facility at Ulverstone and 12 at Anglicare's Curramore residential service at Devonport.  Each of these facilities offers up to 24 months' supported accommodation within a therapeutic environment designed to prepare clients to live within a normal community setting.  Clients are further supported by case managers from Mental Health Services.  In addition, Mental Health Services brokers packages of care and recovery-based programs to provide in-home and community-based support for clients and their carers in the north-west through Family Based Care, Anglicare, Richmond Fellowship North West and Aspire.  Respite for loved ones and carers can also be accessed through the Australian Government-funded Home and Community Care program and the National Respite for Carers program, as well as by residential care homes.  Mental Health Services continues to monitor demand for these services in order to ensure that there are suitable options for vulnerable mental health clients in relation to supported accommodation.

Tourism - Online Booking Service - Bus Tour - 8 July 2009

[2.44 p.m.]

Ms FORREST (Question) - Treasurer, are you aware and do you support the fact that V3, the company that has the arrangement as the on-line booking operator, is offering visitor centres $200 for every operator signed up to front desk and that they were the ones who were involved in the bus tour around the State?

Mr AIRD - Was the question, was I aware?

Ms Forrest - Yes, and do you support that?

Mr AIRD - The answer is, no, I was not aware.

Ms Forrest - Would you support that sort of activity?

Mr AIRD - I am just not aware.  Nothing has been brought to my attention about this matter at all.  If the matter is brought to my attention, obviously I can provide some answers.  I reiterate, these questions should be directed, quite properly, to the Minister for Tourism.

Tourism - Online Booking Service - Tender Process - 8 July 2009

[2.43 p.m.]

Ms FORREST (Question) - Treasurer, Treasury is interested if not involved in tender processes.  Was an open and transparent tender process used to engage an on-line booking service for Tourism Tasmania?

Mr AIRD - Madam President, I thank the honourable member for her question.  I am not the Minister for Tourism.  I do not know the processes that the agency went through.  I can check it out for the honourable member and I will make sure that we provide the information.  But I do not know.  It is not my responsibility, again, just to make a point, and my expectation is that, obviously, agencies will adhere to Treasury's instructions.

Tourism - Cost of Bus - 8 July 2009

[2.37 p.m.]

Ms FORREST (Question) - Madam President, I fear I may get a similar answer.  Treasurer, can you provide the cost of the bus for the roadshow used by Tourism Tasmania earlier this year and can you provide details of whether a tender process was used to engage V3 or FrontDesk as the provider of on-line bookings?

Mr AIRD - I thank the honourable member for her question.  I am not responsible for every portfolio area in terms of detail.

Ms Forrest - No, but you hold the purse strings.

Mr AIRD - That is true but I do not actually hold them.  I oversee the process.  I am not responsible, as with the previous question.  These allocations are made to various portfolio areas or money is spent in various portfolio areas and it does not mean that I am micro-managing every portfolio.

Mr Martin - But it's your portfolio.

Mr AIRD - I have three portfolios of my own and I think that is enough, Madam President.

Ms Forrest - Don't you keep an eye on the tender processes, though?

Mr AIRD - Let me look after the three that are in my jurisdiction -

Mr Martin - My question was your portfolio.

Mr AIRD - No, it is not actually.

Mr Martin - It's Economic Development.

Mr AIRD - You misunderstand the process.  Nonetheless, Madam President, I do not have the detail for the honourable member.  It is not within my portfolio.

Sale of TOTE Tasmania - 8 July 2009

[2.35 p.m.]

Ms FORREST (Question) - Madam President, regarding the question asked during Estimates about the cost of the TOTE sale process, legal adviser costs to date were $880 000; financial advisers, $1.063 million; and administrative, $15 000.  Can the Treasurer advise on what dates those payments were made?

Mr AIRD - I thank the honourable member for her question.  I do not want to disappoint her but I will have to take that question on notice.

Ms Forrest - How long will that remain on notice; the length of time the other ones are on notice?

Mr AIRD - I will do my level best to find out the details of that.

Ms Forrest - So tomorrow I will ask you again.

Mr AIRD - If I have not provided an answer between now and then, yes.

General Purpose Grants - 18 June 2009

[3.00 p.m.]

Ms FORREST (Question) - Madam President, my question is to the honourable Treasurer.  Treasurer, as the general purpose grants account for approximately 45 per cent of the State's revenue, does Treasury undertake an independent assessment of the risks and sensitivities to Tasmania, or does Treasury merely take the projected figures as those provided by the Federal Government?

Mr AIRD - Regarding the general purpose revenues made by the Commonwealth Government to the State Government, we take those general purpose grants and apply them to the Public Account.  I am just trying to work out the import of the honourable member's question.

Ms Forrest - Do you undertake your own assessment of the risks and sensitivities for Tasmania rather than relying on the Federal Government's assessment of Tasmania's situation?

Mr AIRD - Are you referring to the analysis made by the Commonwealth Grants Commission?

Ms Forrest - No, I am talking about what Treasury does in looking at the risks and sensitivities around the general revenue payments that you receive.

Mr AIRD - What type of risks and sensitivities are you referring to?

Ms Forrest - Anything that could impact on the amount that you get for Tasmania, how it could change.  I don't need to tell you your job, surely.

Mr AIRD - There are judgments made about the future revenues, but we base our future revenues on the basis of what the Commonwealth puts forward to the States.  In terms of an analysis of GST revenues and so on, we take note of the forecast by the Commonwealth Government.

Ms Forrest - But does the Treasury undertake its own assessment of the risks and sensitivities?  No, you do not.

Public Account Act - Quarterly Returns - 18 June 2009

[2.58 p.m.]

Ms FORREST (Question) - Madam President, my question is to the honourable Treasurer.  Treasurer, as no return has been tabled under section 19 of the Public Account Act, and  16 June being the fourteenth sitting day since the end of the March 2009 quarter, have no orders been made under sections 10, 11 or 12 of this act?

Mr AIRD - The answer to the honourable member's question is, no, there have not been.

TOTE Tasmania Sale - 18 June 2009

[2.41 p.m.]

Ms FORREST (Question) - Madam President, my question is to the Treasurer,  Treasurer, given that the projected earnings before interest, tax, depreciation and amortisation has been indicated to prospective purchasers as approximately $68 million, more than double the figure previously earned by TOTE, could the Treasurer make available to the Legislative Council at the time of the debate of the TOTE Tasmania (Sale) Bill 2009 all relevant information in his possession regarding the year-to-date performance of TOTE Tasmania, enabling the Legislative Council to make an informed decision about the appropriateness or otherwise of the potential sale of TOTE?

Mr AIRD - I do not comment about any aspects of the TOTE sale.  It is being undertaken with due probity and with due -

Ms Forrest - I am talking about the information that was provided to the Council.

Mr AIRD - At the conclusion of the sale I will be announcing the sale price.  I am not going to be commentating on the process from here until that conclusion.

Ms Forrest - I am talking about before we debated the bill.

Mr AIRD - We have debated the bill.

Ms Forrest - I know but did we have all the information, that was the question, about their performance.  Clearly not.

Fiscal Strategy - 17 June 2009

[2.49 p.m.]

Ms FORREST (Question) - Treasurer, can you explain why the reporting of the fiscal strategy targets which identifies interim fiscal strategies for this year's reporting have not included the actual figures for 2007-08 and the estimated outcome for 2008-09 as has been the case in the past?  Further, was the four-year rolling average of identifying the Government's fiscal strategy targets dropped from this year's reporting to enable an on-target tick to be given to this interim fiscal strategy when the rolling four-year average would not have presented an opportunity?

Mr AIRD - I thank the member for her question.  It is evident in the budget papers what we have done with the interim fiscal targets and strategy.  In terms of reporting this, I have not got the immediate budget paper in front of me so I would need to go back and look at the specific instance that the member has raised.  As soon as I have done that I will clarify it for her.  Basically, as we have indicated, there have been dramatically changed circumstances since the establishment of the last fiscal strategy and it deserved to require an interim fiscal strategy.

Ms Forrest - Yes, but you could have still left the same measures there, it just would have meant that you would not have got a tick at the end of it.

Mr AIRD - The member might want to rewrite some of the budget papers if that is her desire.  I will let her do that.  But let us face it, these are the most comprehensive and transparent budget papers in Australia.

Legislative Council Members - Staff Entitlements - 17 June 2009

[2.38 p.m.]

Ms FORREST (Question) - My question is to the Treasurer.  Treasurer, we are all aware that as members of the upper House we all have one FTE position available.  We can use that to staff our offices and we might not choose to use the full-time allowance, we might have a 0.6 or 0.8, and use the rest for research and other purposes.  The resource allowance is used for resourcing our office in other ways - equipment as well as personnel, is my understanding of that.  Are you telling me that the entire funding for the position that this 0.5 fills is from that resource allowance, which I understand is only $5 000 a year?

Mr AIRD - I will just take some advice on this.

Ms Forrest - Sorry, $10 000 a year.

Mr AIRD - Can I take that on notice?  I obviously need to take advice on this.

Mr Martin - I think you'd better.

Mr AIRD - I will, but there is no intention here to mislead.  That was my understanding.  If I have a misunderstanding I will clarify the matter at the conclusion of question time.  I will take further advice.

Rail Services -West Coast Melba Line - 17 June 2009

[2.31 p.m.]

Ms FORREST (Question) - Treasurer, as Pacific National has now formally rejected the offer from TasPorts to extend the lease at its concentrate shed and mineral-loading equipment site at the Burnie port and according to TasPorts CEO, Robert Barnes, is playing legal games, what action is the Government taking to ensure the west coast Melba line remains functional beyond 30 June, in 13 days' time, and has the interim takeover by TasPorts been considered?  If not, what options are being considered?

Mr AIRD - I thank the honourable member for her question.  It is a very pertinent question.  One of the interesting facts, Madam President, in relation to this matter is that the Melba line is profitable and so you have to ask yourself why would you not operate on a profitable line?  Nonetheless, I do not have the answer to that question.

Ms Forrest - But if TasPorts could operate on it, a profitable line, or somebody.

Mr AIRD - We have not reached the stage of any level of intervention.  What we do know is that Pacific National executives are coming to Tasmania tomorrow and there will be some very serious discussions with them.  The other fact that we do know is that Pacific National want to leave Tasmania.  We have to understand that, put it in perspective and work out the best way forward.

Ms Forrest - There is less than 12 days from tomorrow's meeting to sort out an arrangement.

Mr AIRD - We are fully aware of time lines.

Ms Forrest - So are the people of the west coast.

Mr AIRD - We are as keen as anyone else to sort this out.  I still very firmly believe that, in terms of Asciano and Pacific National's attitude to this issue, it could have been better but we have to go into the discussions tomorrow showing good faith and seeking a resolution to the problem to ensure that we get a sustainable rail operator in Tasmania who actually wants to be here.  We will have the discussions with Pacific National over the next couple of days, see what occurs from that and once we have concluded those discussions we will be able to make some decisions about where we go in the future.

Public Account Act - Quarterly Returns - 9 June 2009

[2.41 p.m.]

Ms FORREST (Question) - Treasurer, regarding the section 19 of the Public Accounts Act return for the period ending December 2008, today is 14 sitting days since the end of that period and no return has been tabled today.  No notice was tabled on 12 March for the period ending September 2008.  Is it the case then that there have been no orders under sections 10, 11 and 12 of the Public Accounts Act since September 2008?

Mr AIRD - Yes, that is correct.

Water and Sewerage Reform - 9 June 2009

[2.32 p.m.]

Ms FORREST (Question) - Treasurer, with regard to the water and sewerage reforms for business and industry that provide sewerage and waste water treatment for the towns in which they are situated under agreement with local government, have new arrangements been made with these companies, will these companies be remunerated for providing these services, and are you able to ensure that these companies will not pay twice for providing the service and then paying for the service through billing by the corporations?

Mr Aird - Madam President, I really did not understand the question.

Ms Forrest - Were you listening to the first bit?

Mr AIRD - Yes, I was paying attention.  If the honourable member would like to put it on notice I will get her an answer.  I did not understand the connection between the first part and the second part of the question so I just need to look at it.

Ms Forrest - Regarding the companies that are providing water and/or sewerage services in agreement with the council for that particular town, when the system is taken over by these new corporations have new agreements been progressed with these companies?  It happens on 1 July.

Mr AIRD - It is up to the companies to work that through, not for me to know.  I thank the honourable member for her supplementary question in which she explained.  Basically the corporations are responsible for those arrangements.  I would expect them to deal with their contractual obligations in a way which fulfils those obligations.  If they need to have renewed contracts they will do so.

Public Account Act - Quarterly Returns - 28 May 2009

[2.47 p.m.]

Ms FORREST (Question) - I re-ask the question from yesterday in relation to the tabling of public account reports under the Public Account Act.  In the case of sections 11(2) and 12(1), Parliament needs to approve additional expenditure.  My question to the Treasurer yesterday was, in each of the last three financial years, 2005-06, 2006-07 and 2007-08, only one quarterly return, as required under section 19 of the act, has been lodged and that was in the fourth quarter, April to June, and occurred on 17 October 2006, 6 September 2007 and 30 September 2008.  Can the Treasurer confirm that all relevant orders pursuant to the Public Account Act, were only issued during the last quarter in each of the last three years?

Mr AIRD - I thank the honourable member for her question.  I have asked for further advice from Treasury in relation to this matter.  My understanding of the provisions that you are referring to relate to requests for additional funding which are generally done in the last quarter of the financial year.  In other words, very few are made - in fact, I cannot think of any off the top of my head at any earlier stage.  That is why the return would only relate to the last quarter of the financial year.

Ms Forrest - Can you clarify that though?  It seems surprising to me that all those additional expenses are in the last quarter of each of those years.  Can you name any occasion when funds have been allocated at different times?

Mr AIRD - It depends on the nature of the requests for additional funds, but basically the method of those requests is that they are made in the last part of the financial year because that is generally when agencies start running out of funds, including this agency that we happen to be in now.  It does happen, and if they run out of funds and need further assistance to meet their operating expenses or additional costs that are unforeseen, or whatever the reason, it is done in the last quarter of the year generally.  I will go back and ask, but I cannot recall any.

Ms Forrest - The absence of dates on those reports makes it very difficult to ascertain this.

Mr AIRD - That is a retrospective notification.  The honourable member for Huon and I have discussed this process in the past and we are looking at potential amendments, in fact a fresh act to clarify some of these issues where the reporting is clearly identified for whatever reason.

Public Accounts Act - Quarterly Returns q2 - 27 May 2009

[2.44 p.m.]

Ms FORREST (Question) - Treasurer, I refer again to section 19 of the Public Account Act and the requirements to table details of each order made by the Treasurer.  Whilst section 19 is silent on the form of the quarterly section 19 report, such that it is not a requirement to record a date for each order, is it not incumbent on the Treasurer to supply the date of the Treasurer's orders even if not required to fully discharge the statutory responsibilities, then to advance the cause of transparent and open government to which you and the Premier have such a fervent commitment?

Mr AIRD - I thank the honourable member for her question.  I have no interest in withholding any information which relates to such returns.  Because the honourable member goes into some level of detail in terms of those types of returns, I said to her and to the House that I would check out the nature of those returns and get an answer to the member.

Ms Forrest - It does not record a date of any of these orders; there is no date in the orders that they are tabled.  It makes it very difficult to track.

Mr AIRD - I will make sure that I get an answer for the member.  I do not think this goes to the heart of much great importance in terms of the operation of the Government.

Public Accounts Act - Quarterly Returns - 27 May 2009

[2.39 p.m.]

Ms FORREST (Question) - Madam President, my question is to the Treasurer.  Treasurer, section 19 of the Public Account Act requires the Treasurer to table in each House of Parliament, within 14 sitting days of that House, after 31 March, 30 June, 30 September and 31 December in each year a return specifying details of each order made pursuant to sections 10 (1), 10 (3), 11 (2) and 12 (1) during the preceding period of three months.  In each of the last three years, that is 2005-06, 2006-07 and 2007-08, only one quarterly return has been lodged and that has been the fourth quarter, April to June, and that occurred on 17 October 2006, 6 September 2007 and 30 September 2008.  Can the Treasurer confirm that all relevant orders pursuant to the Public Account Act were only issued during the last quarter in each of the last three years, hence the absence of other statutory quarterly reports?

Mr AIRD - I think the honourable member is referring to requests for additional funds.  Is that correct?  I am trying to seek some clarification.

Ms Forrest - Sections 10, 11 and 12.

Mr AIRD - I will take that question on notice.  I need to be clear in my own mind about the indications of those sections.

Ms Forrest - I can tell you which ones were tabled when.

Mr AIRD - Once I have done that I will be able to clarify the matter.

Treasury - Leaks of Confidential Information - 26 May 2009

[3.27 p.m.]

Ms FORREST (Question) - My question is to the Treasurer.  Treasurer, what measures have you taken to control the extremely damaging leaks of confidential information from your department, above and beyond those implemented following the most recent leaks and why do you believe they have occurred?

Mr AIRD - I thank the honourable member for her question.  Regarding the motivation of people to engage in this type of behaviour, I cannot speak for the individual.  If we find out who the individual is, or individuals, that would be a very good question to put to them.  Having said that -

Mr Wilkinson - You're not just going to sit back and let it happen.

Mr AIRD - No, I am not.

Ms Forrest - What are you doing about it?

Mr AIRD - I have asked the agency to increase the level of security.  There is a range of things that have been put in place which I hope will increase the level of security.  We have to leave no stone unturned in trying to prevent these types of things.  It is a very awkward situation in Treasury and this is why I am so critical of individuals engaging in this type of behaviour because it serves no public purpose.  It damages the reputations of others who are working with this person and they feel much maligned that they get caught up in some person's illegal activity.

Ms Forrest - Are they going to help you strengthen the security?

Mr AIRD - Yes, of course.  The agency and I spoke to the head of Treasury and the two deputy secretaries of Treasury last night and I said that I wanted to make sure that everything possible was undertaken to eliminate opportunities for this type of behaviour.  It does not suit anyone's purpose and it is extremely damaging to those who work in there who have done nothing wrong.  I am very keen to ensure that all avenues are pursued, including the notion of people not being allowed to carry paper from one section to another and that electronically there needs to be a greater tracking of the information.  The type of information that was released yesterday is the type of modelling that is done time and time again, hundreds and hundreds of times.  We have to do that type of work to find out the effect of certain government decisions - you have to do it - you have to find out the trial balances.  That is what the modelling was about, there is a working document -

Ms FORREST - It's still damaging, though.

Mr AIRD - Of course it is damaging, I know it is damaging.

Mr Wilkinson - It spooks the population, doesn't it?

Mr AIRD - No, it does not spook.  We must not exaggerate.  It is not good but it does not spook the population.

Members interjecting.

Mr AIRD - I am not going to reflect upon the balances that were in that particular document and it is a very unhelpful activity.  No-one who was sitting in my position would think it was a good thing.  My political opponents would welcome it because it causes some degree of concern for those decent, hardworking public sector employees doing a great job trying to produce a budget in a very difficult situation who have been damaged by this activity.

GST Revenue Distribution - 26 May 2009

[3.13 p.m.]

Ms FORREST (Question) - My question is to the Treasurer and it is not about the leaks.  Treasurer, as Tasmania is one of the States that has less revenue-raising powers and higher costs to provide a range of common services and therefore relies on the horizontal fiscal equalisation of the GST revenue distribution to the States and as a Commonwealth Grants Commission 2008 update resulted in Queensland becoming a donor State in 2008-09 and thus receive a below per capita share of GST revenue from the Commonwealth, will the current formula ensure that Tasmania will get its fair share regardless of whether these changes exclude stimulus payments from the GST carve-up formula?  Furthermore, what are you doing, as Tasmanian Treasurer, to ensure the push from your colleagues in Queensland does not diminish Tasmania's allocation of the much-reduced GST revenue to be distributed in this and coming financial years?

Mr AIRD - I thank the honourable member for her question.  Last year I met with the Commonwealth Grants Commission and indicated my views on the issues that they are considering and the influence that Tasmania can bring to bear.  It is interesting to look at the positions the States take in terms of horizontal fiscal equalisation.  These can change according to economic circumstances of the time.  Let me be very clear, Tasmania has been a beneficiary of horizontal fiscal equalisation.  We will be doing all we can to maintain our relative position in terms of HFE and given the economic circumstances that have presented themselves since around about September last year, I would hope - and I have made representations to individual commissioners in relation to this - that there would be some consideration at this time to not create any shocks to any jurisdiction.  Tasmania has been by far the most disadvantaged State in terms of GST revenues as a percentage of their revenue and that has been as a result of the diminishing pool that has been affected by Queensland, New South Wales and Western Australia.

Basically until the national economy improves, I think it would not be a good idea for there to be any changes to the present arrangements.  I have made that position clear to the Commonwealth Grants Commission and their members.  I will continue to do that and I would welcome any support from members.

Ms Forrest - You are talking about the exclusion of the stimulus payments there.

Mr AIRD - You can seek to have specific purpose payments and national partnership payments and other funds quarantined.

Ms Forrest - But there are not many of those that are.

Mr AIRD - Over a period of time, horizontal fiscal equalisation does make adjustments up and down according to the special purpose payments or the national partnership payments.  That is why it is there and that is what it is designed for.  In effect if they are excluded, it has no effect per se but there would be some adjustment on the way through as the horizontal fiscal equalisation is applied.

To answer the member's question, yes, the money to support the Latrobe hospital from the Commonwealth was quarantined.  That was a condition of that agreement in that instance.  Nonetheless, under horizontal fiscal equalisation there can be adjustments made in any event, even if that has not been factored into our receipts that relate to GST revenue.

Laptops for Teachers Program - 21 May 2009

[3.08 p.m.]

Ms FORREST (Question) - Madam President, my question is to the honourable Leader.  An initiative of the Government in 2005, the laptops for teachers program, was for the provision of laptop computers for all teachers by September 2006.  These laptops were to be provided in a four-year replacement cycle, with the old equipment being able to be retained by the schools.  The first of these laptop computers provided through this initiative now being due for replacement this year and in light of the current cost-saving measures across all departments, what is the Government's current position on the teachers laptop replacement schedule?

Mr PARKINSON - I thank the honourable member for her question.  All laptops under the teachers laptop program are still being allocated and used by teachers who are 0.4 full-time equivalent - FTE - or above.  There are more than 4 200 laptops allocated to teachers.  All laptops are still covered under warranty.  The department is currently considering plans for their replacement and is investigating different laptop options that are now available in the marketplace.

Finance - Payments by Commonwealth - 20 May 2009

[2.45 p.m.]

Ms FORREST (Question) - Madam President, to reframe part of the question I asked the Treasurer yesterday, I ask again of the Treasurer:  in last year's State Budget the estimated payments from the Commonwealth were $2 525 million for 2008-09.  The midyear report in December 2008 increased the figure to $2 590 million.  Statement number 3 in the recent Federal Budget estimates payments to the State will be $2 592 million for 2008-09, which is $67 million more than the original budget estimate in June 2008.  Can you confirm that the payments from the Commonwealth this year will be greater than were estimated in either the original Budget in June 2008 or in the midyear update in December 2008?

Mr AIRD - I thank the honourable member for her question.  The total allocations to the State and the increase are not the nub of the problem that the Government is facing.

Ms Forrest - I am not asking you the nub of the problem; I am asking you if this is the case.

Mr AIRD - We will be putting the Commonwealth allocations in terms of GST, specific purpose payments and national partnership payments in our Budget.  There has been a drop-off in GST revenues, in terms of our anticipated expenditure from one budget to this, of a bit under a billion dollars.  I do not think the honourable member has an argument with that.

Ms Forrest - No, I'm not asking you that.

Mr AIRD - You do not have an argument with that and therefore it comes back to the issues of specific purpose payments and national partnership payments which have been increased by the Federal Government.  That is on the basis of their commitment to education and schools and to the housing fund.  They are the basic issues but there are other allocations there as well.  No-one is arguing about the totality of the number.  What we are graphically illustrating is, in terms of the flexibility of the Government, there is no flexibility about specific purpose payments, no flexibility about national partnership payments -

Ms Forrest - Not all national partnerships, only some of them.

Mr AIRD - Well, look, the honourable member is going to have plenty of time, when we bring down our Budget, to go through these issues portfolio by portfolio, and we will be able to detail the Commonwealth commitment and our commitment to those particular funds.

Ms Forrest - But are you getting more than was expected?

Mr AIRD - Not in the GST, we are not.

Ms Forrest - I am not talking about the GST.  I am talking about the Commonwealth contribution.

Mr AIRD - What you are trying to do is build an argument around combining apples with potatoes and you cannot do that because it is unpalatable.  The reality is, though, that in terms of the forward Estimates, yes, there will be increases in some areas and there will be decreases in others.

Environment, Resources & Development Committee Report - 20 May 2009

[2.34 p.m.]

Ms FORREST (Question) - Madam President, my question is to the member for Western Tiers.  As the interim report on the sale of TOTE from the Joint House Environment, Resources and Development Committee was withdrawn from the Notice Paper yesterday, when can this House expect to see the final report of that committee's deliberations?

Mr HALL - I thank the member for her question.  The Environment, Resources and Development Committee did meet yesterday and we discussed a range of matters.  One of those was that we had an outstanding matter with regard to TOTE and we resolved, from memory, to write a letter to the Treasurer reminding him that we wanted a response to that letter.

Ms Forrest - This is outstanding from previously?

Mr HALL - Yes, outstanding from previous correspondence.

Mr Parkinson - I take it this is the long way of saying there have been discussions but no decision has been made.

Mr HALL - No, we are still waiting for the response from the Treasurer.  Then the committee will  determine when it makes its final report.

Ms Forrest - It's a bit late in the game, isn't it?

Finance - Payments by Commonwealth - 19 May 2009

[2.49 p.m.]

Ms FORREST (Question) - Treasurer, recently both you and the Premier have taken every opportunity to point out that the State's share of GST revenue will be down by approximately $300 million in 2009-10 and by another $1 billion over the next three years.  My understanding is that the State's share of GST revenue forms the bulk of the State's general revenue payments.  Under the new COAG arrangements, payments from the Commonwealth for 2009-10 will comprise general revenue payments as specific purpose payments.  Last year's State Budget estimated payments from the Commonwealth to be $2 585 million in 2009-10.  The midyear report in December 2008 increased this figure to $2 614 million.  Statement number 3 in the recent Federal Budget Estimates is that payments to the State will be $2 801 million in 2009-10, which is $216 million more than the original budget estimate in June 2008.  Can the Treasurer confirm that the payments from the Commonwealth this year will be greater than was estimated in either the original Budget in June 2008 or the midyear update in December 2008?  Further, if this is the case, and the State will receive more during 2009-10 from the Commonwealth than originally anticipated, then why are we persisting with the story that our woe has been brought about by a revenue shortfall from the Commonwealth?  Can you explain the whereabouts and the dimensions of the much-discussed black hole?

Mr AIRD - I thank the honourable member for her question, but I do not think you appreciate the nature of the transfers from the Commonwealth Government.

Ms Forrest - I read the budget papers.

Mr AIRD - You misunderstood the budget papers.  The reality is that the general purpose transfers to the States come via the GST payments.  From the 2009-10 Budget and the forward Estimates there has been a reduction of nearly $1 billion in GST transfers to the State.

Ms Forrest - Yes, GST transfers.

Mr AIRD - Let me finish.  What the honourable member is saying is true, that there will be specific purpose payments and there will be national payments to the State.  It is a fact that those payments are tied payments.  They do not allow for any discretion other than for the purposes that they were allocated.  I cannot go through the exact figures that the honourable member has quoted but the point is this:  the point of flexibility for the State Government is limited to the GST payments.  That is where you get the discretionary expenditure.

Ms Forrest - You are still getting more money, though.

Mr AIRD - Can I just say that it highlights one thing.  People have been saying that the Commonwealth Government has not been providing assistance to the State Government.  The fact is - and I have argued this before - that, in terms of specific purpose payments and national partnership payments, we are doing very well from the Commonwealth Government.  But they are tied payments.  They do not allow for any discretion.

Ms Forrest - They must free up other avenues of spending.

Mr AIRD - No, they do not.

Ms Thorp - They don't.  And often they have to be matched and your recurrent's even less.

Ms Forrest - Yes, but you're still getting more than you anticipated.  That's right, isn't it?

Mr AIRD - No, that is not the issue.  If it was one great big parcel and we could do what we liked with it -

Ms Forrest - I know it's not that.

Mr AIRD - It is not.

Ms Forrest - I know it's not.

Mr AIRD - It is a very serious issue.  I just hope that people can understand the nature of the task in front of us.  Do not deny the issue.  Denial is not an option here.  It is a very serious issue.  The figures are published in the Commonwealth budget papers.  They are the ones that have to be put into our budget papers and our discretion against the forward Estimates is a write-off of about a billion dollars.  That is a reality.  Let me just point this out:  the honourable member refers to specific purpose payments and national partnership payments.  Yes, we received those and we are working with them because they are matching into areas where we can see a good endeavour.  Let us not forget the fact that these figures - the national partnership figures and the specific purpose payments - can affect our revenues in terms of our general payments because the Commonwealth Grants Commission equalise those payments against our GST revenues.  It is part of our formula.  So it is not an absolute windfall.  There are adjustments made by the Commonwealth Grants Commission.

Ms Forrest - I am not suggesting it is a windfall.  I am suggesting that you are getting more in those payments than you had anticipated.

Mr AIRD - But, in terms of what we can do in our own budget, it is limited to the GST payments.

Ms Thorp - They've cut the housekeeping to give us money for a new lawnmower.

Mr AIRD - That is the situation.  I wish it was not.  Do you think I like that?

Mr Wilkinson - It's certainly a hand one, it's not a motorised one.

Mr AIRD - The fact is that I would much prefer the assertions made by the honourable member to be true and that we could get on with life.  Do you think any of us like doing this type of stuff?  It is not easy, it is not particularly nice but it has to be done for the betterment of the State.  We will work with that and when we bring down the Budget on 11 June we will show that we are doing our level best to make sure the State finances are in good condition not only for this Budget but for future budgets as well.

Laptops for Teachers Program - 9 April 2009

[2.30 p.m.]

Ms FORREST (Question) - Madam President, my question is to the honourable Treasurer.  Treasurer, an initiative of the Government in 2005, the Laptops for Teachers program, was for the provision of laptop computers for all teachers by September 2006.  These laptops were to be provided on a four-year replacement cycle with old equipment being able to be retained by the schools.  The first of these laptop computers provided through this initiative now being due for replacement this year, and in light of the current cost-saving measures across all departments, what is your position on the teachers laptop replacement schedule?

Mr AIRD - I thank the honourable member for her question.  I have not seen a proposal relating to this as a potential cost-saving measure.  I do not know if the honourable member is encouraging me to look at this as a possible cost saving.

Ms Forrest - No, I'm not.  I'm asking are we going to see a rollout of the new lot.

Mr AIRD - As long as we are clear on that we are okay.  I am sure there are other people in this Chamber who would be interested to know what teachers support in terms of their IT.  I think there would be a lot of people interested in that.  I do not know the detail of that, it is not in my portfolio area.

Ms Forrest - But you hold the purse strings that would enable the new laptops to be bought.

Mr AIRD - I know, but my basic position is - and my ministerial colleague will testify - ministers are responsible and they are accountable for their areas.  I assist in trying to provide the wherewithal to achieve the policy outcomes that they seek to achieve for the whole of government.  Having said that, I have not seen any proposal to take into account any propositions the honourable member has put forward.

Schools - National Building Program - 8 April 2009

[3.02 p.m.]

Ms FORREST (Question) - Madam President, my question is to the Treasurer.  Treasurer, given the huge investment in schools under the Federal Government's building education revolution which encompasses a requirement for all States to maintain funding allocations for capital expenditure, what impact will this Federal Government initiative have on the previous and existing schedule for capital works, some of which will no doubt now be able to be funded through this initiative?  Which schools that have submitted requests for capital investment projects that are yet to be approved will be added to the list of capital works over the next two years?

Mr AIRD - I thank the honourable member for her question.  One of the conditions of the allocations made under the Nation Building program from the Federal Government is that they be fresh projects and not for a State government to be able to siphon off any of the national allocations.  The Education department had a range of projects sitting on the shelf that had not been funded.

Ms Forrest - That must move some up the list.  That's what I'm saying.

Mr AIRD - Yes, it does. We would take into account the allocations to those projects and, because they have been funded by the Federal Government, if we are in a position, in terms of minor works or major capital works, we may be able to bring other projects forward.

Ms Forrest - We will see them in the Budget, will we?

Mr AIRD - I will not speculate what is in the Budget.

Ms Forrest - No, I am saying specifically what is in the Budget.  We will see these projects announced in the Budget, will we, the ones that will be able to move up the list because of the Federal Government initiative?

Mr AIRD - We will not anticipate what can be announced in the Budget.

Ms Forrest - You have to keep spending the money, though.  The Feds said you have to spend the money.

Mr AIRD - In answer to the honourable member, the projects brought forward are Kingston High School, the Cradle Mountain sewage treatment, the Bruny Island Community Health Centre, Launceston General Hospital's fire detection upgrade and additional expenditure from the hospital equipment fund.

Finance - Net Debt - 8 April 2009

[2.32 p.m.]

Ms FORREST (Question) - Madam President, my question is to the Treasurer.  Treasurer, you often remind us that our net debt is nil and is one of government's key fiscal targets.  I put it to you that the definition of 'net debt' is seriously flawed as the assets that you have included are mainly just cash and bank deposits while the liabilities are only a few long-term ones, including the housing debt to the Commonwealth which may not be due for 20 years.  As the liabilities do not include the unfunded super liability, yet the cash set aside in the Superannuation Provision Account to help provide for the unfunded liabilities is included as an asset, can you explain the point and value of the measure of net debt?  Furthermore, can you provide a more meaningful yardstick so the Tasmanian electorate can better assess the options facing the State in the economic cycle?

Mr AIRD - I thank the honourable member for her question.  I do not know quite where these questions are coming from but I am happy to go through these issues.

Mr Wilkinson - She is the member for Murchison, that is where they are coming from.

Mr AIRD - That is fair enough.  In essence what we do in terms of our description of net debt is part of the uniform reporting requirements that we have to put in place.  Some contingent liabilities are not part of that balance.  It is a liability that is not factored into net debt because it is a liability not a debt.  It is true that net debt is an area that you have to keep an eye on and we have had debt surplus, a double negative to make a surplus, and that is under challenge because what occurs in difficult financial times is that you start drawing down on your cash.

When revenues are drying up that balance gets affected.  In terms of an explanation all I can say is that I am happy to have representations from the honourable member about this issue.  We publish our budget papers and our reporting requirements, as is the uniform requirement by all jurisdictions -

Ms Forrest - And you have definitions in there?

Mr AIRD - Yes, and they are consistent definitions -

Ms Forrest - But if you have your superannuation liability not recorded but you have the money in the SPA included as an asset, surely it doesn't provide a true picture.

Mr AIRD - If it was determined that we put in the superannuation liability, we would.  But it is that, a liability, and it is an ongoing liability and we are trying to deal with that in terms of allocations made to the Superannuation Provision Account and so on, which builds up the cash in terms of the liability.  If the honourable member wants to get further information about why we report the way we do and the way we define the aspects of these balances, I am happy to get a briefing for the honourable member about that.

Mr Harriss - Your cause would be significantly advanced if you appointed a cabinet secretary.  You used to perform a lot better when you had one.

Mr AIRD - I cannot remember how long ago that was.

The other point that I make is this, the Auditor-General in the end makes a call on these aspects and there is no hint that the Auditor-General has ever reported adversely about this balance.

Ms Forrest - Do you think the net debt is flawed, the definition?

Mr AIRD - No, I do not.

Falls Festival - Police Operation - 7 April 2009

Ms FORREST asked a question of the Leader of Government Business in the Legislative Council -

With regard to the 2008 Falls Festival and the police operation as patrons left the venue on 1 January 2009 -

(1)   How many police officers were deployed on the breath-testing operation?

(2)   How many drug and alcohol tests did Tasmania Police expect to conduct?

(3)   What was the total financial cost to Tasmania Police of the breath-testing operations?

(4)   When planning for the breath-testing operation occurred, how many vehicles did Tasmania Police estimate would be present on, and exiting the site?

(5)   (a)     Did Tasmania Police consider any other logistical strategy for conduct of the breath-testing operation?

(b)    If not, why were alternative strategies not considered prior to a decision being taken on how, when and where the operation should be conducted?

(c)     If yes, why was the logistical strategy actually implemented considered to be better than the other strategies?

(6)   How many drivers were breath-tested for alcohol?

(7)   (a)     How many drivers tested were over the legal limit to drive?

(b)    Of these, how many were provisional driver licence holders?

(c)     Of the provisional driver licence holders tested, how many recorded alcohol and what were the readings?

(8)   (a)     Were all drivers over the legal limit removed from the road and prohibited from driving until they were below the legal limit?

(b)    If not, how many drivers and at what alcohol levels were these drivers permitted to continue driving?

(9)   How many drivers were tested for the presence of drugs?

(10) (a)     How many positive drug tests were recorded?

(b)    In the case of positive drug tests, were all these drivers prohibited from driving until they were retested and clear of drugs?

(c)     If not, how many were permitted to drive?

(11) (a)     Was there a speed camera or other speed-recording device set up on the road leaving Marion Bay, beyond the point where breath-testing was conducted?

(b)    If so, how many drivers were recorded as speeding and how many km/hr over the limit were these drivers?

(12)  Does the Government acknowledge that -

(a)     Fatigue can be a contributing factor in road crashes?

(b)    Delays caused by police operations at this event contributed to the fatigue of many drivers?

(13)  What procedures and processes will be employed for the 2009 Falls Festival, should it continue at the current site, to avoid a situation such as occurred at the 2008 festival, where drivers spent up to 17 hours in their vehicles and driving to get home?

Mr PARKINSON replied -

(1)   25.

(2)   Up to 2 000 dependant on the detection rate and traffic flows.

(3)   The breath-testing operation was conducted as part of rostered duty.  The only additional expenditure was $882.17 for a registered nurse to be on site for the day to take blood samples as and when required.

(4)   Approximately 6 000.

(5)   (a)     Yes.

(b)

(c)     Access to the alternative site was impeded by cars and other vehicles parked in the location originally set aside.

(6)   987.

(7)   (a)     31.

(b)    13 persons were as defined by section 6(3) of the Road Safety (Alcohol and Drugs) Act 1970, persons who were not permitted to drive with any alcohol in their body.  Nine of these 13 persons were by definition provisional drivers.

(c)     The blood alcohol readings of the provisional drivers ranged from 0.016 per cent to 0.082 per cent.

(8)   (a)     Those that exceeded the limit were tested and prevented from driving.

(9)   Two (based on observations)

(10) (a)     One.

(b)    Yes (alcohol reading as well)

(11) (a)     Yes, in Sorell.

(b)    107

By 11 km/h            27

12 km/h            27

13 km/h            15

14 km/h            14

15 km/h              6

16 km/h              5

17 km/h              6

18 km/h              1

20 km/h              3

21 km/h              1

29 km/h              1

40 km/h              1

(12)  (a)    Yes.

(b)    Cannot be quantified as no accidents nor incidents relating to fatigue were reported.

(13) Planning for the operation in 2009 has commenced and will involve consultation with the event organisers to develop an appropriate on-site traffic management plan to be implemented when traffic exits the site at the conclusion of the event, together with strategies to reduce the number of drivers leaving the site affected by alcohol.

Tasair Service to King Island - 7 April 2009

Ms FORREST asked a question of the Leader of Government Business in the Legislative Council -

With regard to passenger air services between the Tasmanian mainland and King Island provided by Tasair -

(1)   Is there any agreement or government-imposed scheme that restricts other carriers providing a passenger service on that route?

(2)   If not -

(a)     Will the Government actively seek to encourage and attract other carriers, or

(b)    work with Tasair management to provide a more efficient, timely and less costly service to the people of Tasmania who live on and visit King Island?

(3)   If such an agreement or scheme exists, does the Government consider it could be anti-competitive, thereby denying Tasmanians more options and choice regarding air passenger services to and from King Island?

Mr PARKINSON replied -

The communities of the Bass Strait islands have a strong interest in the provision of air services to the islands and have often pursued improvements to services or infrastructure.

Operators introduce or make changes to services in response to demand and yield, which influence the nature of services provided.

Although passenger numbers to King Island declined 37 per cent between 1999 and 2007, three operators still provide daily airline services.  Tasair, the subject of the honourable member's questions, currently operates a regular composite service on the route between the Tasmanian mainland - Hobart-Devonport-Burnie/Wynyard - and King Island.

Airlines of Tasmania was the sole provider of air services to both King and Flinders islands for several years under a licence issued by the Tasmanian Government until 1997.  Following the collapse of Airlines of Tasmania in 1997, three Tasmanian operators - Tasair Pty Ltd, Island Airlines Pty Ltd and Par Avion - were issued with licences to provide regular passenger transport services to the islands.  Other airlines were also involved in delivery of services to the Bass Strait islands from either Victoria or Tasmania or both.

For a time there was considerable turmoil in service delivery, with a number of airlines either failing commercially or withdrawing.

The repeal of Part 3 of the Traffic Act 1925 in 2000 removed the requirement for operators of intrastate regular passenger transport and charter air services to be licensed by the Tasmanian Government.

There is now no impediment should another operator identify an opportunity to commence additional air services on the route between the Tasmanian mainland and King Island.

Therefore, in answer to the honourable member's first and third questions, there is no agreement or government-imposed scheme that restricts other carriers providing a passenger service on the route between the Tasmanian mainland and King Island.

In answer to the honourable member's second question, the Tasmanian Government takes a non-interventionist stance with respect to the air transport market and considers that the provision and running of aviation services should, wherever possible, be a competitive commercial activity carried out by the private sector, fashioned in accordance with demand and supply cost factors like any other.

This position has been taken in order to promote a competitive and responsive market that operates as efficiently as possible for commercial operators, passengers and Tasmanian taxpayers.

Water Reform - 10 March 2009

[2.52 p.m.]

Ms FORREST (Question) - Madam President, my question is to the Treasurer.  The Treasurer is the driving force behind the water reform agenda in Tasmania.  Considering the Premier's announcement of plans to create a statewide water economy delivering up to 250 000 megalitres of water per year to over 200 000 extra hectares under irrigation to make Tasmania the food bowl for Australia and, if the Mercury of 24 February 2009 is correct, that the Government will be shifting Tasmania's west coast water to the Midlands and east coast to address Australia's food security crisis, what research development, including a cost-benefit analysis - as one would expect to form an integral part of a business case of such a project - has been done to consider where the water will be taken from; the costs and benefits of keeping the water on the north-west and using it to enhance capacity there in terms of increased output for crops, dairy and beef production, new crops and other opportunities; a cost-benefit analysis of sending the water to the east and south of the State to revitalise the dry land there, including consideration of issues such as salinity, long-term sustainability and productivity, and what consideration has been given to the cost and benefits of alternative uses, including having the water flow through Hydro Tasmania's generators first?

Mr AIRD - I thank the member for her questions and perfectly reasonable questions they are too.  This is not my portfolio responsibility, I hasten to add, so I am not going to be engaged at a detailed technical level but I think the principle that is being put forward here is a sound one.  We have 14 per cent of the nation's water falling on less than 1 per cent of the landmass of Australia and that is a huge comparative advantage that we have over the rest of Australia -

Ms Forrest - What, I am asking, is the advantage being considered for the north-west?

Mr AIRD - I presume the honourable member does not disagree with the policy intent of trying to create an avenue where we can further enhance our primary industry sector to be more productive with the capacity to move water from one place to another.  I do not think that anyone could disagree with that.  What the honourable member is asking is, what are the steps that are being engaged in now to allow for a plan to do this?

We have expertise within government and if need be we will seek it from outside of government as well to provide advice on the economics of doing what we intend to do  There could be a range of models put in place in terms of who might undertake that work.  That will need to be put in place as well.  We have the Tasmanian Irrigation Development Board and the Rivers and Water Supply Commission.  There is a range of expertise available to government to provide the necessary advice to ensure that we get the right outcome for Tasmania.

In terms of the secondary use of water for Hydro, I do not have the answer to that.  That has been canvassed before.  I hoped the honourable member would acknowledge that wherever the resources are this is not an argument that is peculiar to the west coast, this is about a strategic direction for the State.  Let us face it, the west coast gets a lot of water, it captures a lot of water and we need to make sure that it is put to the strategic interests of the State.  I am sure that when we are able to put in plans and announce how, quite frankly there will be a level of engagement with other tiers of government, and that would include local government and the Federal Government.

I think they are reasonable questions but let us place it in context that we do have this high percentage of water in Tasmania and we need to capture and distribute it to areas of need so we can make Tasmania a more productive place.

Hobart International Airport Sale q2 - 10 March 2009

Ms FORREST asked a question of the Treasurer -

(1)   Does the Treasurer have any knowledge of two companies incorporated in December 2007, with similar names to those involved in the purchase of the Hobart airport, being Tasmanian Gateway Pty Limited and Tasmanian Gateway Holdings Pty Limited?

(2)   If so -

(a)     are any of these corporations connected; and

(b)    what is their connection with the sale of Hobart airport?

Mr AIRD replied -

(1)   Yes.

(2)   (a)     Yes, they are related to each other.

(b)    They are companies that were established by an unsuccessful bidder for Hobart airport.

Hobart International Airport Shares - 10 March 2009

Ms FORREST asked a question of the Treasurer -

The contract for the sale of the Hobart airport indicates that shares in the Hobart International Airport Pty Ltd were purchased by Tasmanian Gateway Corporation Pty Ltd.  Schedule 7 covering buyer warranties states that the issued capital of the buyer is set out in Schedule 9.  Schedule 9 indicates that 102 million shares were issued, of which only approximately 1 million were held by the Retirement Benefits Fund - RBF.  The Australian Securities and Investment Commission - ASIC - records suggest that the issued capital of the buyer is only 100 shares, totalling $100 and this is held by its sole shareholder, Tasmanian Gateway Holdings Corporation Pty Limited.  Which is correct; the buyer warranty or the ASIC records?

Mr AIRD replied -

Both are correct. Tasmanian Gateway Holdings Corporation is the sole shareholder of Tasmanian Gateway Corporation.  At completion the shareholders of TGHC were Macquarie Capital Group Ltd and Macquarie Global Infrastructure Fund and the RBF Board.

Background

The consortium that purchased the Hobart International Airport established a special purpose vehicle, Tasmanian Gateway Corporation Pty Ltd - TGC - as the investment company to acquire the shares of Hobart International Airport Pty Ltd - HIAPL. TGC is a wholly-owned subsidiary of Tasmanian Gateway Holdings Corporation Pty Ltd - TGHC.

Each member of the consortium contributed equity to TGHC via stapled redeemable preference shares - RPS - and ordinary shares - OS - in a ratio of 99.1.

TGHC was therefore funded as follows:

2 000 000 OS @$1.00 per share - $2 000 000

2 000 000 RPS @ $99.00 per share - $198 000 000

Therefore the total capital raised by the consortium was $200 000 000.

RBF owns a 49.9 per cent share of TGHC through its investment of 998 000 OS and RPS out of a total 2 000 000. Following the initial acquisition, Macquarie Capital Group Limited owned 400 000 OR and RPS, and Macquarie Global Infrastructure Fund IIIA and Macquarie Global Infrastructure Fund IIIB - collectively, 'GIF III' - owned a total of 602 000 OS and RPS. On 20 June 2008, Macquarie Capital Group Limited sold its interest in TGHC to GIF III. Therefore as at 18 November 2008, GIF III owns a 50.1 per cent interest in TGHC through 1 002 000 OS and RPS.

TGC was funded by TGHC via the issue of 100 ordinary shares @ $1.00 per share - $100.00.  Therefore, ASIC correctly records the TGC shareholding of 100 $1.00 shares with TGHC being the sole shareholder.

Schedule 9 accounts for the $200 000 000 raised by the consortium but there appears to be a typing error in the number of shares held by Macquarie Capital Group Limited as this should have been 400 000 as indicated above.

2.3 Ultimate Owners

The ownership structure of TGC is outlined below:

Tasmanian Gateway Holdings Corporation Pty Limited - TGHC - is a special purpose holding vehicle, incorporated in Victoria and established for the purpose of the transaction.

Schedule 9 - Issued Capital of Buyer

Hobart International Airport Sale - 10 March 2009

Ms FORREST asked a question of the Treasurer -

The contract for the sale of shares in the Hobart International Airport Pty Ltd - HIAPL - estimated the Tasmanian stamp duty to be $600 000 which was to form part of the purchase price.  Assuming that any increases in stamp duty would be further deducted from the final purchase price -

(a)   What were the precise dutiable transactions that made up the sale price of $352 million?

(b)   What were the stamp duty amounts?

(c)   Who paid these amounts, bearing in mind that the TasPorts annual accounts for 2007-08 indicate that $43.4 million in debt repayment and stamp duty formed part of the purchase price?

(d)   What is the break-up of these amounts?

(e)   Why does the stamp duty differ from the estimates in the contract?

Mr AIRD replied -

A reconciliation of the final sale price is provided at Attachment 1.

The total sale price differs slightly from that reported by TasPorts due to a minor interest adjustment on final settlement.

The stamp duty payable on the transaction was paid by the purchaser as part of the total purchase price.

The Commissioner for State Revenue is not a member of the RBF Board.

Attachment 1

Preliminary Outcomes Report - Sale of Hobart International Airport - 10 March 2009

Ms FORREST asked a question of the Treasurer -

Referring to the Preliminary Outcomes Report for 2007-08 which lists on the balance sheet of the general government a liability being 'an increase of $12 million in revenue received in advance which primarily relates to a financial transaction tax on the sale of the Hobart International Airport Pty Ltd which has yet to be finalised' -

(a)   What does this amount relate to; and

(b)   why is it yet to be finalised, when the airport sale was supposedly completed on 1 February 2008?

Mr AIRD replied -

(a)   This amount relates to a preliminary assessment made in June 2008 of State tax payable by the purchaser on the purchase of the Hobart International Airport Pty Ltd.

(b)   The sale of HIAPL was a complex transaction, requiring that advice be sought from the Solicitor-General in relation to legislative interpretation and application of a number of relevant case precedents.

The structure of the sale agreement was such that the total agreed sale price of $350 million included any State tax assessed.  Thus, the State tax revenue was received on settlement of the sale - 31 January 2008 - in advance of the tax assessment being finalised.

The liability at 30 June 2008 is an accounting classification required to bring to account the total receipts from the HIAPL sale pending finalisation of the tax assessment.

The assessment has now been finalised.

Tarkine Road Funding - 25 November 2010

[2.58 p.m.]

Ms FORREST (Question) - Madam President, my question is to the Treasurer - as surprising as it is.  Is the Government still committed to spending the remaining $16-odd million allocated to the Tarkine road funding in the north-west under the current budget allocation?  Does the Government remain committed to spending that money in the region?

Mr AIRD - I will have to take that question on notice.  I have used that gag three times now but it has probably run its race.  I thank the honourable member for her question.  I cannot predict  the actual allocations,  the balance -

Ms Forrest - The Government committed to it.

Mr AIRD - I am not going to forecast what judgment calls are going to be made in the future about that.

Ms Forrest - So no.

Mr AIRD - No, I am not saying that.  The Government has made a commitment to it and it is a timing issue as much as anything else, I think.

Ms Forrest - Is the commitment still there?  That is the question.

Mr AIRD - Unless there is a change of policy, there is a commitment to do it.  There has to be a deliberate change of policy to change that.  I am not in a position to say there is a change of policy and I would not -

Ms Forrest interjecting.

Mr AIRD - No.  If there had been a change of policy, I would say there has been a change of policy.  There has not been.

Ms Forrest - There could be a change of policy tomorrow.

Mr AIRD - You could change every policy any time you want to and that is the reality, if you want it to.  You can change policies all the time.  So, as it stands at the moment, there is a commitment to fulfil the allocations that were made in the election to the Tarkine investment.

Madam PRESIDENT - We note, for the record, the final question time as Treasurer of the Government for the member for Derwent, the Honourable Michael Aird.  Question time is now complete.

Mr Aird - Hear, hear.

Members laughing.

Finance - Government Spending - 25 November 2010

[2.54 p.m.]

Ms FORREST (Question) - Madam President, my question is to the Treasurer.  Can you identify what areas of government spending will form part of the belt-tightening you have assured us will be required to deal with the cash reserve shortfall and the massive projected drop in GST receipts?

Mr AIRD - I thank the honourable member for her question.  The time is not yet ripe in terms of identifying any belt-tightening measures that need to be undertaken in response to the drop-off of GST receipts of about $200 million.  That is subject to further deliberations of the budget committee and indeed of Cabinet.  When the appropriate decisions have been made I am sure the appropriate Treasurer will make the appropriate announcements.

Mr Dean - It won't happen on your watch.

Members laughing.

National Health and Hospital Reforms - 25 November 2010

[2.48 p.m.]

Ms FORREST (Question) - Madam President, it is encouraging because the new Minister for Economic Development is quite familiar with my patch.  He has spent a bit of time up there lately, which is good.

My question is to the Treasurer.  Treasurer, are you confident the national health and hospital reforms proposed by the former Prime Minister, and immediately endorsed by the Premier of Tasmania, are in the long-term best interests of Tasmania in terms of the effect on revenue flow from the Commonwealth for all purposes, not just delivery of health services?

Mr AIRD - I thank the honourable member for her question.  It is an important question.  The State has signed to a COAG agreement.  We have not yet committed to signing the agreement and there are still issues to be resolved between the relevant health departments.  One other part of the equation, which does not seem to get much attention, but I think should be of interest to those watching this debate, is that the 30 per cent GST clawback by the Commonwealth is not yet through Parliament.

Ms Forrest - Western Australia have not signed up yet either.

Mr AIRD - Western Australia have not signed up.  But that is not necessarily relevant to the legislation passing through Federal Parliament to recover 30 per cent of the GST receipts.  That is a fundamental consideration.  The Commonwealth want to be a major player in the reforms.  If they cannot claw back the 30 per cent of GST, how are they going to be funded?

Ms Forrest - It is not a done deal yet then.

Mr AIRD - I do not know the attitude of the various parties in the Senate at this stage; whether they are going to support the ability of the Commonwealth to claw back 30 per cent of the GST.

Silica Processing Plant - 25 November 2010

Ms FORREST (Question) - Madam President, my question is to the Minister for Industry.  Today seems to be the last day for the Minister for Industry as well.  The industry portfolio area seems to have been subsumed back into Economic Development or disappeared altogether, so my question to the Minister for Industry concerns outstanding projects, particularly the silica processing plant in the electorate of Murchison.  This project was one of the reasons for the minister keeping the industry portfolio area.  No announcement has been made, so clearly there has been no decision made, and the project has not been finalised.  What is going to happen in the future for that project?

Mr AIRD - I thank the honourable member for her question.  It is true that a potential silica plant development on the north-west coat was one of the reasons I asked to have the position as Minister for Industry.  I had some corporate knowledge, I understood the background to it and I understood the issues, and I also had, as you know, a strong involvement in the pulp mill development.

I believe we have all the natural resources in this State to develop a silica plant.  I can inform the honourable member there is still a very healthy interest from a number of different parties in proceeding to develop a plant.

Ms Forrest - Who is going to drive that?

Mr AIRD - The Minister for Economic Development will pick up those projects.  The Treasurer will have some involvement, and I am sure the Premier will as well.  Nothing is lost by not having the Minister for Industry involved.  Because of my knowledge of those areas of future development, I thought we could capture my involvement and make sure we kept pushing for those projects.

There will be a silica plant built in Tasmania.  It is only a matter of time.  Certainly, there is healthy interest from a number of different parties, and I am sure it will come to fruition.

Parliamentary Retirement Benefits Fund - 25 November 2010

[2.32 p.m.]

Ms FORREST (Question) - Madam President, my question is much more sensible and is to the Treasurer.  Treasurer, the Auditor-General in his report on page 219 on the Parliamentary Retirement Benefits Fund says that another year like 2009-10 could see net assets become negative.  Treasurer, does this mean that future benefit payments will be 100 per cent funded by the Government and not just the usual 75 per cent as applies to most RBF benefit payments now?   Can the Treasurer confirm that the superannuation fund that he is about to exit will be in even worse shape than the general government sector and that the superannuation unfunded liability whale now has a baby whale on its back, courtesy of the Treasurer?

Mr AIRD - I thank the honourable member for her question.  It is at the margin of that.  I could be a potential nightmare for the RBF if I happen to live for a very long time, and I am sure the honourable member for Launceston agrees with me, that we ought to look on the optimistic side of our retirements.

Mr Wing - That's right.  I started off a bit ahead of you.

Mr AIRD - I am sure the honourable member for Launceston and my retirement pensions are going to be at the margin of what would be expected to be any pressure on the RBF.

To take the matter a bit more seriously, obviously depending on how actuaries and others view this, it is one thing for the Auditor-General to make a statement and I understand the reasoning behind that, but the actuaries are really going to be the key to this.  Cabinet will have to consider further reports relating to the balance of the RBF.

Ms Forrest - Has the whale a baby on its back?

Mr AIRD - I am not too sure that baby whales actually sit on the back, I think they go on the side.

Member for Derwent - Future Employment - 24 November 2010

[2.58 p.m.]

Ms FORREST (Question) - My question is to the soon to retire Treasurer.

Mr Aird - You might have time for the question but not the answer.

Madam PRESIDENT - The final question must be asked before the 30 minutes are up, not the answer, just to clarify.

Ms FORREST - Madam President, as we are well aware, the Treasurer has recently announced his retirement from his position as Treasurer but also as a member of parliament at a later time coming up.  Treasurer, with regard to the government code of conduct and with regard to ministers accepting outside appointments and appointments to boards, is there a requirement as to how much time must elapse?

Mr Wilkinson - She wants you on the streets.

Mr AIRD - I am going to fall upon hard times; no ability to earn an income.  As I understand it, I do not think that there is any time limitation about accepting any potential board positions.  Let me say very clearly, though, that it is my intention that if the opportunity is available for me to be on private boards, if there is a requirement of that board to have an independent director, that is my interest and in terms of my future employment prospects as such, that is where I am focused.  There are a number of other aspects in regard to board positions that may eventuate.  In terms of public boards, I do not want to be in a position of any political discussion about any potential future boards.  I think we have established a very robust independent panel system now that anyone can put themselves on the register with Cordiner King.  I do not know how many people are on it now but I think probably about 200 people.  In time I might put my name on that register and see what happens.

To assure honourable members and the public generally, it is not my intention to be pursuing any public board positions at this stage but I am not ruling it out in the future.  In fact, I think it is appropriate and indeed the independent panel process has been universally accepted as the exemplary process for board appointments in Australia.  In fact, Cordiner King have now produced a paper in relation to public sector appointments using Tasmania as an example about how we should proceed.  I am in the throes of appointing more independent members to the panel so that there can be a wider spread of representation of those panels assessing those who go on to board positions.

Mr Wilkinson - You can't beat those independents!

Mr AIRD - It has a very distinct corporate meaning in terms of independent directors and I hope the honourable member is aware of that because he might be in the same boat at some stage in the future.

The fact is that I intend to remain in the workforce in a capacity where it suits but principally in the private sector.

Housing Tasmania Properties, Stanley and Smithton - 24 November 2010

[2.53 p.m.]

Ms FORREST (Question) - My question is to the honourable Leader.  Leader, what was the total number of properties held by Housing Tasmania in Stanley and Smithton in 2005 and how many properties does Housing Tasmania expect to hold in Stanley and Smithton by 2015?

Mr PARKINSON - I thank the honourable member for her question.  Housing Tasmania has 18 dwellings in Stanley and 121 in Smithton.   In 2005, Housing Tasmania had 18 dwellings in Stanley and 120 dwellings in Smithton.  Investment of capital funding for public housing is targeted at areas of highest demand, which is generally well-located to population centres with employment, health and commercial services.  Tasmania does not expect any substantial changes to demand and, consequently, stock levels over the coming years.  Any movement will be proportionate to express demand for public housing and population projections and asset-related factors.  In relation to demand, currently there are no applicants for properties in Stanley and four applicants only for dwellings in Smithton.  Of the four applicants, one is in category 2 for a one-bedroom property.  The other three applicants are in category 4 with the lowest level of need.

Superannuation Provision Account - Unfunded Liability - 24 November 2010

Ms FORREST (Question) - My question is to the Treasurer.  Treasurer, I will seek again to have information from the State actuaries triennial comprehensive review provided to Parliament.  Madam President, as I said yesterday, this review is referred to in the Preliminary Outcomes Report and the Treasurer's Financial Report of 2009-10.  When I previously asked this question of the Treasurer he said he had not even seen it, or did not recall seeing it.  Obviously it is a document he has considered and I would like him to now provide us with that information while he is still Treasurer.

Mr AIRD - I thank the honourable member for her question.  Estimates of the unfunded superannuation liability for the defined benefits schemes are prepared by the Actuary at 30 June each year and are used in the Government's annual financial statements.  In addition to this the Actuary is required every three years to undertake a comprehensive review of the defined benefits scheme.  The last review was undertaken in 2007.  This involves a review of all underlying assumptions such as the demographic and economic assumptions that are used in the Actuary's calculation to determine that liability.  Any changes to these assumptions following the triennial review are applied to subsequent annual estimates of the liability.  The current triennial review is still being undertaken by the State Actuary.  It is not expected to be completed until late December this year.  The 2007 triennial review was completed in December 2008.

Financial Management Framework Review - 24 November 2010

[2.31 p.m.]

Ms FORREST (Question) - Madam President, my question is to the Treasurer.  Treasurer, in light of an answer to a question yesterday regarding the review of the Tasmanian financial management framework in which the position paper seeks to obtain the views of stakeholders, you said that there will be a simpler way of identifying the superannuation liability and in terms of the Special Deposits and Trust Fund, those aspects will disappear into one consolidated amount.  This answer would suggest that a decision regarding this has been made and in spite of the position paper stating that it seeks to obtain the views of stakeholders, it is really just a way of telling people how it will be, a foregone conclusion, if you like.

Mr AIRD - I thank the honourable member for her question.  By way of further explanation as to  what would happen under the proposal as put forward in the discussion paper - it is a discussion paper, I am sure, and  the honourable member might be tempted to make a submission in relation to the discussion paper; I hope she does because we want to get it right - there would be one consolidated fund, if you like, and there would not be a special deposits and trust fund.  But that would not mean that everything just gets merged into a special deposits and trust fund as one item.  Everything should be, as an account, identified.  This is a discussion paper; nothing has been determined -

Ms Forrest - Can I make a suggestion, then?

Mr AIRD - I am always open to suggestion, Madam Deputy President; you would know that to be true.

The idea of discussion papers, as the honourable member knows, is to stimulate discussion, to encourage people to be involved.

Ms Forrest - This is called a position paper, not a discussion paper.

Mr AIRD - Well, it sets a position for a discussion and I look forward to the discussion.

I do not want this to sound as though it is too much like something out of Yes, Minister.  To be quite frank, I am pleased the honourable member is interested in this.  Sometimes it seems to be pretty dry stuff but the way we present the public account is very important and I envisage the new legislation relating to this will be the exemplar of how a government can put forward, in a transparent and open way, the state of the public account.

Ms Forrest - If I'm still here to scrutinise it.

Mr AIRD - One thing we know is that you will be here longer than I will be.

I will always be taking an interest in this, albeit from a vicarious -

Ms Forrest -While you're having a coffee?

Mr AIRD - It could be a pub; it could be a cafe.

The issue for me is that Treasury has done a lot of work on what may be, what could be, and I welcome any discussion around that discussion paper.

Superannuation Provision Account - Unfunded Liability - 23 November 2010

[2.59 p.m.]

Ms FORREST (Question) - My question is to the Treasurer.  Treasurer, in October I asked you to provide details of the outcome of the State actuaries' triennial comprehensive review of the assumptions underpinning the unfunded liability calculation referred to in the Preliminary Outcomes Report of 2009-10 and the Treasurer's Annual Financial Report 2009-10.  It is obviously complete and has been reviewed by the Treasurer, yourself, and Treasury some time ago.  In answer to my previous question you stated that you would release as much information as you possibly could in relation to this matter.  Will you now table and provide this information?

Mr AIRD - I do recall the question.  The honourable member needs to get out and enjoy herself sometimes.

Members laughing.

Ms Forrest - I do, by annoying you.

Mr AIRD - I was saying to the honourable member before, when we were having this argument about what you put next to your name - Labor, Liberal, Greens or Independent - that for the honourable member for Murchison it will be 'pest'.

Members laughing.

Mr AIRD - Said with all the good humour I could muster and received in the same vein, I hasten to add, Madam President.  I do not want to see another headline.

Mr Wilkinson - But do you know you are sitting by her side, does that mean 'pesticide'?

Mr AIRD - Ooh, spelt with an 's', very good.

Ms Forrest - The answer?

Mr AIRD - I will take it on notice.

Ms Forrest - You did that the last two times.

Mr AIRD - I think I will have to do it again because there has been some information I think I have provided to the honourable member.

Ms Forrest - Not a scrap.

Mr Harriss - It will get back here in June next year.

Ms Forrest - Yes, probably.

Mr AIRD - I think I will take it on notice and see what happens.  I will get back to the honourable member at the earliest opportunity, I can guarantee that.

Government Motor Vehicle Fleet - 23 November 2010

[2.53 p.m.]

Ms FORREST (Question) - My question is to the Treasurer.  Treasurer, the Auditor-General's report on Forestry Tasmania at page 42 reported that Forestry Tasmania sold its motor vehicle fleet for $5.5 million during the 2009-10 year on a sale-and-lease-back basis.  Will you consider following suit as a means to raise cash for the general government sector in these tough times?  Does the Treasurer have any standing instructions that cover the sale and lease back of assets by agencies?

Mr AIRD - I was just seeking some clarification on the status of our fleet.  TasFleet has the asset and we buy cars on a lease arrangement.

Ms Forrest - Forestry sold theirs.

Mr AIRD - I think we did that back in Robin Gray's time.  I would need some clarification on the actual arrangements.  TasFleet manages our cars on behalf of the State Government.  I do not think under the arrangement with TasFleet there is any capacity for sale.

Mr Dean - It's special-purpose vehicles, I think.

Mr AIRD - That we actually own outright?  I do not think that we own outright any vehicles.  I will check that but as I recall, the fleet was sold some time ago and is now managed by TasFleet.

Ms Forrest - In the last financial year.

Mr AIRD - Not in the last financial year.  Forestry Tasmania has but that is a different matter; we are not in the position to do what Forestry Tasmania did.

Financial Management Framework Review - 23 November 2010

[2.41 p.m.]

Ms FORREST (Question) - My question is to the Treasurer.  Can you confirm that the single-fund model proposed in your review of Tasmania's financial management framework will see the disappearance of the Temporary Debt Repayment Account and the Superannuation Provision Account?  Do you see this as an easier way forward rather than repaying debt to TDRA, that is abolishing the existing trust funds and deposit accounts and shuffling everything into a new account with a new name?

Mr AIRD - The first part of the question is correct, that there will be a simpler way of identifying the superannuation liability.  Nonetheless, in terms of the special deposits and trust funds, those aspects will disappear.  There will be one consolidated account, if you like, but there will be no -

Ms Forrest - TDRA.

Mr AIRD - If the honourable member is suggesting that there is going to be a pea-and-thimble trick in terms of how the public account is going to be organised and constructed, I can guarantee that everything will be transparent.  Every change will be transparent.

I make another point here, that with every single measure from the time that I put in the first budget to the last budget we have improved our level of transparency and openness about what is going on in the State finances to the extent that we are known to have the most open set of books in Australia, and that will continue.  I want people to be better informed about State finances and to understand the totality of what is going on within the State sector.  So, no, there is no contrivance here and there is no hidden agenda.  The demand will always be for greater transparency.  I agree with that and there will be no shift from one fund to another or a way of avoiding any liability that may presently exist.

Tarkine Road Funding - 18 November 2010

[2.59 p.m.]

Ms FORREST (Question) - Madam President, my question is to the Treasurer.  Treasurer, some time ago I asked about the $16.3 million funding that was allocated for the Tarkine Road that is to be, hopefully, spent in the region.  Can you inform the House at this stage whether that discussion/decision regarding the money for the South Arthur Forest Drive and other ventures in the Circular Head region has been to Cabinet?  When will we see these funds being allocated to this region to be spent for tourism infrastructure in the region?

Mr AIRD - I am not going to buy into the actual allocations of the community roads program.  That is for the Minister for Infrastructure to make a statement about and then when the minister has made a statement about those allocations, it will be clearer about the priorities in terms of road funding from the Government.

TT-Line Passenger Numbers - 18 November 2010

[2.55 p.m.]

Ms FORREST (Question) - Madam President, my question is to the Leader.  Leader, what is the breakdown of the TT-Line passenger numbers for the last 12 months on a monthly basis including interstate and other non-Tasmanian leisure visitors, Tasmanians leaving from or returning to the State, business travellers and other travellers?  What percentage and quantum of the revenue for the last financial year relates to passenger travel and what percentage and quantum of revenue relates to freight?  Some of this information may be in the annual report but when I asked these questions it was about three weeks ago and that was not out.

Mr PARKINSON - I thank the honourable member for her question.  It is not possible to release the monthly passenger figures as they are commercial-in-confidence.  Tourism Tasmania does undertake regular visitor or exit surveys which involve sampling, but the detail the honourable member has requested is not available.  What I can say, though, is that TT-Line has had a very busy year working hard to usefully increase passenger numbers in a difficult global financial climate.

TT-Line refreshed their advertising, launched their new award-winning travel guide and Internet-booking platform.  TT-Line are working to ensure destination attractiveness remains front and centre of their marketing efforts particularly as more Australians are holidaying overseas and we are competing with other domestic destinations.  Price innovations have included a reduction in the number of seasons from three to two.  Off-peak season is now 43 weeks of the year compared to 19 weeks previously and this has resulted in a reduction in standard fares of approximately 20 per cent.

Mr Wilkinson - I am still waiting for the answer, though.

Mr PARKINSON - The company runs on average one sales campaign per month, including a recent $25 fare promotion to mark the company's 25th birthday celebrations.  In this last financial year, the 25th year of TT-Line operating under Tasmanian Government ownership, it carried 405 554 passengers -

Ms Forrest - We don't know who they were, though, or where they were going.

Mr PARKINSON - an increase from 390 746 in the 2008-09 financial year.  In the 2009-10 financial year it is estimated that expenditure by sea visitors to Tasmania who travelled on the Spirit of Tasmania vessel injected approximately $350 million into the State's economy.

Ms Forrest - Were they Tasmanians or were they mainlanders?

Mr PARKINSON - Source:  Tasmanian Visitor Survey, Tourism Tasmania, which the honourable member should read.  The direct and indirect value of the company's employment of staff was $29.4 million.  Goods and services purchased by TT-Line were directly and indirectly responsible for injecting $22.9 million into the Tasmanian economy.  I am unable to disclose the information concerning the split of passenger and freight revenue as the information is commercial-in-confidence, I repeat.  It could harm TT-Line's commercial interests if it were released.  As highlighted in the annual report, freight revenue has increased by 7.5 per cent.  However, the perception that passenger vehicles space is being converted to freight space is not correct.  Increase in freight is a result of increased patronage.

Temporary Debt Repayment Account - 18 November 2010

[2.34 p.m.]

Ms FORREST (Question) - Madam President, my question is to the Treasurer.  Treasurer, you informed this Chamber in answer to a question that I asked that the Temporary Debt Repayment Account will increase in the next four years by a total of $399 million to a grand total of $1.837 million despite a balance of $1.77 million at the same date.  As I have identified recently, there is a distinct lack of cash to repay these borrowings from the TDRA.  As far as I am aware, the only way to reduce this temporary overdraft is to borrow from elsewhere, sell assets or run cash surpluses.  Treasurer, do you have any ideas that you may pass on to the new Treasurer on how to reduce this temporary overdraft and has the Government made any attempt to repay amounts to the TDRA during this term?

Mr AIRD - What is my stock phrase to you?

Ms Forrest - 'You're wrong'.

Members laughing.

Mr AIRD - No, I cannot use that on this occasion, Madam President, and I thank the honourable member for her question.

The issue is that in essence we have come through the global financial crisis and to do that we put in place an interim fiscal strategy to deal with it.  The honourable member is right in part, that to achieve the balances that were required to come out of the global financial crisis we had to use our cash reserves and that is what the past couple of budgets have attempted to do.

The interim fiscal strategy provides a pathway to achieve different balances into the future.  Obviously, the ideal would be to achieve cash balances similar to those of the last Budget prior to the GFC in 2008-09.  Those balances represented a path where we could accumulate cash and deal with the issues that you have identified.  That is the ideal fiscal strategy for the future as far as I see it but there can be strategies other than the three that you have identified to deal with this to get the right balances - so we can achieve cash balances to deal with the situation.

Ms Forrest - What are they?

Mr AIRD - That is not for me to call now in terms of the next budget or the budget after that.

Ms Forrest - What would you advise into the future?

Mr AIRD - It is not for me to publicly advise a new treasurer - I could try but I am not going to do that.  We are not out of the woods yet.

Mr Wilkinson - That's what Little Red Riding Hood said.

Members laughing.

Mr AIRD - I described Peter Gutwein as the Lewis Carroll of Tasmanian politics in terms of financial management because it is a bit like Alice in Wonderland; he is on a path but he does not know quite where it ends and he has to ask for directions on how to get there, if you can recall that.

Mr Harriss - You must be the Tin Man then.

Members laughing.

Mr AIRD - The fact is that we do have challenges ahead, and we have said that.  The reference to Peter Gutwein was, it was only a month ago that he wanted to spend $550 million on putting a cap on electricity prices, on a balance which was not even a real balance in terms of -

Mr Harriss - Ten months ago you wanted to do the same.  You promised you'd do it.

Mr AIRD - No, again you display your lack of understanding of these matters.

Mr Harriss - Well, you didn't make the promise, that's right, somebody else made it for you.

Mr AIRD - In time you will come to understand that public policy and fiscal policy depends upon your ability to be able to support those types of measures in place.

Mr Harriss - Tell us in advance when you're not going to do it rather than lead us astray.

Mr AIRD - You keep persisting in saying that and I will let you, and if the Auditor-General comes in with a report - and I have challenged you to say this before - I want an apology from you when the time comes.

Mr Harriss - Tell us what you'll do.

Mr AIRD - No, you will not do it.  I can guarantee you will not do it.

Mr Harriss - Neither will you.  You won't tell us what you will do.

Mr AIRD - Because you are not big enough.

Mr Harriss - You dodged the issue.

Madam PRESIDENT - Order.

Mr AIRD - You are not big enough to apologise.

Madam President, I thank the member for her question.  The interim fiscal strategy provides a pathway to achieving the types of solutions the honourable member thinks the best for the financial management of the State.

Provisional Drivers Licence Test - 17 November 2010

[2.54 p.m.]

Ms FORREST (Question) - My question is to the Leader.  What are the pass and failure rates of all drivers undertaking their P1 provisional driver licence test by region of the State and what is the number of attempts to pass the test?

Mr PARKINSON - I thank the honourable member for her question.  Firstly, the pass rates for all drivers attempting the P1 provisional driver licence test by region between 1 July 2010 and 11 November 2010 are:  south, 52 per cent; north, 62 per cent; north-west, 71 per cent.

Mr Wilkinson - I can see where everybody is going to travel to, to get their licence.

Mr PARKINSON - Secondly, for 2 780 P1 assessments completed between 1 July 2010 and 11 November 2010, 963 candidates passed on their first attempt; 442 candidates passed on their second attempt; 145 candidates passed on their third attempt; 59 candidates passed on their fourth attempt; 15 candidates passed on their fifth attempt; 10 candidates passed on their sixth attempt; 8 candidates have had seven or more attempts before passing.

Mr Wilkinson - How many is 'or more'?

Mr PARKINSON - Of the remaining 1 138 candidates, 561 had failed once, 323 had failed twice, 124 had failed three times, 53 had failed four times, 37 had failed five times, 40 had failed six or more times -

Members laughing.

Ms Thorp - After that we shoot them.

Mr Aird - Throw away their keys.

Mr PARKINSON - My advice does not show what happens after that.

Mr Wilkinson - Did you tell them that first you have to put a key into the ignition?

Mr PARKINSON - Candidates may have one or more failures in a previous financial year before managing a pass.  By comparison, the pass rates by region reported to the Estimates committee in June 2010 were:  south, 48 per cent; north, 56 per cent; and north-west, 69 per cent.

Water and Sewerage Services - Pricing Regulation - 17 November 2010

[2.40 p.m.]

Ms FORREST (Question) - Madam President, my question is to the Treasurer.  Treasurer, when will the pricing regulation for the water and sewerage services that will enable water and sewerage corporations to develop their price and service plan be made and provided to the Economic Regulator?

Mr AIRD - I thank the honourable member very much for her question.  It will be imminent.  I think there is something in my office for my attention.

Ms Forrest - I am sure there is.

Mr AIRD - When I have had a good look at it and signed off on it, then I will forward it to the regulator.

Superannuation Provision Account - Cash Backing - 17 November 2010

[2.35 p.m.]

Ms FORREST (Question) - Madam President, my question is to the Treasurer.  Treasurer, yesterday you informed me in answer to a question that the Temporary Debt Repayment Account will increase in each of the next four years by a total of $399 million to a grand total of $1.837 billion. The SPA will have a balance of $1.771 billion at the same date.  Can you confirm that the SPA will have no cash backing at the end of the 2014 year, and if that is not correct, what will the SPA's cash backing be?

Mr AIRD - I thank the honourable member for her question.  I do not have those immediate figures in front of me in relation to the issue, nor would you expect me to.  Nonetheless, I understand the intention of the question.  A budget in forward Estimates is at one point in time, but the budget and the management of the State finances is dynamic.  From one budget to another, certain things change.  Regarding pinpointing the actual amount now, I do not have that information in front of me.

Temporary Debt Repayment Account - 16 November 2010

[2.49 p.m.]

Ms FORREST (Question) - Madam President, my question is to the Treasurer.  Treasurer, given that the cash-backing of accounts like the Superannuation Provision Account - SPA - is directly affected by the balance of the Temporary Debt Repayment Account, what is the balance of the temporary debt repayment account as at 30 June 2010?  What amounts, if any, were credited or debited to the TDRA during 2009-10?  What was the purpose of any amounts expended from the TDRA during that period?  What is the estimated balance of the TDRA as at 30 June 2011?  What is the estimated balance at the end of each of the next three years of forward Estimates?

Madam President, I did send the Treasurer prior notice of this question to give him a few days to think about it.

Mr AIRD - I thank the honourable member for her question.  The answer to the first part of the question is that the balance of the TDRA at 30 June 2010 was a deficit of $1.438 billion.  To the second, a total of $281.6 million was debited to the TDRA during 2009-10.  There were no credits to the account during the year.  To the third, the amounts debited to the TDRA effected a drawing of $265.7 million, required to fund a Consolidated Fund deficit and repayment of debt amounting to $15.9 million.  To the fourth, the estimated balance of the TDRA at 30 June 2011 is a deficit of $1.673 billion.  The estimated balance of TDRA at 30 June in each of the next three years of forward Estimates is for 2012, a deficit of $1.769 billion; for 2013, $1.808 billion; and for 2014, $1.837 billion.

Forestry Tasmania - Use of TCFA Funds - 16 November 2010

Ms FORREST asked a question of the Treasurer -

The Auditor-General indicated in his last year's report that Forestry Tasmania had utilised Tasmanian Community Forest Agreement - TCFA - funds on a short-term basis to meet operational requirements and that whilst management was aware that the funds have been withdrawn and used for such expenses, there remained a need for the funds to be replaced and expended on TCFA specified activities.

(1)   Does the Letter of Comfort provided to Tascorp refer to the need to replenish TCFA funds used by Forestry Tasmania to fund its ordinary operational requirements?

(2)   If not, how will these funds be repaid if normal operations are unable to generate sufficient revenue?

(3)   (a)     Is there a danger the Commonwealth can terminate the TCFA agreement as warned by the Auditor-General; and

(b)    if so, will the State have to repay funds to the Commonwealth?

Mr AIRD replied -

(1)   The Letter of Comfort does not refer to the TCFA funding.

(2)   Forestry Tasmania is managing, and will continue to manage, its overall cash position to ensure that it meets its TCFA obligations over time.

(3)   (a)     Forestry Tasmania intends to meet all of its obligations under the TCFA.  Some of these obligations relate to the implementation of intensive forest management practices, which will occur over a number of years.

Forestry Tasmania is not aware of any issues that have been raised by the Australian Government regarding the funding provided under the TCFA.

(b)    Given the answer above, this is not applicable.

Unfunded Superannuation Liability - 16 November 2010

Ms FORREST asked a question of the Treasurer -

With regard the unfunded superannuation liability as at 30 June 2010 and indicated in the Preliminary Outcomes Report as being $4.868 million -

(1)   (a)     What is the estimated peak liability for unfunded superannuation in the intervening years up to 2035; and

(b)    in which year is it estimated that this peak liability will occur?

(2)   What is the estimated unfunded liability at the date of its proposed extinguishment in 2035?

Mr AIRD (Derwent - Treasurer) - Madam President, the answer contains a table and so I seek leave to incorporate it in Hansard.

Leave granted.

The answer read as follows:

(1)   (a)     The estimated peak in the unfunded superannuation liability is $4 737 million.

The projected peak liability is based on an actuarial assessment using long-term assumptions.

The unfunded superannuation liability in the Preliminary Outcomes Report is the valuation at 30 June 2010 using current assumptions in accordance with Australian Accounting Standards.

(b)    The estimated peak unfunded superannuation liability is expected to occur in 2024.

(2)   The estimated unfunded liability at the date of its proposed extinguishment in 2035 is $4 116 million.  The balance of SPA is on track to reaching this amount by 2035.

By way of further explanation, for projections of the unfunded liability, the Actuary uses a long-term discount rate to reduce the volatility of the projections.  However, when valuing the liability at 30 June each year, the accounting standards require the discount rate current at the time of reporting to be used.  The discount rate for the 30 June 2010 valuation was 5.35 per cent compared to the long-term average rate of 6 per cent used for long-term projections.  As a result, the projections of the unfunded superannuation liability are lower than the 30 June accounting standard valuation as the table below illustrates:

Employment - Participation Rate - 14 October 2010

[2.44 p.m.]

Ms FORREST (Question) - My question is to the Treasurer.  Treasurer, on the release of the August ABS employment figures, you claimed great success on the increase in participation rates for the same period.  The participation rate has increased 1.5 per cent in the last 12 months, however in view of the fact that Tasmania's participation rate continues to lag behind the national participation rate by 3.5 per cent and participation rates have actually fallen in Tasmania by 0.5 per cent since August 2008, how can you really claim success in this area?

Mr AIRD - Let's just say, easily.  Madam President, the reality is that there is a correlation between our participation rate and our unemployment rate and the participation rate affects the unemployment rate.  Historically, there has always been a gap between the national participation rate and the State participation rate.  While there was a slight drop in the last round of data relating to the participation rate, the trend over the past three or four months still shows an increase in our participation rate.

Ms Forrest - Compared with this time last year it is not.

Mr AIRD - The fact is though that we have improved the situation.  I have never been one to gild the lily about this data.  The fact is that there is emerging data now - just the data yesterday showed the level of private sector investment is improving.  The level of investment in commercial property is increasing.  There are signs to show that our economy is recovering but it is not consistent across all sectors.  I have always been wary of overstating or understating the case in terms of any data because in Tasmania it does fluctuate somewhat and that is why the trend series data is better than the seasonally adjusted data.

Ms Forrest - I was using the trends.

Mr AIRD - I know, I am not arguing about that at all.  I am just saying there are signs overall that our economy is making a recovery.  Given the level of data that came from the ABS yesterday that shows that there is an increase in private sector investment, which is what we have been looking for for a while, that is improving, that is a very good lead to improvement in, hopefully, the participation rate and the employment rate.

Government Business Enterprises - Insolvency Provisions - 14 October 2010

[2.35 p.m.]

Ms FORREST (Question) - My question is to the Treasurer. Do the insolvency provisions of Corporations Law have any application to a GBE and, if not, are there any statutory rules with regard to insolvency of GBEs or does common law apply?

Mr AIRD - The honourable member has asked questions similar to this before.  I would need to know a specific example of a particular provision so I could give a specific answer but let me say that there is always an expectation that all State-owned companies or GBEs should be operating and adhering to the general solvency provisions.  If there was anything to the contrary, if any GBE was acting in a way which indicated to me that they were trading while insolvent, it would require some action to be taken by government.  I would have to accept advice in relation to that particular entity and consider the circumstances.  That is a general answer to how a government would deal with any business.  Mind you, I would imagine there would be some preliminary discussions about how any particular GBE was trading before they got to that situation.

Forestry Tasmania - Lending Covenant - 14 October 2010

Ms FORREST asked a question of the Treasurer -

The recently released financial report of Forestry Tasmania states that Forestry Tasmania is currently in breach of a lending covenant but that Tascorp has agreed to waive the breach as a letter of comfort has been provided.

(1)   When did the breach of the covenant occur?

(2)   When was the Letter of Comfort provided?

(3)   What does the Letter of Comfort state; and

(4)   without the letter would Forestry Tasmania's directors have been able to sign their solvency declaration?

Mr AIRD replied -

(1)   Tascorp identified the breach of the covenant upon the review of Forestry Tasmania's 30 June 2009 financial statements.

(2)   The Letter of Comfort was provided on 11 August 2010.

(3)   The Letter of Comfort states that the Government has no intention of changing Forestry Tasmania's ownership or governance and it will ensure that Forestry Tasmania is able to meet any obligations to Tascorp, as and when they fall due.  The Letter of Comfort is limited to existing borrowings and has been provided to allow sufficient time for Forestry Tasmania and Tascorp to negotiate a revised set of loan covenants suitable to both parties.

(4)   In the absence of this letter, Forestry Tasmania would have sought to negotiate an immediate variation to its covenant with Tascorp.  It is not possible to speculate on the outcomes of such discussions, or on their implications for director determinations.

School Psychologists - Student Waiting Times - 13 October 2010

[2.55 p.m.]

Ms FORREST (Question) - My question is to the Minister for Education.  Minister, in answering a question on notice earlier this week regarding waiting times for students to see school psychologists I actually asked what the waiting times were for students to be seen in schools in the north-west region and you responded by saying that students were prioritised through a consultation process with the school principal but you made no reference to any waiting times.  Are you aware of waiting times for students who may not be classed as urgent or needing immediate assessment?

Ms THORP - Madam President, I thank the honourable member for her question but I think what she needs to realise is that it is a triage situation in the sense that a student or a teacher or a family member may identify that someone needs to see the school psychologist and they may have an appointment to see the school psychologist the very next morning -

Ms Forrest - They have been told to wait for six weeks or eight weeks.

Ms THORP - I have no idea what you are talking about in that reference.  Each school decides how serious the need is.  It is a school-based decision.  That is my answer.

Unfunded Superannuation Liability - 13 October 2010

[2.48 p.m.]

Ms FORREST (Question) - My question is to the Treasurer.  Treasurer, when am I going to get an answer to unanswered question  15 on the Notice Paper regarding the unfunded superannuation liability that I asked on 31 August this year?  Also I repeat the question of yesterday - as you did undertake to get that information and I hope you have it regarding the State Actuary's report, the triennial report, and the review and report that follow that - have you received a copy of this review and report?  If not, when do you expect it and will you table a copy of the report as soon as it is available?

Mr AIRD - In answer to the first part of the question, my understanding is that the prepared answer to your question on notice will be in front of Cabinet shortly - if not next Monday, the Monday after that.  I am just hedging here to make sure that I do not put an artificial time line on this but I believe it will be dealt with by Cabinet this Monday, but if it is not, it will be the following Monday.  Regarding the Actuary's report, I do not have any further information and as the member would be aware, I will release information if it is prudent to do so but some of the workings of the Actuary, because of some of the commercial undertakings or considerations, probably need to -

Ms Forrest - This might be public money we are talking about.

Mr AIRD - Notwithstanding that, I will endeavour to release as much information as I possibly can in relation to this matter.

Vacant Primary School Sites - 12 October 2010

[3.02 p.m.]

Ms FORREST (Question) - Madam President, my question is to the Minister for Education.  Minister, as you are aware, the Bowick Street campus of the Table Cape Primary School has been vacant for almost a year.  What is the plan for this site - for both the building and the land?  Further, what is the plan for the three Burnie primary school sites at Acton Primary, Upper Burnie Primary and Brooklyn Primary schools that will similarly be vacated on the opening of the new Romaine Park Primary School?

Ms THORP - Madam President, I thank the honourable member for her question and for giving me sufficient notice so that I could get the accurate information for her.  Table Cape Primary students previously located at the Bowick Street campus commenced at the Gibbons Street campus in February of this year.  The consolidation of classes onto the Gibbons Street campus represented a great outcome for the school community through the use of the BER funding and also proceeds from the upcoming sale of the Bowick Street campus.  The Bowick Street campus of the Table Cape Primary School has now been declared surplus by the Department of Education and it is therefore intended that the entire property, including both land and buildings, be sold.

Preliminary sale preparations such as survey and title creation are being completed by my department and the site was handed over to the Department of Treasury and Finance in April 2010.

Ms Forrest - Under the Treasury ownership now.

Ms THORP - The proceeds of the sale are dedicated to the building projects that are referred to but it is all handled by Treasury.  Treasury manages the sale process for the Department of Education and this includes offering the site to other government agencies.  As no other areas of government require the site -

Ms Forrest - Not even Housing Tasmania?

Ms THORP - No - the property will be placed on the open market following approval by the Treasurer.  No other government agencies require the site.  You would have to assume that included Housing.  Treasury has agreed to 100 per cent of net sales proceeds being retained by my department and in anticipation of this the funds have already been expended on the redevelopment project at the Gibbons Street campus.  Both the Brooklyn and Upper Burnie Primary schools will follow the same sale process which applied in respect to the Bowick Street campus of the Table Cape Primary School.  The preliminary sale preparations have commenced and it is anticipated that these sites will be handed over to Treasury around the middle of 2011 following the commencement of students at the new Romaine Park Primary School.  The Acton Primary School site will be retained by my department to support the establishment of a child and family centre.  The site will also accommodate the Early Childhood Intervention Service and Learning Services (North-West).

Unfunded Superannuation Liability - 12 October 2010

[2.54 p.m.]

Ms FORREST (Question) - My question is to the Treasurer.  Treasurer, the State Actuary is requested annually to review the cash flow and unfunded liabilities estimates and every three years undertakes a comprehensive review of the assumptions underpinning the unfunded liability calculation.  The most recent triannual review was scheduled to be undertaken at 30 June 2010.  Has this review been completed and have you received a copy of this review?  If not, when is it expected and will you table a copy of the review report as soon as it is available?

Mr AIRD - I thank the honourable member for her question.  I think the honourable member ought to get out and enjoy herself more.

Members laughing.

Madam PRESIDENT - Be careful.

Mr AIRD - I warn myself and I ignore my own warning at my peril, Madam President.

I do not know the answer to that question.  I will find out the information and get back to the honourable member as soon as I know -

Ms Forrest - Whether you have it or not?  You haven't, have you?

Mr AIRD - I have not seen anything, to be specific.

Mr Harriss - You ought to get out and enjoy yourself.

Mr AIRD - I do and that is why I cannot answer the question.

Members laughing.

Mr AIRD - Madam President, to be more specific, I have not seen any information from Treasury in relation to this matter.  As soon as I receive some advice from the department I will be in a position to make a comment about the actuary's report.

School Guidance Officers - 12 October 2010

Ms FORREST asked a question of the Minister for Education and Skills -

With regard to guidance officers in schools on the north-west coast -

(1)      How many guidance officers are available in schools to provide support, counselling and guidance to students?

(2)      How many positions remain unfilled and in what areas?

(3)      What are the waiting times for students to be seen in each school or area by a guidance officer?