Pilotage Services

Mrs GRUSOVIN: My question without notice is directed to the Minister for Small Business and Regional Development, Minister for Ports, Assistant Minister for Energy, and Assistant Minister for State Development. Will the Minister inform the House of the outcome of the tender process for pilotage services on Sydney Harbour and Botany Bay.

Mr SCULLY: I thank the honourable member for Heffron for her question and her interest in Sydney Harbour and Botany Bay ports. I am delighted to inform the House that a new contractor has been selected for the provision of pilotage services on Sydney Harbour and Botany Bay. More than $2 million in savings will flow to the industry from cuts in charges of almost 9 per cent. An open commercial tender process has been conducted by the Sydney Ports Corporation, including an independent representative on the panel, to select a contractor for the pilotage services for a three-year period. In line with the new commercial focus, which is at the centre of the Government's recent corporatisation of the State's ports, a major element of the process was a requirement that the successful tenderer provide direct benefits for port users on three levels - reduced charges, improved services and greater safety.

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Mr SPEAKER: Order! I call the honourable member for Port Macquarie to order.

Mr SCULLY: In relation to costs, the tender required the contractor to reduce charges to business by at least 5 per cent. I am pleased to announce that that requirement has been surpassed. The new contractor will provide an 8.8 per cent cut in charges for pilotage services. This cut will save industry an estimated $2.16 million over the three-year period of the contract. I announce today that the tender process has resulted in the selection of Sydney Sea Pilots Proprietary Limited as the new contractor for pilotage services for this city's critically important Sydney Harbour and Botany Bay ports.

Sydney Sea Pilots is a consortium formed by the 18 pilots currently operating at the ports. Under the new contract it will provide pilotage services for an estimated 4,200 ship movements per year for a three-year period commencing early next week. In addition to cost savings, other benefits will flow from the tender and from the Government's recent corporatisation of the State's major ports. A productivity improvement plan has been an essential part of the tender, requiring the contractor to deal with detailed performance and productivity target improvements each 12 months. The contractor is required to improve berth utilisation and flexibility, increased synergy with other service providers within the port community and the removal of any barriers to the attraction of new ship-based trade.

Mr SPEAKER: Order! I call the honourable member for Port Macquarie to order for the second time.

Mr SCULLY: The contractor will also be required to achieve by July next year accreditation under an international quality assurance system - AS 9002. This will ensure the highest quality pilotage service possible. The Government's corporatisation of the State's principal ports was a major reform aimed at increasing the efficiency of ports while retaining public ownership of important aspects. Corporatisation has put in place an improved competitive environment at the ports by instituting a new commercial focus. New South Wales ports form the best port system in Australia. The new contract for pilotage services on Sydney Harbour and Botany Bay confirms and enhances that reputation. The Opposition should congratulate the Government on its corporatisation process, as announced today. The Government's corporatisation plan has been an untold success. Do you want to hear about it?

Mr SPEAKER: Order! The Minister will address his remarks through the Chair.

Mr SCULLY: I believe the House wants to hear seven minutes worth of the corporatisation program of this Government.

Mr Cruickshank: All it will do is prove how little you know about the private sector. You proved that when you came to Murrumbidgee.

Mr SCULLY: I really should not respond to the behaviour of the honourable member for Murrumbidgee. I shall refrain from responding. I visited his electorate doing the right thing and supporting industry for him. He put proposals to me in my capacity as Minister for Regional Development and I have been happy to support some of those proposals.

Mr Kerr: On a point of order: my point of order is about relevance. The Minister is straying into personal relationships.

Mr Knight: On the point of order: there is a long-held tradition in this House that Ministers can respond to interjections. The honourable member for Murrumbidgee interjected not once, not twice, but on three occasions to provoke the Minister. It is clearly within the standing orders and traditional forms of this House for the Minister to be allowed to respond.

Mr SPEAKER: Order! Although the point of order of the Minister for Public Works and Services has some substance, I ask the Minister to return to the subject matter of the question.

Mr SCULLY: The Murrumbidgee Irrigation Area is important to the growth and facilitation of trade through our ports. I have been particularly interested in trying to harness increased exports through this port system. I will work with the Opposition to ensure that Sydney, Port Botany, Port Kembla and Newcastle are the premier ports of Australia. I look forward to the continued support from the Opposition. Honourable members want to hear about the Government's corporatisation program. It is another tick for the Government; another promise fulfilled. This is a government that fulfils its promises. The Government said it would corporatise ports, and that has been done. I cannot get a question from the Opposition about ports. Opposition members are embarrassed by the performance of the Government.

Mr Collins: On a point of order: it is obvious that the Minister has run out of things to say: he did so some time ago. He is plainly abusing question time. This Government is not prepared to face questions. The Minister is using up time that should be allowed for further questions to be asked of the Government.

Mr Whelan: On the point of order: I would like the Clerks to verify what I am about to say, that the Opposition has already asked five questions during this question time. Her Majesty's Opposition has asked five questions during question time.

[Interruption]

You are a past master, and so is the member sitting next to you.

Mr SPEAKER: Order! The Leader of the House will address his remarks through the Chair and state his point of order.

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Mr Whelan: The standing orders have been complied with. The Opposition has asked five questions during this question time. Unlike honourable members of the Opposition I am very interested in what the Minister has to say.

Mr Knight: On the point of order: as the Leader of the House has said, standing orders provide for a minimum of five questions from this side of the House and five questions from the other side of the House, and honourable members opposite have had -

[Interruption]

They are the standing orders of honourable members opposite. They are the standing orders brought in by honourable members opposite.

Mr SPEAKER: Order! I do not wish to hear further argument on the point of order. The Minister will conclude his answer as expeditiously as possible.

Mr SCULLY: The only time running out in this debate is the time the Leader of the Opposition will continue to be the Leader of the Opposition. I am very happy to inform the House of the Government's reform program. It is quite different. If honourable members opposite had been elected they would have flogged off the ports. That is what they would have done - they would have sold them off. They are embarrassed by the fact that the Government can tell the people of New South Wales that it is about polishing the family silver, but honourable members opposite would have flogged it off. Where is the Leader of the Opposition off to?

Mr Kerr: On a point of order: Mr Speaker, you have admonished the Minister a number of times and asked him to get back to answering the question. He has complained that he has not been asked questions by the Opposition. It has been explained to him by the Leader of the House, that the Opposition has asked a number of questions and he should proceed with the answer to the question.

Mr SPEAKER: Order! I will not hear further points of order on the matter. It is obvious that the Minister was about to conclude his answer.

Mr SCULLY: I only have a few more remarks to make on this particular -

Mr SPEAKER: Order! The Minister will resume his seat. The time for questions has expired.

Questions without notice concluded.