Full Day Hansard Transcript (Legislative Assembly, 7 September 1993, Corrected Copy)

Mr Speaker (The Hon. Kevin Richard Rozzoli) took the chair at 2.15 p.m.

Mr Speaker offered the Prayer.


Mr SPEAKER: Order! Pursuant to the resolution of the House of 12th May, 1993, I advise honourable members that a single television camera will operate in the House for the duration of question time during the next two weeks, on a trial basis.

The camera will be operated by an independent production company under contract to the Legislative Assembly. Access to the film will be available to participating media organisations under a separate agreement. As far as they are applicable, the House of Representatives' "Conditions for Broadcasting" and "Guidelines for Camera Operators" will apply.

This arrangement is an interim measure while further negotiations take place between media management and the Assembly in order to establish a permanent, versatile and compatible filming and distributing facility. If the arrangements are satisfactory during this period, the contract will be extended as required.

The Standing Orders and Procedure Committee will meet on Thursday next to discuss further implementation of the televising of proceedings within the Chamber. I place on record my appreciation of the co-operation extended to the House by the television channels in making this trial possible.


Mr SPEAKER: I have to inform the House that on 27th July, 1993, I received a letter from Anthony Charles Packard resigning his seat as member for the electoral district of The Hills.

Mr Speaker also informed the House that his writ issued on 9th August, 1993, for the election of a member to serve in the Legislative Assembly for the electoral district of The Hills in the room of Anthony Charles Packard, resigned, had been duly returned to him with a certificate endorsed thereon by the Returning Officer of the election of Michael John Richardson, to serve as such member.

Mr Richardson took and subscribed the oath of allegiance and signed the roll.

Royal assent to the following bills reported:

Constitution (Legislative Council Reconstitution) Savings Bill
Antiochian Orthodox Church Property Trust Bill
Cattle Compensation (Amendment) Bill
Dog (Amendment) Bill
Crimes (Dogs) Amendment Bill
Electricity (Amendment) Bill
Fair Trading (Lay-by) Amendment Bill
Guardianship (Amendment) Bill
HomeFund Select Committee (Special Provisions) Bill
Liquor (Amendment) Bill
Registered Clubs (Amendment) Bill
Local Government Bill
Impounding Bill
Local Government (Consequential Provisions) Bill
Roads Bill
Traffic (Parking Regulation) Amendment Bill
Mines Inspection (Amendment) Bill
New South Wales-Queensland Border Rivers (Amendment) Bill
Ombudsman (Amendment) Bill
Police Service (Complaints, Discipline and Appeals) Amendment Bill
Police Service (Management) Amendment Bill
Protection of the Environment Administration (Amendment) Bill
Stamp Duties (Amendment) Bill
Superannuation Legislation (Miscellaneous Amendments) Bill
Centennial Park and Moore Park Trust (Royal Easter Show) Amendment Bill
Film and Video Tape Classification (Amendment) Bill
Justices (Amendment) Bill
Statute Law (Miscellaneous Provisions) Bill
Statute Law (Penalties) Bill
Subordinate Legislation (Amendment) Bill

Mr FAHEY: I wish to inform the House that on 26th May, 1993, I submitted to the Lieutenant Governor my resignation as Premier and Treasurer, and as a member of the Executive Council - an action which involved the resignation of all Ministers from their offices and as members of the Executive Council. The Lieutenant Governor then approved my recommendations as to the composition of a new ministry and proceeded to swear me and the following persons in as members of the Executive Council and to the offices indicated: the Hon. John Joseph Fahey, M.P., Premier, and Minister for Economic Development; the Hon. Ian Morton Armstrong, O.B.E., M.P., Deputy Premier, Minister for Public Works, and Minister for Ports; the Hon. Bruce George Baird, M.P., Minister for Transport, and Minister for Roads; the Hon. George Souris, M.P., Minister for Land and Water Conservation; the Hon. John Planta Hannaford, M.L.C., Attorney General, Minister for Justice, and Vice President of the Executive Council; the Hon. Robert James Webster, M.L.C., Minister for Planning, and Minister for Housing; the Hon. Garry Bruce West, M.P., Minister for Energy, and Minister for Local Government and
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Co-operatives; the Hon. Virginia Anne Chadwick, M.L.C., Minister for Education, Training and Youth Affairs, Minister for Tourism, and Minister Assisting the Premier; the Hon. Peter Edward James Collins, M.P., Treasurer, and Minister for the Arts; the Hon. Ronald Anthony Phillips, M.P., Minister for Health; the Hon. Kerry Anne Chikarovski, M.P., Minister for Industrial Relations and Employment, and Minister for the Status of Women; the Hon. Ian Raymond Causley, M.P., Minister for Agriculture and Fisheries, and Minister for Mines; the Hon. Terence Allan Griffiths, M.P., Minister for Police, and Minister for Emergency Services; the Hon. James Alan Longley, M.P., Minister for Community Services, and Minister for Aboriginal Affairs; the Hon. Christopher Peter Hartcher, M.P., Minister for the Environment; the Hon. Anne Margaret Cohen, M.P., Chief Secretary, and Minister for Administrative Services; the Hon. Michael Stephen Photios, M.P., Minister for Multicultural and Ethnic Affairs, and Minister Assisting the Minister for Justice; the Hon. Wendy Susan Machin, M.P., Minister for Consumer Affairs, and Minister Assisting the Minister for Roads; the Hon. Christopher John Downy, M.P., Minister for Sport, Recreation and Racing; and the Hon. Raymond Francis Chappell, M.P., Minister for Small Business, and Minister for Regional Development.

I wish also to inform the House of the appointment of the following persons as parliamentary secretaries: Donald Frederick Charles Beck, M.P., Parliamentary Secretary Assisting the Deputy Premier, Minister for Public Works and Ports; the Hon. Richard Thomas Marshall Bull, M.L.C., Parliamentary Secretary Assisting the Minister for Education, Training and Youth Affairs, Minister for Tourism and Minister Assisting the Premier; Wayne Ashley Merton, M.P., Parliamentary Secretary Assisting the Minister for Transport and Roads; Donald Loftus Page, M.P., Parliamentary Secretary Assisting the Minister for Planning and Minister for Housing; the Hon. Dr Brian Patrick Victor Pezzutti, M.L.C., Parliamentary Secretary Assisting the Minister for Health; the Hon. James Miltiadis Samios, M.L.C., Parliamentary Secretary Assisting the Minister for Multicultural and Ethnic Affairs, and Parliamentary Secretary Assisting the Minister for the Arts; the Hon. Michael Robert Yabsley, M.P., Parliamentary Secretary Assisting the Premier; and Paul John Zammit, M.P., Parliamentary Secretary Assisting the Treasurer, and Parliamentary Secretary Assisting the Minister for Aboriginal Affairs.

The Attorney General will be represented in this House by the Minister for the Environment and the Minister for Justice will be represented in this House by the Minister for Multicultural and Ethnic Affairs. The Minister for Planning and Minister for Housing will be represented in this House by the Minister for Land and Water Conservation. The Minister for Education, Training and Youth Affairs will be represented in this House by the Minister for Industrial Relations and Employment and Status of Women. The Minister for Tourism will be represented in this House by the Minister for Transport and Roads. I wish to inform the House that the Hon. Garry Bruce West, M.P., will be Leader of the Government in the House and that the honourable member for Cronulla, Malcolm John Kerr, was appointed Government Whip as from 29th June, 1993.


Mr ARMSTRONG: I wish to inform the House of my election as Leader of the National Party, the election of the Hon. George Souris as Deputy Leader of the National Party, and the election of Bruce Leslie Jeffery as National Party Whip as from 28th June, 1993.


Mr SPEAKER: Order! I inform the House that I have received a communication from the Minister for Consumer Affairs and Minister Assisting the Minister for Roads resigning from the Office of Chairman of Committees of the Whole House.

Ms MACHIN (Port Macquarie - Minister for Consumer Affairs, and Minister Assisting the Minister for Roads) [2.24]: I move:

That John Harcourt Turner be Chairman of Committees of the Whole House.

I have great pleasure in moving the nomination of John Turner.

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

Ms MACHIN: The office of Chairman of Committees is a very old and historical position in Parliament, one that I was honoured to hold for four years and one that I enjoyed very much. I am pleased that it is my political neighbour who will follow me in this office. The origin of Chairman of Committees of the Whole House goes back to the fourteenth century and its concept is to enable all honourable members to participate in parliamentary debate in what may be described as a less formal way. Certainly that has been happening in this Parliament over the past couple of years. The honourable member for Myall Lakes is an apt person to take on this position. He follows on from the former member for Upper Hunter and subsequently Gloucester, in the person of Leon Punch, whom I had the honour of following in this Parliamentin both his seat and this office. Leon Punch served also as Acting-Speaker - his name is displayed somewhere in these halls - as did Jim Brown, a former member for Oxley, who actually got to wear the wig and have his photograph taken in it. That photograph hangs among those of other former Speakers of this House.

In this Parliament Chairman of Committees of the Whole House is traditionally a National Party office in coalition and one that it is happy to have. John Turner is a strong National Party member and a strong coalitionist. He was elected to Parliament in
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1988. Prior to that he had shown his interest in politics by standing at two Federal elections, in 1984 and in 1987. He is a former deputy mayor of Cessnock City Council and served on that council with distinction for seven years. In Parliament he is Chairman of the Committee on the Office of the Ombudsman and is a member of the Committee on the Independent Commission Against Corruption. I think members of the Opposition will concede that he does an excellent job in his committee responsibilities.

John Turner is known as an enthusiastic parliamentarian: he does not pull any punches, and he always demonstrates a capacity to be a fair member of Parliament and a fair man. Those attributes will hold him in good stead. He is also a lawyer, but those of us who are non-lawyers will not hold that against him. His legal knowledge and the interest he has shown in the procedures of this House will make him an excellent Chairman of Committees of the Whole House. I know, Mr Speaker, that he will honour the traditions of this House and will follow the good example that you have set as a very fair and independent Speaker. Sometimes it is a little constraining to occupy the Speaker's Chair, but I am sure that that will not be an inhibiting factor for the honourable member for Myall Lakes and he will perform both jobs well. It gives me great pleasure to move the nomination of John Harcourt Turner for election to the position of Chairman of Committees of the Whole House.

Mr JEFFERY (Oxley) [2.28]: I have great pleasure in seconding the nomination of my colleague and friend Mr John Turner, the honourable member for Myall Lakes, to the position of Chairman of Committees of this honourable House. The honourable member for Myall Lakes is a most worthy person to fill this position, not only because of his fine record as Chairman of the Committee on the Office of the Ombudsman and his involvement in various legislative committees, but also because of his legal background and his very broad experience in the community. John Harcourt Turner was born in 1949. I am not sure what the name "Harcourt" stands for, but I have no doubt that it is a family name, just as the names Gerald Beresford Ponsonby are family names of the honourable member for Dubbo.

Mr SPEAKER: Order! There is far too much interjection and audible conversation from members on both sides of the Chamber. I ask all honourable members to be somewhat more orderly and to be respectful of the person who has the call.

Mr JEFFERY: John Turner is a mature family man. He has a delightful wife, who is in the gallery today, and three lovely children - two of whom have grown up - Jacqueline, Christopher and Amanda. John Turner was first elected as the member for Myall Lakes on 19th March, 1988.

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

Mr JEFFERY: John Turner has provided in this esteemed Parliament outstanding representation for the people of the Great Lakes Shire and Taree district. He has a keen interest in the needs of his constituents. He is intelligent and deals practically with the often difficult job of representing a rural constituency and coastal seat - a constituency with a diverse population. As we have heard from the Minister for Consumer Affairs, John Turner, apart from his diligent service to the people of his electorate, has made an outstanding contribution to this Parliament with his debating skills and his attention to detail.

John Turner, in this new position, will bring to this House a sense of duty and respect for the traditions of our Westminster system. As the Minister for Consumer Affairs said, John, prior to entering Parliament, was an alderman on Cessnock City Council and deputy mayor in 1987. In the Myall Lakes area John represents commercial and manufacturing activities, industry, tourism, fishing, oyster growing and small businesses. However, the oysters grown in his electorate are not as good as those that are grown in mine. The position of Chairman of Committees of the Whole House, which is a highly honourable one, carries with it a fine tradition. In the life of a Parliament the Chairman of Committees must exercise great judgment, tolerance, tact and diplomacy. In fact, the Parliament must show great respect and high regard for the office of Chairman of Committees and Deputy-Speaker.

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

Mr JEFFERY: The honourable member for Myall Lakes is the perfect choice for Chairman of Committees. As Chairman he will be primarily responsible for the Committee stage of every bill. All honourable members would know that the Chairman is a powerful vehicle in the legislative process. For the benefit of our new member - I congratulate him on his appointment - the Committee of the Whole is an important and serious part of legislative debate in this House. John Turner will carry out this role with flair and determination. Without hesitation I ask all honourable members to support the nomination of John Harcourt Turner for the esteemed position of Chairman of Committees of the Whole House and Deputy-Speaker.

Motion agreed to.

Mr Turner declared elected.

Mr TURNER (Myall Lakes) [2.34]: It would be remiss of me if I did not thank the House for according me the privilege of being elected Deputy-Speaker and Chairman of Committees of the New South Wales Legislative Assembly. It is obviously a great honour to serve as the thirty-eighth Chairman of Committees. I hope I perform that task with fairness and impartiality. I hope I will be firm but fair. The average life of a chairman of committees is about three and a quarter years, but I know that two chairmen of committees have held that position for only one day. I hope my tenure will be somewhat longer.

My desire to be even-handed stems from my knowledge of the backbench. Members of the backbench have a sense of fair play, even-handedness and impartiality in anything that they do. I hope that
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I will be able to hone those skills and become more even-handed. There is no doubt that I will have to go on to a learning curve, but I hope it is not as circuitous as the J-curve. I hope I do not have to call the honourable member for Blacktown to order as many times as you do, Mr Speaker. She has already started to interject, even before I am in the chair.

I thank the Minister for Consumer Affairs and Minister Assisting the Minister for Roads for nominating me and I thank the honourable member for Oxley for seconding me for the position. I congratulate the Minister for Consumer Affairs on her elevation to the ministry. I congratulate the honourable member for Oxley on his appointment as National Party Whip. I also thank the Minister for Consumer Affairs for the four and a half years that she served as Chairman of Committees. She did so in the face of hardship and difficult times, but she carried out her duties in an extraordinary way.

Finally, this is a tempestuous time in the Parliament - a time when restraint is needed. Let me reflect on the sentiments of L. S. Cushing, a former Clerk of the House of Representatives in Massachusetts, who said, "The great purpose of all the rules and forms by which the business of a Legislative Assembly is conducted, whether constitutional, legal or parliamentary in their origins, is to subserve the will of the assembly rather than to restrain it; to facilitate and not to obstruct, the expression of its deliberate sensors". I thank the House for its indulgence.


Mr SPEAKER: Order! I inform the House that I have received the resignation of Raymond Francis Chappell from the position of Temporary Chairman of Committees. Pursuant to the provisions of Standing Order 28A, I hereby nominate Barry William Rixon to act as Temporary Chairman of Committees whenever requested so to do by, or in the absence of the Chairman of Committees.


Mr Speaker, pursuant to section 78(1) of the Independent Commission Against Corruption Act, laid upon the table the report of the Independent Commission Against Corruption on investigation into the Office of the Ombudsman, dated June 1993.

Ordered to be printed.


Mr Speaker announced receipt of the report of the Office of the Ombudsman on the Department of Community Services and Brougham Residential Unit, dated 12th August, 1993.

Mr Speaker announced receipt of the report of the Legislation Committee on the Whistleblowers Protection Bill together with the evidence taken before the Committee, dated June 1993.


Mr Speaker laid upon the table the report of the Department of the Legislative Assembly for the year ended 30th June, 1992.


The Deputy Clerk, pursuant to the Public Finance and Audit Act, informed the House that he had received the Auditor-General's Report for 1993, Volume 1.


The Deputy Clerk, pursuant to the Public Finance and Audit Act 1983, announced receipt of the following reports: Review of Special Auditing Function of the New South Wales Auditor-General's Office, dated June 1993; Public Accounts Special Committee Inquiry into the Funding of Health Infrastructure and Services in New South Wales, dated 30th June, 1993; Public Accounts Internal Audit in the New South Wales Public Sector, dated June 1993; and Public Accounts Committee concerning Infrastructure Management and Financing in New South Wales: Volume 1: From Concept to Contract - Management of Infrastructure Projects, dated July 1993.


The Deputy Clerk, pursuant to Section 68A of the Independent Commission Against Corruption Act, announced receipt of the following reports: Committee on the Independent Commission Against Corruption: Review of the ICAC Act, dated May 1993; and Committee on the Independent Commission Against Corruption: Inquiry into Section 52 of the ICAC Act and Legal Representation before the ICAC, dated June 1993.


The Deputy Clerk announced receipt of the Report of the Joint Select Committee upon the Sydney Water Board: Issues Paper, dated June 1993.

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The Deputy Clerk, pursuant to a resolution of the House of 13th May, 1993, informed the House that Stephen Mark O'Doherty would serve on the Joint Select Committee upon the Sydney Water Board in place of Anthony Charles Packard, resigned.


Motion by Mr Beckroge agreed to:

That leave of absence for the present session be granted to Robert Joseph Wilson Harrison, member for Kiama, on account of absence from the State.

Mr CARR: My question is directed to the Treasurer. Has New South Wales Treasury engaged the public relations firm Cosway Creative Public Relations to promote the State Budget? What is the cost?

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

Mr COLLINS: Cosways have been engaged and are, at this moment, doing an excellent job in the Budget lock-up. Cosways were engaged after expressions of interest were called. A field of about four major tenderers was arrived at. Cosways won the bid and the amount which is being spent -

Mr Scully: And the winner is?

Mr COLLINS: The winners are the people of New South Wales. One can always count on the honourable member for Smithfield. It was decided to make this Budget a plain language Budget, that is, instead of giving out information which was indecipherable, to explain it in terms that even the honourable member for Smithfield would understand. Many complaints have been made in the past by people such as the honourable member for Smithfield that they cannot understand what the Budget is all about.

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

Mr COLLINS: We have broken it down into plain language that even he will understand. We are dealing this afternoon with a Budget of about $21 billion. Again, for Opposition members who get their m's and b's mixed up, that is $21,000 million. The amount we are spending explaining the expenditure of $21,000 million is less than 0.0008 per cent of the State Budget. In other words, the fee being paid to Cosways is $164,000. I ask: What would it cost to establish a unit like this in Treasury? As there is no communications unit in Treasury, what would it cost if we wanted to set one up?

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

Mr COLLINS: For the one day of the year when we explain where we are going to spend $21,000 million, what would it cost if we wanted to set up our own unit? It would cost a bare minimum of $350,000 to establish the same capacity in Treasury. The answers are Cosway's and $164,000. If the Leader of the Opposition did not get it the first time, that is 0.0008 per cent of the Budget to be spent explaining where the Government is spending $21,000 million.


Mr SMALL: My question without notice is directed to the Deputy Premier, Minister for Public Works and Minister for Ports. What effect has the Federal Budget had on rural New South Wales? In particular, how will the increase in petrol taxes affect business and families in rural centres?

Mr ARMSTRONG: The honourable member for Murray has asked a timely question. Not long ago we watched a preening Paul Keating, the Prime Minster, tell an incredulous crowd of true believers, "This is the sweetest victory of all." This was the get-out-of-jail moment, the unbelievable win against all the odds - the proof that one can lie one's way out of trouble. Remember back in November last year the Prime Minister told us, "What I am promising is not to put up tax". That is what the Labor Prime Minister promised in November last year. In May this year, just two months or so before delivering the Budget, he told us, "We will be following the policy we have been following, that is, to keep Australia a low tax country". They were two promises made about 18 months apart. What unmitigated lies they turned out to be! What an outrageous insult they were to ordinary Australians who had put their faith in a snake oil salesman!

The August Federal Budget delivered a crushing blow to the hopes and aspirations of many thousands of small Australian business people, ordinary men and women in the street, battlers, the elderly, and the greatest strugglers of all - the farmers and country people of this nation. When hope and vision were essential, when a truly constructive program of revival was required and when the nation needed a common purpose and unity, the Prime Minister delivered a total betrayal of the people of Australia. The Labor Party is unlikely to allow him to survive that act of betrayal, because already there is talk of whether he can survive the present Parliament. But the important thing is whether Australia can survive the Federal Budget and all of the horrors it contains in its present form.

Australians were shocked, as they still are, at the magnitude of Paul Keating's betrayal. His most trusted lieutenants cried foul, and caucus took a cane to him and his class traitor, the Treasurer. Unrepentant, the Prime Minister went on national
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television last Sunday and tried to tell the people that he was in full control and that the papers got it wrong. He tried to blame the press. But who believes him any more? Nobody does. While his caucus comrades in Canberra were expressing their outrage at the Keating Budget, where was the Leader of the New South Wales Opposition? He was found expressing his outrage on behalf of the New South Wales taxpayers in the luxury of the Grand Hotel in St Petersburg, where he holed up for a few days to recover from the rigours of a European camping trip.

While Labor Council Secretary, Michael Easson, thundered that the Keating Budget was an act of bastardry, where was the camping leader's left-hand man? Closer to Oxford Street than Sussex Street would be a guess. But all that he could muster was a lame claim that it was not the budget that we expected. One does not have to delve into the Budget too far to see how punishing it will be for small businesses, rural families and primary producers. Let us look at the hard core of the Budget and how it will punish people in the bush.

An increase in the excise on petrol and dutiable diesel of 3c a litre now, and increasing to 5c a litre in August next year, and for leaded petrol 10c a litre by 1995, will particularly disadvantage country people in New South Wales. They drive long distances and therefore have to spend more on petrol. The goods they buy are transported to them by truck, so prices will increase and farm and small business costs will blow out further. For them family food and transport costs will increase by much more than for city dwellers. The increased excise on fuel is expected to raise an additional $735 million for the Federal Government, increasing to $1,350 million in 1996-97. The new fuel excise will represent a $580 million tax on business, much of it in country New South Wales.

Mr Cochran: How much will be spent on the roads?

Mr ARMSTRONG: Road funding has been slashed from $1,628 million in 1992-93 to $813 million in 1994-95, with New South Wales expected to bear the brunt of the reduction. Added to that, the black-spot elimination program has been totally abandoned - a move that will obviously lead to more deaths on country roads. The great Australian wool industry hardly rated a mention in the Keating Budget, other than the announcement that the wool tax will rise from 8.5 per cent to 12 per cent from 1st July, 1994 - yet another blow to the State's struggling woolgrowers, who will hardly be heartened by the further news that the $20 million wool promotion campaign will be abolished on 30th June next year.

Little has been said about the huge impact the 1992 increase in excise on marine fuels will have on coastal shipping costs. It is estimated that the annual cost to coastal shipping will be increased by $16.1 million by August next year. This will completely obliterate the savings achieved by maritime reforms. The New South Wales Government has reduced wharfage costs by 10 per cent in the past three months. We have done our bit in regard to port reforms; but Labor has more than soaked that up by increasing the costs of marine activities by $16.1 million. Where is the Federal Government's contribution to port reform in Australia, if that is the best it can do?

Paul Keating's budget of betrayal has pursued relentlessly its target of punishing rural industries, and the wine industry did not escape. Ignoring the vital contribution the wine industry makes to regional development, tourism and export earning capacity, Paul Keating's brain surgeons rendered the industry unconscious, with a 55 per cent increase in wholesale sales tax. It is expected that the price increases forced by the Federal Government's tax increase will cause a significant drop in domestic consumption in this State, equivalent to 35 million litres, or 50,000 tonnes of wine grapes. The loss of the domestic markets will cut industry investment programs by an equivalent amount.

In fact, investments totalling twice the amount that was required to establish the Hunter Valley will be lost, not to mention the accompanying income generation and regional development benefits. Such investment would have pumped $62.5 million into the economies of regional New South Wales from grape planting alone, which would generate downstream benefits of $250 million, as well as provide ongoing benefits of long-term employment. It is clear that the Federal Government's Budget has been a disaster for Australia - a fact acknowledged by the labour movement, unions, churches and all sections of society. This morning it was stated in the press that more than 70 per cent of Australians are demanding a new budget. Generally speaking, country people are fairly tolerant, but on this occasion they have been dealt a blow from which many will not recover. Once again Paul Keating, the Prime Minister - the man who, during the election campaign, stated that things were pretty good in the wool industry - has turned his back on rural Australia. He still does not recognise that the true wealth of this country generates from rural industries, the primary industries of this country.


Mr WHELAN: I address a question without notice to the Minister for Health. Did the Treasurer privately negotiate a settlement with officers of the Department of Health after failing in his personal defamation action? As a result is the department out of pocket in excess of $100,000? Was the Minister advised of, and did he consent to, the Treasurer's proposals?

Mr PHILLIPS: I had absolutely nothing to do with any of the processes, decisions or information. Therefore, I will need to seek the information sought by the honourable member.

Later,

Mr PHILLIPS: Further to a question asked earlier by the honourable member for Ashfield which, I understand, relates to a case between Mr Peter
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Collins, M.P., who was then the member for Willoughby and in Opposition, and Dr Michael Ryan, a former employee of the Department of Health. As I understand it, the question had three parts, one of which was: Did the Department of Health negotiate with the Treasurer over a settlement? I am advised by the department that the answer is no. Another part was: Did the Minister privately negotiate with the Treasurer over the settlement? The answer is definitely no. Another part of the question was: Is the Department of Health out of pocket by over $100,000? I am advised by the Department of Health that it was not a party to the litigation. Under the terms of an indemnity agreement made with the former employee, well before I became the Minister, the department has met the greater proportion of the employee's legal costs.


Mr TINK: I direct my question without notice to the Minister for Multicultural and Ethnic Affairs. What steps have been taken to ensure the implementation of the Charter of Principles for a Culturally Diverse Society since its launch by the Premier in March this year?

Mr PHOTIOS: I thank the honourable member for Eastwood for his particular interest in multicultural affairs. It should not surprise honourable members that in the past couple of weeks, together with my friend and colleague the honourable member for Gladesville, the honourable member for Eastwood has made strong and energetic representations on behalf of Christian Community Aid for the provision of an ethnic support worker and a neighbourhood networking program. I look forward to addressing the issue sympathetically. The charter of principles for a culturally diverse society is, without doubt, a ground-breaking, landmark document. It is the most important statement on ethnic affairs to be introduced to date by any government in Australia. It has been welcomed broadly by ethnic and multicultural communities, and the Federal Labor Government and State governments of all political persuasions have adopted it as the model to be implemented throughout the nation.

The Fahey Government has, for the first time, developed a model of approach to multicultural and ethnic affairs within its culturally diverse society charter. It also established for the first time anywhere in Australia a stand-alone portfolio for ethnic and multicultural affairs. That is of fundamental importance. The record should be put straight from the very beginning because honourable members opposite want to relegate one of the most important constituencies in Australia once more to being a division of that travelling road show of the Leader of the Opposition, who seems to spend more time overseas than to his responsibilities as shadow minister for ethnic affairs, representing people of non-English speaking backgrounds.

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

Mr PHOTIOS: Honourable members would not be surprised to hear that since being given the ethnic affairs portfolio, I have attended 160 functions on behalf of the Fahey Government. How many has the shadow minister for ethnic affairs, the honourable member for Maroubra, attended in that time? Not 160, not 100, not 10, not even five. The number is going down and falling fast. He has attended only two.

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

Mr PHOTIOS: The shadow minister for ethnic affairs has attended two functions, both relating to the Italian community. One of those functions celebrated the sister-city relationship between Sydney and Florence. My challenge to the shadow minister for ethnic affairs is to get real and to get serious about ethnic affairs, as this charter seeks to do.

[Interruption]

It is not good enough for him to interject. People want to see him on the ground. Out there in ethnic Australia people are asking, "Is anybody home? Where are you on the ground as a community based shadow minister for ethnic affairs?" It is simply not good enough to reside in Venice day in, day out.

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

Mr PHOTIOS: On the back of a gondola is where he is to be found.

Mr Gibson: Gondolier?

Mr PHOTIOS: I have chosen my words most carefully.

Mr SPEAKER: Order! There is far to much interjection from both sides of the House.

Mr PHOTIOS: It is high time that honourable members opposite recognised that 35.7 per cent of the population over the age of 15 in New South Wales are of non-English speaking backgrounds and that two-thirds of the State's population were born overseas, or their parents or grandparents were born overseas.

Mr SPEAKER: Order! There is far too much interjection. I call the honourable member for Canterbury to order.

Mr PHOTIOS: We are doing our best, of course, to meet the needs of all members of our culturally diverse society, which is just what the charter of principles is all about. The charter represents the philosophical framework for progressive, positive change within the public sector; it is not about providing privileges to people from non-English speaking backgrounds but putting them on an equal footing. It is high time that was done in this State and around the country and that is what the Premier and this Government are doing with the charter. Only two weeks ago the Premier, the Chairman of the Ethnic Affairs Commission, Stepan Kerkyasharian, and I launched the charter to all senior
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executive bureaucrats and we made four principles very clear. They are: that all individuals should have the opportunity to participate in public life; that there be respect for the culture, language and religion of others; that programs provided by the New South Wales Government institutions should be open to all; and that recognition of the rich, linguistic and cultural aspects of our population must be firmly bedded in all government policy and administration.

The charter, therefore, is a vital step in maximising the potential of the diversity for the benefit of all Australians. Though it could be said that the charter is, in some measure, a motherhood statement, what is important about this statement, like all motherhood statements, is that the Government is determined, through the due processes that the Premier announced two weeks ago, to make sure it is implemented at all levels of government. First, progress has commenced with the establishment of a task force to develop guidelines and manuals for all government departments and statutory authorities to make sure that the whole of government implements those principles in the administration of the different portfolios. I have announced a task force of representatives of key government departments together with the Ethnic Affairs Commission to help put that into practice and, of course, to monitor the target departments implementation. They will be required not simply to report on an annual basis but on a regular basis with respect to key human resource portfolios.

All departments will be reporting and the implementation procedure will be binding; so binding that the Premier has sought from every government department and statutory authority a statement of intent - a detailed statement - as to how they will implement the procedures. I shall refer to some of the good things this Government is doing in a real can do way that demonstrates that the charter is already a reality. It is important to note first that this country is suffering from underutilisation in the migrant work force at an annual cost of approximately $250 million. As a consequence, the Government's Accord has established a task force -

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

Mr PHOTIOS: - whose responsibility it will be to take up the recommendations of the report -

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

Mr PHOTIOS: - on migrant retrenched workers to make sure there is real recognition of those opportunities.

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

Mr PHOTIOS: So much so, that the Minister for Industrial Relations and Employment, as has been previously announced, has allocated in this budget $900,000 for a program to be developed by the Migrant Employment and Qualifications Board to provide for better employment of migrant workers. An amount of $400,000 has been allocated to ethnic groups in the Illawarra, Newcastle and Sydney areas, as previously announced in the last two weeks by the Minister for Community Services. And the Minister for the Arts, who is responsible for the Budget, is developing as part of this budgetary process a recently announced $260,000 program recognising not just the cultural diversity of our society but the importance of multicultural arts. In conclusion, I say that we are absolutely committed to making sure the charter for a culturally diverse society works; it is a landmark document. We in Australia to a man and a woman in the migrant community are extremely proud of that charter -

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

Mr PHOTIOS: - and together with the very important work that our migrant community is making on the Olympic front, we look forward to making sure this charter works both ways without embedding any entrenched privileges but providing real opportunity, equity and participation.


Mr CARR: My question is directed to the Premier. As the Premier recently guaranteed $35 million to The Hills shire, will he now provide Letona with a $5 million one-off grant to ensure that the only food cannery in New South Wales stays open and 237 full-time jobs in Leeton and Batlow are safe?

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

Mr FAHEY: Five minutes back from the northern summer, down to Letona he goes and returns telling a heap of lies about discussions he has had with a receiver -

Mr SPEAKER: Order! I call the Leader of the Opposition to order. I call the Deputy Leader of the Opposition to order.

Mr FAHEY: - and with the people of Leeton. The Leader of the Opposition knows - and if he does not he ought to - that since 1984 the Letona Co-operative has been propped up by State and Federal governments. Approximately $40 million has been provided to subsidise that operation. This Government has continued to back up the State Bank in the loans it granted to Letona; the bank has extended again and again the times on the requirements to meet certain deadlines; and the cannery has had support through consecutive Ministers for Agriculture, the Hon. Ian Armstrong and the Hon. Ian Causley. The people running the co-operative have failed to address so much by way of structural change to get their house in order, despite considerable assistance.

This Government is concerned about Letona and I assure the House that the honourable member for Murrumbidgee is concerned and has worked tirelessly in an attempt to assist them in getting through the
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difficulty they have experienced. Right now the best thing that can happen in the interests of Letona is that the receiver should go about doing his job. We cannot continue to pour taxpayers' money into what is effectively a private operation. I suppose the next thing will be that the Leader of the Opposition would like $10 million to bail out the Labor Party because we know it is in trouble.

Yesterday the Minister for Agriculture and Fisheries made a detailed statement in respect of Letona. The Minister has been involved for some considerable time. It is something that does require a shakeup and we do want to see those jobs retained. We have every hope and faith that the receiver, after he examines the situation, will come up with an answer that protects the investors, which is an obligation of a receiver when payments cannot be made. We are hopeful there will be revitalisation in such a manner that will allow for that co-operative in some form to continue to function and therefore maintain the jobs for the people of Leeton.


Mr MORRIS: I direct my question without notice to the Minister for Consumer Affairs. What action is the Government taking to warn consumers of unfair trade practices? Is the Government assisting companies to establish internal systems to deal with consumer complaints?

Ms MACHIN: I compliment the honourable member for Blue Mountains for his interest in consumer affairs, something which is appreciated by all Blue Mountains constituents, who at subsequent elections will continue to demonstrate their appreciation for his efforts. After all, they are consumers too. The Fahey-Armstrong Government is committed to a fair go for traders and consumers around New South Wales. As part of its commitment the Government is constantly looking for ways to improve the market-place both for consumers and traders. I am happy to inform the House of a new procedure that has proven enormously successful for consumers, traders and the Department of Consumer Affairs. Called the complaint review system, it has been established primarily to warn consumers of emerging unfair trading practices or scams as quickly as possible. By using a sophisticated computer system to examine complaint trends each month, my department is immediately able to ascertain problem areas.

A key component of the new scheme has been the creation of an internal departmental committee responsible for examining the conduct of all traders who have been the subject of 12 or more complaints from consumers over the previous three-month period and traders who have come to the department's notice through other means. The system enables the department to inform the community quickly of problem traders and emerging unfair trading practices should this prove necessary. An example of the system was provided by my predecessor, now the Minister for Industrial Relations and Employment, when she warned consumers early this year about Blue Gum Furniture. Honourable members may know that Blue Gum Furniture was taking orders and deposits for furniture without providing the product. The company has since gone into provisional liquidation, vindicating the warning given, without which even more consumers would have suffered. The other important aspect of the scheme has been the ability to provide timely feedback to traders and manufacturers concerning complaints lodged against them. In most cases early detection of the problem has allowed traders the opportunity to rectify problem areas before enforcement action becomes necessary. My department has been able to inform a number of traders of complaints against them for such things as unfair conduct, poor service and inferior goods.

For example, the owner of a business about which the department had received numerous complaints was initially hostile - not surprisingly - when approached by officers from the department. However, when some of the complaints were explained to him he was absolutely horrified. He had previously known nothing of the problems. As a result of that information he sacked senior management, employed new managers and installed internal complaint resolution and recording systems. This learning of the lack of managerial knowledge dismayed a number of senior executives in private enterprise. Many had not been informed by their subordinates of the types of complaints received from consumers - the types of things that members of Parliament are probably aware of. Considerable benefits have accrued to the community during the first six months of operation of the scheme. Complaints concerning 38 traders have been examined closely, resulting in special meetings being held between departmental officers and traders. To date, nine traders have had meetings with departmental officers. A number of them have high profiles in the retail sector, particularly in such areas as furnishings, electrical goods and used vehicles. The department has emphasised the need for companies to develop and maintain internal complaint resolution and recording systems, and to inform customers that such systems exist.

A consumer who has a complaint about a product that has been purchased can now go to the trader who has systems in place, as a result of the work of my department, to deal properly with the complaint. This process avoids the problem escalating to the point where the Department of Consumer Affairs needs to mediate on behalf of a consumer. For example, consumers who have faulty products that have not been rectified, or who have not had delivery of an ordered product, will be able to contact participating stores and have the matter attended to immediately. Instead of being given the run around they will be directed in the first instance to the complaints section of the store, which should be able to solve the problem fully. The scheme may also become a marketing tool for those traders who are smart enough to realise that, if they offer a quick and
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efficient resolution of complaints, consumers will welcome it. Traders interviewed have generally been supportive of my department's action as they realise the benefits that will flow from positive community perception of their trading activities.

However, the conduct of a further eight traders who are being examined is not so easily resolved and requires further investigation because of possible breaches of legislation. Under this new system consumers will be warned of problem traders earlier than previously was possible. My department will continue to monitor the effectiveness of the complaints review scheme. The Government hopes that the level of consumer complaints to the department will fall as a result of improved complaints procedures. Despite that hope, the Government and the Department of Consumer Affairs will still stand behind consumers who have problems with traders and will be there to provide the usual strong back-up that has been provided. As I said at the outset, my department and the Government are committed to a fair go for consumers and to getting a fair trading environment. I know that the honourable member for Blue Mountains is also interested in this issue, which is obvious from his question.


Ms MOORE: My question is to the Premier and Minister for Economic Development. Following the Premier's negotiations with Reverend the Hon. F. J. Nile about the Government's anti-discrimination bill, will the Premier inform the House what specific concessions have been made to the honourable member? How will gay men and lesbians be protected from vilification in the proposed legislation?

Mr FAHEY: I thank the honourable member for Bligh for the question and acknowledge upfront her genuine concern, for a considerable time, about this issue. As was reported widely in the press, late yesterday I had a discussion with Reverend the Hon. F. J. Nile and with the Hon. Elaine Nile on the question of the Government's homosexual vilification bill. This bill was issued during the winter recess as an exposure draft bill. I emphasise that the exposure draft process, which the Government seeks to use on all matters that require community consultation, allows for input of expressions of concern. The alternative is to not release documents for community consultation.

Considerable input has been received from all sections of the community, from all sections of the Parliament, from church groups and from community groups. Views have also been expressed publicly by Reverend the Hon. F. J. Nile. In the course of the discussions yesterday a number of options were considered. Those options cover many of the concerns expressed by various sections of the community. As a result of the views expressed by Reverend the Hon. F. J. Nile it was indicated to him that those matters would be taken to Cabinet and, in due course, to the party room for the views of Government members to be expressed. When the party room expresses those views, a position will be announced by the Attorney General.

Mr ANDERSON: I address my question to the Premier and Minister for Economic Development. Was the Premier advised of steps taken by the Treasurer which resulted in the costs of his personal defamation action being paid for by the Department of Health? Will the Premier fully investigate the recent settlement by the Treasurer?

Mr FAHEY: The answer to the first question is no. The answer to the second question is that the relevant Minister has said that he will find out and inform the House.


Mr RIXON: My question without notice is directed to the Minister for Sport, Recreation and Racing. What initiative is the Government taking to address the relatively low participation rate of women in sport in New South Wales? Is the Minister seeking advice from peak sporting administrators on this issue?

Mr DOWNY: I thank the honourable member for Lismore for his question. It is pleasing that he has chosen to continue working with the ministerial advisory committee on sport, recreation and racing. He is a very good member. One area on which the Government must focus attention in the sport, recreation and racing portfolio is the profile and participation rate of women in sport. Recently my department completed a policy document about women in sport. That document was compiled in consultation with peak sporting bodies in New South Wales. It covers a wide range of issues, from the need to increase the number of women in sport management to the availability of child care at sports competitions. However, as we all know, a policy document should not be seen as a cure-all; it must be flexible. For policy to be effective it must be based on advice from as many interest groups as possible.

Recently I expanded my access to advice on women in sport by establishing a ministerial advisory council on women in sport. Advertisements for nominations to that council have been placed in newspapers, and nominations close on 17th September. There has been widespread interest from sportswomen, administrators, officials, journalists and academics, covering a wide range of ages. The council will advise me directly on a number of areas related to the profile and participation of women in sport. I say profile and participation because I believe that all too often the debate about women in sport has focused only on the lack of media coverage of élite sportswomen and not on the pressing issue of general participation in a wide range of sporting and recreational activities.

Of course, the media profile of sportswomen is important as it provides recognition of the achievements of female athletes as well as role models for girls who aspire to élite status. It is worth noting that in 1992 women's sport occupied a little more than
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4 per cent of total sports coverage in the print media and a little more than 1 per cent of total sports time in the electronic media. I ask: Is it fair that for every 25 footballers in the news only one netballer receives media coverage? The imbalance in media coverage is particularly obvious when we realise that our female athletes have won more than their fair share of prizes at the international level. Since 1948 women have won 39 per cent of Australia's gold medals at Olympic Games, while comprising only 21 per cent of our national teams, and despite having less than a quarter of the total number of events available to them.

At the 1990 Commonwealth Games in Auckland women comprised 38 per cent of the Australian team, yet brought home 42 per cent of the medals. The recent international achievements of our female athletes in netball, basketball and hockey, as well as the individual feats of athletes such as Susie Moroney and Shelley Taylor-Smith, reinforce the importance women have in shaping the way the world views our sporting prowess. As I have said, the profile of sportswomen in the media is very important, and I will ensure that media and sports marketing interests are represented on the council. However, an improvement in the profile of women in sport management and the general participation rates of women in sport is also vital if the Government wishes to ensure equity. Among registered sports participants in Australia, women are outnumbered by men by more than three to one.

In administration, women comprise only 10 per cent of national sporting organisation presidents, only 18 per cent of executive directors, and only 22 per cent of coaching directors. One theory states that women are not attracted to traditional competitive sports. And figures from cycling seem to bear this out: women comprise 7 per cent of members of the Australian Cycling Federation Inc., yet they make up 34 per cent of members of the Bicycle Institute of New South Wales Inc., which is more concerned with recreational cycling. This is an area on which I will be seeking advice from the representatives on the advisory council. It may be that as the number of women in sports management is increased, the atmosphere of competition may change to become more attractive to women participants. Within the next few weeks I will be announcing the composition of the Women's Advisory Council, and by the end of the year that council will be in full operation.


Mr BECK: My question without notice is directed to the Minister for Small Business and Minister for Regional Development. What action is the Government taking to assist business growth in the far North Coast region of New South Wales? In particular, is the Government focusing on cross-border issues?

Mr CHAPPELL: I thank the honourable member for Murwillumbah for his question on what is a very important topic, a topic that he has vigorously presented to this Parliament on many occasions over recent years, as we all know. Development, jobs and growth in his part of the State are critically important, and associated cross-border problems are something that the honourable member brings constantly to our attention. The North Coast area and its unique needs have been a matter of concern for the Government and businesses for many years. A misconception, fostered by the Opposition, is that New South Wales is losing business to Queensland.

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

Mr CHAPPELL: In fact, when New South Wales has advocates of the quality of the Leader of the Opposition and his financial spokesman in another place trying to talk down the economy of New South Wales, one can well understand that some people would come to believe that New South Wales is losing out to Queensland. However, that is not the fact. There is no real evidence that business from New South Wales is moving to Queensland.

Mr SPEAKER: Order! I call the honourable member for Smithfield to order. I call the honourable member for Campbelltown to order.

Mr CHAPPELL: Even in areas closest to Queensland's main growth area, the Gold Coast, new firms are not packing up and moving from New South Wales to Queensland. In fact, just last week in Ballina it was my pleasure to announce the relocation of another small Queensland firm from that State to New South Wales - the establishment of Border Smash Repairs Pty Limited in the South Tweed of New South Wales - bringing another 10 vitally important jobs to New South Wales. In June in Wagga Wagga I announced the expansion of Southern Country Foods, a major food processing plant, which is transferring to Wagga Wagga from Rockhampton in country Queensland. Two days ago I was speaking with a businessman who had recently relocated from Queensland to the Central Coast of New South Wales.

By no means is this a one-way street. Concern has been expressed about the infrastructure cost differentials between the two States. My Department of Business and Regional Development is looking into this problem with a view to negotiating a better deal for regional businesses from, for example, local electricity suppliers. Queensland's business incentives in many respects are not as generous as those provided by New South Wales; certainly they are not as carefully targeted. For example, Queensland has no real equivalent to the regional business development scheme, which operates in New South Wales and can subsidise the costs of a country firm going through expansion or of a metropolitan business wanting to relocate to a country area.

These schemes, which have been operating for quite some time in New South Wales, and the healthy and more diversified economy of New South Wales make the difference. However, the cross-border infrastructure and regulations have created some
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difficulties for our local business people. Recently the Premier announced that New South Wales had secured from Queensland an extension of the responsibility of the joint working group on cross-border issues. The working group comprises members of the New South Wales and Queensland governments, as well as planning and regional development agencies. It encourages communication and co-operation between all State agencies in both States and it will also look to the supply of human services by both governments, and services such as housing assistance under the State scheme, which could be given to residents on either side of the border.

The joint working group also keeps a register of the anomalies in the border region, including impediments to business and any problems that stop the wider community from operating as a cohesive entity - anomalies which, for example, allow New South Wales registered bus operators to drop off passengers in Queensland but do not allow them to pick up passengers before they turn around and come back to New South Wales. To ensure that our local business people in this unique area get the best chance to thrive and survive, I am pleased to be able to announce today the appointment of a project officer to be employed by the Government to specifically review opportunities and constraints affecting far North Coast development.

Mr SPEAKER: Order! There is far too much audible conversation in the Chamber. I call the honourable member for Londonderry to order for the third time. I call the honourable member for Canterbury to order for the second time. Honourable members who wish to converse should do so outside the Chamber.

Mr CHAPPELL: This officer will consult with key regional organisations and report to the State management team on priority issues for the far North Coast area.

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

Mr CHAPPELL: This important initiative will enable the Government to tackle cross-border issues peculiar to the far North Coast region of New South Wales and the southeast region of Queensland.

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

Mr CHAPPELL: Another cross-border initiative of the Government, which the Northern Rivers Regional Development Board and my department are involved in, is the formulation of a tourism industry business and marketing plan of the Tweed and Coolangatta Tourism Incorporated Association.

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

Mr CHAPPELL: This study is being jointly funded through the Federal Department of Employment, Education and Training and my department.

Mr SPEAKER: Order! I call the honourable member for Hurstville to order for the third time.

Mr CHAPPELL: The development of this tourism plan will provide a blueprint for the future direction and activities of the association, and is a clear demonstration of projects that can be jointly undertaken by the local community, and State and Federal governments to facilitate development in regional New South Wales. The Department of Business and Regional Development in New South Wales continues to closely monitor cross-border issues that affect businesses and the economic development of the far North Coast region. It flows from the Government's commitment to improving regional economies across the State. Only last week I met with the mayor of Tweed Shire Council to discuss some of these issues. I will return to the Tweed in the next few days to talk further to business leaders as we grapple with this problem, and as we work with the honourable member for Murwillumbah to ensure that we get on top of these issues, and continue to build business, growth and employment in New South Wales.

Petition praying that the House not pass those sections of the Anti-Discrimination (Amendment) Bill that make unlawful vilification on the ground of homosexuality, received from Mr Longley.

Petition praying that the area assistance scheme be maintained, received from Mr Irwin.

Petition praying that the House will consider the installation of emergency telephones on the F6 Freeway from Yallah to the north of Wollongong, received from Mr Rumble.

Petition praying that the House introduce legislation to regulate disabled parking at shopping centre parking areas, received from Mr Price.

Petition praying that the underpass connecting Macquarie Road to Ferguson Avenue, Springwood, be widened to provide safer passage for both traffic and pedestrians, received from Mr Morris.

Petition praying that Bingara Shire Council upgrade the level of construction and maintenance of Main Road 133, received from Mr W. T. J. Murray.

Petition praying that the Government make available funds in the 1993-94 Budget to repair, restructure and upgrade Main Road 504, received from Mr Hartcher.

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Petitions praying that the House amend the Crimes Act to reintroduce capital punishment as an optional penalty for the offence of murder, received from Mr Neilly and Mr Windsor.

Petition praying that clause 58 of the Residential Tenancies Act be withdrawn and replaced with a new clause providing for just cause eviction, received from Mr Souris.

Petition praying that the House oppose the proposed development by Canterbury Municipal Council of the Civic Centre site, received from Mr Moss.

Petition praying that Drummoyne Boys High School be reopened as a co-education high school, received from Mr J. H. Murray.

Petition praying that the children's ward of Shellharbour Public Hospital be reopened, received from Mr Rumble.

Petition praying that the Government establish a public physiotherapy unit in the Raymond Terrace area, received from Mr Martin.

Petitions praying that the Government act to combat hepatitis C, received from Mr W. T. J. Murray, Mr Turner and Mr West.

Petition praying that because of dissatisfaction with the rationalisation of health services the House prevent the downgrading and possible closure of services at Lidcombe Hospital, received from Mr Nagle.

Petition praying that the Government increase funding and services for dementia patients in Broken Hill and the Far West, received from Mr Beckroge.

Petition praying that the House act immediately to stop the closure of Lidcombe Hospital, received from Mr Nagle.

Petition praying that the House will not pass the Industrial Relations (Amendment) Bill nor any other legislation that seeks to prevent the payment of penalty rates for nurses, received from Mr E. T. Page.

Petition praying that Berkeley Police Station be manned on a 24-hour basis and foot patrols be introduced, received from Mr Rumble.

Petition praying that the House support an increase in the number of police in the Cabramatta police patrol and specialised initiatives to combat the growing incidence of street violence and heroin distribution, received from Mr Newman.

Petition praying that the Lambton Police Station be retained, received from Mr Mills.

Petition praying that a beat police unit be stationed at Toukley, received from Mr Crittenden.

Petition praying that the House assess the proposal by Stockrington Rail Waste to dump rubbish in the Stockrington, Minmi, Seahampton, Butti area, received from Mr Price.

Petition praying that the Bourke Office for Juvenile Justice attached to the Department of Family and Community Services not be relocated to Trangie, received from Mr Beckroge.

Petition praying that the House order the establishment of a commission of inquiry under the environmental protection Act to consider the environmental and fiscal effects of the Multi Arts Centre proposed for Caroline Bay, East Gosford, order a half-term election for the ten aldermen of Gosford City Council on 18th September, 1993, and order the council to cease expenditure on the centre until the results of the election become known, received from Mr McBride.

Petition praying that the House call for the establishment of a Jervis Bay Marine Reserve and National Park protecting the waters and total catchment area of Jervis Bay, received from Mr Hatton.

Petitions praying that the Government reverse its decision to sell the Government Cleaning Service to private contractors, received from Mr Armstrong, Mr Beckroge, Mr Bowman, Mr Martin, Mr Mills, Mr Neilly, Mr Rumble and Mr Whelan.

Petitions praying that the House support funding for a multicultural arts centre in New South Wales, received from Mrs Chikarovski and Ms Nori.

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Motion by Mr West agreed to:

That so much of the standing and sessional orders be suspended as would preclude these bills, notice of which was given this day for tomorrow, being brought in and proceeded with up to and including the Minister's second reading speech, provided that any business before the House be interrupted at 4.15 p.m. for the introduction of the Appropriation Bill and cognate bills.

Suspension of certain standing and sessional orders agreed to on motions by Mr Whelan.

Bill introduced and read a first time.

Mr E. T. PAGE (Coogee) [3.41]: I move:

That this bill be now read a second time.

I introduce this bill in view of the intention of the Government to privatise the Government Cleaning Service. The first government cleaners award was struck in 1910-1911, so we are looking at a form of employment under government control going back 80 years. At that time school principals employed cleaners directly from local communities. This idea of local employment is a big factor in the current service. A majority of the 7,500 cleaners presently employed in the service live in the areas in which they work - an important factor for the service. The first agreement on space allocations to be cleaned was arrived at in 1912. During World War I the then Government formally endorsed a welfare model for the cleaning services in recognition of a large number of war widows. Currently, 6,000 of the 7,500 people employed in the service are women, so the tradition of targeting employment to particular groups in the community is still valid.

In 1955 Ray Gietzelt was secretary of the Miscellaneous Workers Union. I know him quite well and regard him as a friend. In 1966, after a 10-year campaign, he organised a set of established practices for the cleaning service. It is interesting to note that the advocate for the union in the 1966 agreement was none other than Mr Neville Wran, who as Premier was very supportive of the Government Cleaning Service. On a number of occasions I heard him support the principles and employment practices of that service. At the moment that gentleman happens to have a small commercial involvement in a cleaning company. The company, rather than any one member involved with the organisation, is interested in the service. Unfortunately, the Government has misled people in the Government Cleaning Service. They were promised that their jobs were safe and that there would be no selling off of the service. A press release issued by the Chief Secretary on 11th March, 1992, states:

Administrative Services Minister Anne Cohen said today that the decision should put to rest any fears that school cleaners could lose their jobs through the contracting out of cleaning.

"The Premier has advised me of his approval of the arrangements tying current clients to the Government Cleaning Service to be extended for two years until 1st July from 1st July, 1992," Mrs Cohen said.

That takes it up to 1st July, 1994. She continues:

"The cleaners should be congratulated for their performance. I hope today's news puts to rest any fears they may have had for their job safety."

Of course, that was a lie by the Minister. She was not the only one who lied. On 23rd March, 1992, the then Minister for Industrial Relations and Minister for Further Education, Training and Employment wrote to a constituent in Goulburn in the following terms:

The Government recognises there have been substantial improvements to the efficiency of the cleaning service since 1989. I would like to take this opportunity to congratulate you on your contribution.

The letter continues:

This will ensure job security for the future.

Again, another lie by the person who is now the Premier - the one who said 12 months ago that there would be no public service sackings for the next 12-month period. Of course, in that time he has broken his word again. The Chief Secretary wrote in similar terms to people in her electorate. Since 1987 the service has been under a regime of restructure and efficiency promotion, resulting in a saving each year of a substantial amount of $72 million. This was why the Chief Secretary and the then Minister for Industrial Relations congratulated the cleaners and told them that because they had done the right thing their jobs were safe.

No group in the public service has co-operated with its union and the Government in completing efficiency reviews as this group has done. It has acted in all honesty; it has put some jobs on the line to deliver efficiency requirements to the Government; it has met those targets and been congratulated by the Government; and now it has been told that some people within the group will lose their jobs because of it. The service is currently making a profit of about $13 million a year, which goes some way towards underscoring a misstatement by the Minister - that the service is inefficient. The other thing that underscores that misstatement is the fact that the service has been competing against outside contractors and winning jobs.

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The Minister has said in a document that the service has been losing 80 per cent of its tenders. That means it has been winning 20 per cent of its tenders. That is the industry norm; that is what private contractors get when they put in for tenders. So it cannot be said that the Government Cleaning Service is inefficient when it can compete quite successfully with the private sector. The Minister has issued a series of documents which contain various claims which, once analysed, have turned out to be completely false. The Minister has always said that there would be regular consultation with the relevant union, which has very effectively represented workers in this area. That is not true. A consultative committee comprising representatives from the Government, the union and the department was set up well before the Minister announced the privatisation of the organisation, but that committee virtually never met.

The Minister said there will be no community benefit from the Government's involvement in cleaning. I suppose that depends on what one means by community benefit and whether one believes in social values. The make-up of the organisation is such that there is significant advantage in the way the service operates at present. Of the 7,500 people employed in the service about 6,000 are women. They tend to be middle-aged and older women, the majority of whom come from non-English speaking backgrounds; usually they live local to the places where they work. By and large they will not be able to obtain other employment.

The Minister tried to suggest that there will be security of tenure. The only security of tenure will be that the contractor will have to undertake to employ these public servants for 12 months and after that they can be dismissed without redundancy pay. The contractor has no commitment to keep a current member of the cleaning staff employed beyond that 12-month period. The agreement says nothing about staff having to be retained in their current jobs. A woman who lives at Liverpool and has a couple of kids at school could find herself rescheduled to work at Cronulla.

Mrs Cohen: That is not so.

Mr E. T. PAGE: The Minister interjects to say that is not so. She should consider the facts. The Opposition is concerned about the employment of these people and will monitor what happens to them after the 12-month period. What will the Minister do? The agreement says that these employees need to be kept on only for 12 months. What will happen in two years when the contractor says that he has dismissed a person in accordance with the agreement under the contract? The Minister will not be able to do anything, because nothing in her document indicates that these employees will have any recourse against the Government. The Minister has made no reference to any recourse when a person is dismissed within that 12 months.

If the Minister had a case, she would say that when there was a sacking after six months certain financial action would be taken against the contractor or that the contract would be terminated or the contractor compelled to re-employ the person. Nothing like that has been said. All the Minister has said - and it does not mean a thing - is that the Government is concerned about the employment of these people. If the Government is concerned about their employment, it should make its contract for five years and make the contract for employment of the individuals for five years instead of one year.

Another problem with transferring to the private sector is that private industry is a volatile field of employment. In 1992 the resignation rate from the Government Cleaning Service was 19 per cent, made up largely of retirements. The corresponding resignation rate among contractors in the private sector was 65 per cent. That demonstrates the fly-by-night nature of private contractors. It is in their interests not to employ middle-aged or older women. They seek to employ young, agile male and female workers, perhaps university students or others seeking part-time jobs in order to earn an income over a short specified period and then move into other employment.

Private contractors have no incentive to maintain a stable work force; it suits them to have a mobile group of employees. What will happen to these employees? They will be put off in the middle of December - a nice little Christmas present for 7,500 people, whose public service jobs will go. They will have to look for new employment prospects, possibly after only 12 months. What will happen in regard to their superannuation, sick leave pay and long service leave? If the Minister were interested in maintaining their employment and making sure they had jobs into the future, she would see to it that those benefits were transferred to the contractor. Will that happen? Of course, it will not. Those benefits will cease on 13th December, when they will be paid up. Then it will be a matter for the local contractor to enter into a new arrangement with the employees.

The Minister's document, which accompanied correspondence to the cleaners on 16th July, raised a number of these issues. One question asked was, "Will I lose my job after 12 months?" The Minister's response, as I said before, was "The Government will monitor the treatment of employees during the entire term of the contract - not just for the first 12 months". The Minister will monitor but do nothing else. Monitoring does not mean a thing. Another question asked related to superannuation: "Can I continue paying my current State Super scheme after the sale?" The Minister said, "No. In accordance with the legislation, your current scheme arrangement will cease when your employment with the GCS ceases". That is optimistic! The Minister says, "You will have a job into the future and will be all right; don't worry, Mabel - but your superannuation stops". That does not give an employee much encouragement.

Mrs Cohen: It could be levied by the private sector.

Mr E. T. PAGE: The Minister says it could be levied, but she is interfering with the benefits of people who have contributed to a superannuation
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scheme for 20 years or 30 years. They will suddenly find that all their benefits cease on 13th December, just before Christmas. One wonders about the veracity and credibility of the Government in all of this. The person who ran the Government Cleaning Service, a Mr Mansell, was an executive member of the Australian Building Services Association. He was a member of that association's industrial subcommittee, one of the stated aims of which is to privatise the Government Cleaning Service.

The person running the Government Cleaning Service was a public servant and an integral part of the group whose aim is to privatise that service. When that became apparent and was publicised, he resigned within days. If that is not an admission of guilt, I do not know what is. The Minister proposes to divide the State into five areas. Companies will be able to tender for contracts in those five areas. In a press release of 13th August the Minister boasted that nine major companies had completed the first qualification round. The Government claims to believe in small business, yet this arrangement has been designed so that no small business can successfully tender. Only major companies will be able to tender.

Mr Kinross: What about efficiency?

Mr E. T. PAGE: The member opposite mumbled something about efficiency. What is wrong with the efficiency of small business? Do members opposite suggest that small business is not efficient, that small business could not run a cleaning organisation? The Government will give its mates the job because the Liberal Party has ties with the major cleaning contractors.

Mr Kinross: What about Neville Wran?

Mr E. T. PAGE: The honourable member should ask him what contacts he has. I am talking about Liberal Party contacts. The Government has cut small business out of these arrangements and made sure that only its mates will be able to tender. Small businesses will be completely excluded. Another claim made by the Chief Secretary and Minister for Administrative Services is that the Government will save $37 million. The initial claim was that $37 million would be saved in the first year, but no figures were put forward to substantiate the claim. When the Minister realised that her claim was hard to cop, she said that in three to five years there would be a saving of $37 million. Still no figures were provided. This is just pie in the sky.

What did former members of the Liberal Party have to say about this matter? In February 1988 Nick Greiner, the then Leader of the Opposition, said - as this was approaching an election one may well expect him not to tell the truth, or at any time, but it is worth while quoting him because at least he could remember - "No cleaning or ancillary jobs in government schools are under any threat. We guarantee that anyone who wishes to remain employed in our schools will continue to do so under a Liberal-National Party Government". That was a broken promise. The Minister for Administrative Services said, "The cleaners should be congratulated for their performance". It is saving the Government $72 million a year. She said, "I hope today's news puts to rest any fears they may have had for their job safety".

Honourable members in this House put up dorothy dixer questions to try to make policy type statements. On 11th March the then Minister for Ethnic Affairs, Mr George Souris - now Deputy Leader of the National Party - said, "Unemployment has taken its toll within the ethnic communities of NSW. I am very concerned about the desperate situation in which many job seekers of non-English speaking background find themselves". On 13th May this year the Minister for Community Services, Jim Longley, was concerned about mature age unemployment. He said, "This Government has led the nation in reducing mature age unemployment". On 25th August Michael Photios, Minister for Multicultural and Ethnic Affairs, in a media release said, "A task force will be set up to address the underemployment of migrants in the Public Service . . . ".

The Government Cleaning Service is a section of the public service which targets the ethnic community, mature age workers and women who live locally, yet the service is to be contracted to the private sector, with no guarantee of employment for workers beyond 12 months. Those workers without doubt will lose their jobs. If honourable members opposite were to visit schools they would gain some knowledge of the make-up of the work force of the Government Cleaning Service. Very often those employees live locally and have children attending the school. They are involved in parents and citizens associations, work on fetes, open the school of a morning and close it of an evening, do extra cleaning, help on projects and are part of a community organisation. No contractor will do that. I suggest that the majority of cleaners perform those functions because they have an identification with the school.

Mrs Cohen: They will be the same people.

Mr E. T. PAGE: The Minister says that they will be the same people. If she believes that, she should provide five-year contracts for the contractor and cleaners also should be employed for five years, with the situation to be assessed. This initiative will be one step towards providing community involvement that otherwise would be lost. The only way that savings of $10 million, $37 million or whatever can be achieved is through a cut in hours, and that will mean a loss of jobs for people. That will result in schools and other government facilities not being as clean as they are now.

In 1992 the Victorian school cleaning service was privatised. I have heard the current Premier eulogise about what was done by his counterpart Kennett in Victoria where part-time hourly rates have fallen from $13.55 to between $8 and $11.40 an hour. The wages of former full-time cleaners dropped from $22,000 per annum to $6,840 per annum, with many
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being stood down without pay during term breaks. Sick leave, long service leave and superannuation also were slashed. The Government is not going to slash those conditions. It is just going to stop them, full stop! That is a brick wall. Since privatisation many Victorian schools have had to roster parents and children to clean the schools. Apparently, cleaning the schoolyard of rubbish is regarded by some schools as involving children in environmental exercises. Something similar will inevitably happen in New South Wales schools.

This issue is about people, not principles, so it is worth while referring to particular cases. Mrs Robyn Johnson is a single mother who works at Hurlstone Park Agricultural School. She thought she had secure employment, as did the other 7,500 cleaners. If she is forced out of the public service her expected superannuation of $220,000 in 14 years will be worth $33,080 - and this is a person who has given faithful service. Carol Rowe of Mackellar Girls High School won a Department of School Education award for her commitment to work. She provides non-paid extras to the school because she has a community interest in the school. She has made curtains for the office and 200 costumes for students performing at a rock eisteddfod, yet she now finds herself without job security. The work she has put in as a concerned worker and community-minded citizen has gone down the drain.

Miriam Carrasco works as a cleaner at Ashfield Primary School and dishes out free breakfasts for children who have not been given breakfast at home. That service is run by the Reverend Bill Crews of the Ashfield Uniting Church. Name a contractor that does that! Out of the nine contractors who have tendered for the work, name one who provides breakfasts for children in his or her own time! Finally, Lesley Haskell of Stanmore expected to receive $80,000 in superannuation on retirement in March 1994 - not a long way off - but her projected payout will now be $38,000. In just over 12 months she will lose her job, and because the superannuation scheme has been cut off she will lose $42,000.

Veronica Jones cleans at Terrigal Public High School. She umpires the netball team, turns on the security system when she leaves and looks after children whose parents are late in collecting them from school. She will be out on her ear. Can honourable members opposite name a contractor who will look after someone else's children? Cleaners employed by contractors will not do that; they will not have an interest in the school per se, but will be working for X hours to earn a certain amount of money and will then go home. The Government brought contractors into the hospital system but in some cases has had to re-employ staff because of the unsatisfactory level of cleaning. Three years ago 20 cleaners at the Ryde Rehabilitation Hospital were given assurances that when the incoming contractor, United Health Services, took over from the Department of Health their jobs would be safe. Minister, one of your confrères said what you are saying now, that jobs would be safe. In July this year a decision was made about the hospital contractors and all the guarantees went out the window.

The new contractor - Medical Maintenance Services - refused to guarantee jobs for cleaners or to recognise entitlements such as long service leave. That is what happens when the Government brings in contractors. But the Government is smarter than that. It will not worry about the contractor stopping superannuation payments because the Government will stop them. What did the Government do with the Technical Repair Service? It offered those employees voluntary redundancy. It paid them off. The cleaners are not being given any opportunity. Not one cleaner has been offered the opportunity to accept voluntary redundancy. The people in the Technical Repair Service were paid off - they were given confidential information about their superannuation benefits. The Government told them that professional financial planners would be visiting the TRS to provide information on the management of payments. There was an employment assistance service.

I do not know why people in the Technical Repair Service apparently hold privileged positions and cleaners are not given any offers. Cleaners are guaranteed that they will lose their jobs in 12 months' time. If the Minister is trying to tell us that she is concerned about the employment prospects of the cleaners, she should give the cleaners job security for five years. Do not stop their superannuation payments, do not pay out their long service leave or sick leave entitlements, but transfer them to the contractors who win the tender so that they have a five-year period of tenure. The Minister should do something to indicate that she wants to guarantee the cleaners' jobs. All the Minister says is that the cleaners will be all right, but in 12 months' time she will rely on someone over whom there will be no control.

The Minister can say until the cows come home that she will monitor what happens to the jobs in 12 months' time but there is nothing she can do about it. Once the contract is signed the employment is completely outside the jurisdiction of the Government. It will be interesting to hear what the Minister is prepared to offer these people. Nothing has been given to them and no public statement has been made to indicate that any joy will be offered. The cleaners are merely being told that on 13th December they will no longer be public servants. The Government tells them that at the moment an unknown contractor will have bought them body and soul - their jobs and their bodies - and will have to look after them for 12 months. The way these cleaners have been sold off reminds me of the slave auctions.

Some of the people in the Technical Repair Service took the opportunity that was offered to buy out that business. No such offer was made to the cleaners. Technical Repair Service employees received benefits and redundancy and some of them bought the business. No such offers were made to the cleaners. The cleaners have simply been put on the rack and told that in 12 months' time they can whistle for their jobs - no matter what the cost to the community or whether they will earn enough to eat. Because these people come from non-English speaking
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backgrounds, because they are women, or because they are middle aged - no matter what group they represent - they are a target in society and get no recognition whatsoever for service to the community.

The Minister knows as well as I that early payment of superannuation is always disastrous because the schemes are designed to run the full course of a person's employment. If that is not done, if it is cut short in any way, there will be a massive reduction in the amount of money people receive. But that is what the Government is doing to these cleaners: it is stealing money. What the Government is doing is outrageously immoral. The Government has betrayed the people it gave hope to, told them lies and sold them down the river. I certainly hope the Parliament votes with the Opposition to ensure the Government Cleaning Service Retention Bill is passed, preventing the Government's anti-social act from coming to fruition.

Debate adjourned on motion by Mrs Cohen.


Mr SPEAKER: Pursuant to an earlier resolution of the House the debate is interrupted. I advise the House that on this occasion the Budget Speech of the Treasurer will be televised from the Speaker's Gallery.


Bills introduced and read a first time.

Mr COLLINS (Willoughby - Treasurer, and Minister for the Arts) [4.15]: I move:

That these bills be now read a second time.

INTRODUCTION

Mr Speaker

This is a Budget to contain debt, maintain services and give a helping hand to people and families in need.

It is a Budget of common sense and compassion.

Above all, it is a Budget for responsible economic management.

By containing debt, it will free up more resources for essential services.

By containing debt, it will secure the future of our children.

By containing debt and insisting on greater efficiency in the public sector, it will save taxpayers' money.

By containing debt and improving the performance of Government Trading Enterprises, it will keep down taxes and charges.

And thanks to this Government's policies since 1988, this Budget will achieve its goals with none of the financial convulsions and savage cuts in services endured by other States.

Instead, under this Budget, we will offer consumers a better deal. For example, the price of electricity to industrial and commercial users will be reduced by 4 per cent.

Water rates for all but the heaviest domestic users will also reduce.

Before outlining our strategies, I remind Members of the handicaps under which the Budget has been framed.

First, continuing cuts in Commonwealth general purpose payments to New South Wales.

These have been cut in real terms by over $700 million per annum relative to 1987-88 - equivalent to the cost of running one hundred and forty State high schools.

Second, New South Wales continues to subsidise the smaller States and Territories by $1.2 billion a year through fiscal equalisation. That subsidy costs every New South Wales citizen around $200 a year - even after allowing for the recent favourable adjustment following the 1993 Commonwealth Grants Commission report.

Third, the Recession and the downturn in the property market are continuing to hit hard at State tax revenue.

Property-based revenue - real estate duties and land tax - is down $1,127 million in real terms in 1993-94 relative to their peak year values. In 1993-94, land tax will be down $385 million in real terms from its peak in 1991-92.

BUDGET OUTCOMES

In the face of these difficulties and challenges, our record of financial management has been a model for other governments.

Through tight controls on spending and greater public sector efficiency, our Budget targets have been bettered.

The 1992-93 Budget outcome was a deficit of just under $1 billion - more than $200 million better than projected, due to the strong financial management of my predecessor as Treasurer, Premier John Fahey.

This year's Budget will cut the deficit by a further $100 million to $890 million - putting us well within the limits of reasonable and manageable debt. Further reductions will follow.

Outlays in 1993-94 are expected to increase by just 3.1 per cent over last year and well under inflation over the three years to 1995-96.

Page 2872

We are also projecting a strong Capital Program of $5,479 million in 1993-94. While this is down 1.8 per cent on the record of last year, it is a responsible calculation of what the State can realistically afford and yet is still $300 million higher in real terms than in 1988-89.

In making debt control the key to our Budget strategy, we are looking to the welfare of future generations of Australians.

DEBT CONTROL

Mushrooming debt has been the downfall of other State economies; it still plagues the national economy. In New South Wales, managing and controlling debt has been the key to success.

In reducing the deficit by 1995-96 to just over $600 million and further in the years beyond, we will stop adding to our net debt in real terms.

In other words, we will again be living within our means.

But that in itself is not enough. Deficit reduction of this kind simply means that we won't be adding more and more to the State's bankcard every year.

If we want more money for more services and improved capital and infrastructure assets, we have to reduce the overall debt level to pay less each year in interest.

To achieve this, the 1993-94 Budget will continue to bear down on the State's other liabilities. This year we will begin phasing in the full funding of superannuation. In each of the next three years, between $100 million and $150 million will be put aside to increase superannuation reserves. By June 2004 we will have reduced Budget Sector superannuation liabilities by $4 billion in real terms from the level as at June 1993.

THE STATE BANK

On top of the responsible measures I have outlined, we will seize a once-only opportunity to reduce the State's total liabilities on a dramatic scale.

Since 1988, the Government has been committed to the privatisation of the State Bank of New South Wales.

At that time, the Government made a strategic financial decision to prepare the Bank for privatisation.

These preparations have included the corporatisation of the Bank in 1990 so that it would operate as a fully commercial, independent entity in the banking industry. Secondly, from the beginning of 1993 the Reserve Bank has formally assumed responsibility for the prudential supervision of the State Bank. This is the same supervision of our State Bank as for any private sector bank.

The State Bank of New South Wales has $18.7 billion in deposits and borrowings which are guaranteed by the Government on behalf of the people of New South Wales. This represents a guarantee of around $3,000 by every man, woman and child in this State.

The single most significant financial decision that could be made by any government to reduce the financial risks for the people of this State would be to lift this burden from the people of New South Wales and to leave the banking industry including the State Bank, to the private sector.

There are no longer any good reasons for governments to remain in banking and this is recognised by every government in Australia notwithstanding their political colours.

The Government has received a preliminary report on the privatisation of the State Bank from its financial advisers and we are currently discussing this advice with the board of the Bank.

It is the Government's intention to sell the State Bank at the appropriate time for the best price in the best interests of the people of NSW. For anyone to suggest a fire sale is to fly in the face of the facts.

Let me also assure Members that the sale will not be used to prop up the State Budget. As with the GIO, it will be treated as an extraordinary item.

OTHER KEY STRATEGIES

This strategy of debt-reduction goes hand in hand with our other strategies -

•tax restraint
•better value for money
•reform of Government Trading Enterprises
•clearer priorities for Government services.

I will deal with each in turn.

Tax Restraint

First, tax restraint. We are keeping taxes down.

Tax restraint is an uncommon notion in Canberra these days, but still good common sense in these times.

After allowing for normal annual indexation adjustments and some modest but justified increases in user charges, to which I shall return, the Budget will achieve its deficit reduction targets without increasing general taxes.

Value for Money

Our second strategy is better value for money.

In addition to productivity savings already being applied, a further 1 per cent saving will be delivered by most Budget sector agencies, except in the core areas such as school teaching and front line health and community services.

Those priority areas will continue to focus on greater efficiency, but the savings they achieve will be reinvested in new or expanded programs.

Those departments required to deliver an extra 1 per cent saving will do so through reducing unnecessary bureaucracy, not by cutting services at the coalface.

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* Reallocation of untied road funds

Road funding at $1,357 million, constitutes a massive one third (35 per cent) of Budget Sector capital payments. We will fund major projects including improvements of the Pacific Highway at Raymond Terrace, Taree and Chinderah.

Allowing a small proportion of recently untied funds to be allocated to Consolidated Revenue gives the Government the flexibility to use those funds for other priorities.

The $50 million in untied Commonwealth moneys will be allocated to vital public services, including State Rail Authority capital projects, and others which do not enjoy a fixed revenue stream like roads.

* User charges

To increase funding to core priority areas, it is proposed to make slight increases in user charges in three areas where it is fair to expect users to make slightly higher contributions towards running costs.

As announced last week by the Attorney General:

* court fees will be increased moderately and new fees introduced; and,

* an increase of $3 in the car registration levy will be part of a package of measures to help finance a reduction in court backlog for third party motor vehicle cases.

* The Technical and Further Education administrative charge will increase by 5 per cent in 1993-94. The existing exemptions policy will continue to provide a safety net for unemployed people and those in receipt of social security benefits.

* Contracting

Again, to deliver better value for money, we will contract more Government activities to the private sector.

There is clear evidence that such contracting can lead to far better value for money by achieving real savings; improved services; and, better scrutiny of performance.

Already Budget sector agencies have achieved savings of over $100 million on $500 million worth of functions contracted out.

In 1993-94, contracting of Government cleaning services will save around $40 million a year, or 20 per cent within 2 to 3 years.

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

Mr COLLINS: At the same time, all cleaning employees will be guaranteed employment with selected contractors for a minimum of twelve months and will carry over their redundancy entitlements from public sector service.

* Enterprise agreements and employment flexibility

Finally, in its drive for better value for money, the Government is committed to achieving a more flexible, innovative working environment in the public sector.

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

Mr COLLINS: Guidelines have been issued to all Chief Executive Officers on enterprise bargaining. Funding is provided in the Budget for wage increases in the Budget sector of 3 per cent in 1993-94 (an average of 1.5 per cent for this year) and 2 per cent a year in each of 1994-95 and 1995-96.

These increases are conditional on productivity and performance improvements and agencies entering into enterprise agreements with employees.

The State cannot afford any greater wage increase if we are to get the deficit under control.

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

Mr COLLINS: Should the current hearing before the Industrial Relations Commission result in a greater increase, the Government would need to consider a range of options. Measures such as requiring all Budget Sector agencies to absorb the cost, or tax increases and service cuts could not be ruled out.

I have outlined our strategies for debt reduction, tax restraint and better value for money.

Government Trading Enterprises

Our next strategy is further reform of Government Trading Enterprises.

New South Wales Government Trading Enterprises are valued at around $71 billion. On the most conservative of commercial bases, the shareholders, that is, the people of New South Wales, should be receiving at least $5,000 million - around 7 per cent - per year by way of dividends from such a massive investment.

In 1987-88, when they were last in power, these assets were returning less than $129 million per year - a pathetic return, an absolutely pathetic return. Last year, they returned $956 million to the people of this State. Vast improvements have been achieved, but there is much room for improvement.

The choice is simple: create revenue for the State through GTE dividends and tax equivalents; or rely on more taxes and borrowings.

The idea that GTE's should not be providing returns at least as good as the government bond rate is irresponsible. Dividend requirements place a financial discipline on GTE's that ensure they remain efficient and customer-responsive.

* Electricity

In the electricity industry, generating capacity will be separated from the transmission function in order to encourage both increased competition and the creation of a national electricity grid.

Under reforms of electricity pricing, the average price of electricity supplied to the industrial and commercial sectors will be reduced by some 4 per cent in 1993-94.

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This will be achieved at no cost to families. There will be no increase in the average price of electricity for domestic or household consumers in 1993-94, a 3.5 per cent reduction in real terms.

* Water

A major review is being undertaken of the water industry and the Water Board itself - in which the people of New South Wales have over $14 billion invested.

In the past, small businesses and small households have effectively subsidised large residential water users.

Our reforms will reduce water and sewerage bills for most small businesses and for household customers using average, or less than average, water.

* Other Initiatives

We are undertaking a major new initiative to assess the feasibility of developing alternative timber resources for the State's future.

The Government will make a $1 million grant to the Forestry Commission to enable it to assess the viability of additional eucalyptus plantations, including trial plantations and sharefarming schemes.

We will continue to deregulate fish marketing and the Government will withdraw from direct ownership of the Sydney Fish Markets.

Priorities for Services

Our fifth and final strategy is to achieve clear priorities for the provision of services.

We must set the right priorities for expenditure, targeting those areas of the greatest community need.

This Budget sets out its objectives and purposes more clearly and comprehensively than any Budget before it.

To highlight the essentials of our expenditure programs, and the constraints under which the Government is working, I propose to outline our priorities in household terms.

The State's Budget current and capital payments - the funds at our disposal to spend on services - will amount to $3,500 for every man, woman and child in this State in 1993-94.

I want to give members an account of how that $3,500 will be spent.

* Health

Our first priority is health.

Of the $3,500 per person we have to spend, $823 or 23.5 per cent will go on health services and capital projects.

In 1993-94, over $900 million will be spent on health in Greater Western Sydney, an increase of $219 million since this Government came to office.

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

Mr COLLINS: The North Coast will receive $230 million, an increase of $83 million over the same period.

Over $280 million in savings have been generated since 1988 by an internal efficiency drive, allowing reallocation of resources to these key growth areas in the New South Wales health system.

The establishment of District Health Services will release up to $30 million for the upgrading of facilities and equipment in country hospitals over the next two years.

The substantial rebuilding of the State's health system, which I oversaw as Health Minister for our first three years, will continue in 1993-94 with major works at St George, Liverpool, Nepean and Albury hospitals and the relocation of the Royal Alexandra Hospital for Children to Westmead.

The Prince of Wales Children's Hospital and Stage I of the redevelopment of Maitland Hospital, the Concord integration strategy, the new Inner West Hospital at Croydon, the Byron Bay Hospital and Walgett Hospital will also commence.

In a fundamental commitment to women's health services, funds have also been allocated to commence relocating the Royal Hospital for Women to its new site at Randwick where it will provide the nation's most advanced specialist services for women.

Admissions to public hospitals have risen by over 3 per cent a year on average since 1987-88. In that time total spending on health services has increased by 17 per cent in real terms. More importantly better value for money is being delivered:

•Average waiting times for non-urgent cases are now down to 27 days - exactly in line with the average waiting time for Australia as a whole. No State has a better average except the Northern Territory.

•Average length of stay in hospital has been reduced by 2.3 days since 1988-89.

In 1993-94 total expenditure on health services will be around $5 billion.

* Education

I now turn to education.

Our New South Wales resident with $3,500 all up to spend, will invest $815 or 23.3 per cent in education services in 1993-94.

The department's core primary and secondary education programs will benefit three-quarters of a million students in Government schools; involve over 43,700 teaching staff; and 8,434 ancillary staff. Core current programs expenditure will be $2.3 billion, that is, $89 million above the 1992-93 levels.

A total of $214.4 million has been provided by the Government for primary and secondary school capital works. This will include 14 new or replacement schools; 26 other new works such as refurbishment and furnishings; and 75 projects commenced in previous periods.

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A further $148.5 million will be expended on TAFE; special programs; and support for public sector schools.

Expenditure on education, despite the pressures of the Recession and reduced income, will total $4,895 million on current and capital programs in 1993-94 - an increase of $173 million on 1992-93.

To put this in perspective: the increase in education expenditure in 1993-94 will be nearly twice the rate of inflation; and three times the rate of population increase.

This is an increase in spending in real terms of almost 20 per cent over that of the Labor Government in 1987-88, at the height of the boom.

This Budget will ensure that all students have the opportunity to complete a curriculum of world standard - culturally rich and internationally competitive.

Time does not permit me to cover the many new initiatives being funded - the special focus on Asian languages; implementation of a national curriculum framework; new pathways for post Year 10 education; dual accreditation of vocational and training programs as part of the HSC; reform of the State's vocational training and educational system which alone will receive an extra $1.5 million.

Treasurer Dawkins recently said that New South Wales should cut $1 billion from education and health services. This is the most irresponsible statement ever heard from a Federal politician and would reduce our health standards and the quality of education which we enjoy and which lead Australia.

Health and education remain the highest of priorities of this Government and, more importantly, the citizens of New South Wales.

* Community Services

So far, with just two out of 11 expenditure areas covered, our average New South Wales resident has allocated 46.8 per cent, or $1,638, of the $3,500 available to meet the State's running costs.

He or she will be spending another 5.6 per cent, or $196, on community services - an increase of 6.3 per cent on last year - to support those most in need and to provide family assistance such as child-care protection and care services.

* Care for Families

The Government has a special responsibility to families as well as individuals and disadvantaged communities under stress. The number of low income and unemployed people seeking support from charitable and other community support organisations is considerable.

A further $5 million has been provided in 1993-94 to provide assistance to families and individuals in crisis as a result of the recession and to community organisations towards meeting increased demand for their services.

We are determined to take action to deal with child abuse and child care protection. The Government owes children the highest duty of care at any time, but most especially during economic hardship, when those members of society least able to protect themselves are most at risk.

The Department of Community Services has responsibility for notifications of alleged child abuse and neglect. An additional 6 per cent in annual funding in this area will improve pre-school and day-time child care; reunite children currently away from their families; reduce the likelihood of re-notification by providing support to families; and develop networks to support the departmental intervention with families through respite care and other means.

To improve the service options available to persons who have significant disabilities due to brain injury and to their carers, $1.4 million per annum has been provided to establish accommodation and respite services.

The Supported Accommodation Assistance Program is directed at helping people who are homeless and provides a range of services for young people, mothers and their children escaping domestic violence. An additional $6 million will be provided.

* Law, Order and Public Safety

Our next priority area is Law, Order and Public Safety. The overriding objective in this policy area is to secure and add to our quality of life. Our resident will allocate $305 or 8.7 percent of the $3,500 available towards reducing violence and crime and ensuring people are treated justly.

The Government continues with its successful campaign to improve the efficiency of our court system. One of the initiatives includes the appointment of three acting judges for one year to eliminate the backlog of major criminal matters in the District Court. Once this backlog is addressed, it will be possible to list new cases with definite hearing dates and achieve a major improvement in the management of cases.

At the same time, major efforts are well under way to address the backlog in the civil area.

As foreshadowed last week by the Attorney General, a $3 surcharge to be applied to the motor vehicles registration levy will be used to fund the backlog of third party motor vehicle cases. Court fees for these cases will be abolished and court fees in the civil area moderately increased.

All revenue from both actions will be retained by the courts system. To address the backlog in third party motor vehicle cases, additional acting judges will be appointed.

* Employment and Training

I will now move to employment and training assistance.

In 1992-93, the programs within the Department of Industrial Relations, Employment Training, and Further Education assisted 39,750 people to find jobs,
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or receive training, so that they could more effectively compete for jobs. This level of funding has been increased by 12 per cent to $58.8 million in 1993-94.

A highlight of the State Government's employment strategy has been the success of the "Get Started Program".

By targeting school-leavers, the "Get Started Program" provides direction for young people making the transition from school to work or further training.

In 1992-93, over 3,970 unemployed young people participated in this program, almost 1,270 in excess of the target set earlier.

In 1993-94, the Government will continue this and related programs for young unemployed people. We will provide $5 million to assist those making the transition from school to the labour market.

This Government's Mature Workers' Program, the first of its kind in Australia to target the needs of the mature aged, placed some 4,600 people over the age of 40 in employment or training last year. This program will be further expanded in 1993-94.

The Migrant Employment and Training Scheme will be enhanced to provide a total of $3.4 million towards assisting migrants to obtain employment or other training.

* Housing

The housing capital program will increase by 9.5 per cent to just over $736.9 million in 1993-94, including $511.8 million for public rental leasing. Over 3,100 new units of accommodation will be started.

Consistent with the independent reviews in the housing area, it has been decided to transfer the identified surplus funds of the Building Services Corporation, the Rental Bond Board and the Real Estate Services Council to the housing area. These will be available to meet any costs associated with its HomeFund financial restructure; the determinations of the HomeFund Commissioner; and, to meet Housing needs in general. Enabling legislation will be presented in the current budget session for this purpose.

Our New South Wales resident, after spending on priority areas as well as paying for the unavoidable, such as debt and superannuation, has only about a quarter or $875 from the original $3,500 for all the remaining areas of government.

The 1993-94 Budget also contains a number of other enhancements aimed at improving our quality of life, within our ability to pay.

As we ride out the Recession, this Government is determined to recognise creative, innovative and necessary projects.

No Government can meet the expectations or wishes of every interest group. We have made difficult choices about where to spend the money for the benefit of the greatest number.

The Budget Papers give details of the following additional initiatives and enhancements. The first of these areas is Tourism Development

* Tourism Development

New South Wales is the prime Australian destination for tourists. Funding for tourism has been increased by 55.7 per cent to $33 million, which is a $12 million increase. These funds will attract more domestic and international tourists, generating $74 million in extra revenue.

Key features include: a $13.1 million advertising and marketing strategy, the largest ever undertaken; funding for regional tourism to be doubled to over $2.2 million and a doubling of the Sydney Convention and Visitors Bureau budget to $2.3 million.

Tourism is one of the keys to economic prosperity and increased job opportunities in New South Wales and this is recognised in our Budget.

* Women

The Ministry for the Status and Advancement of Women has been provided with a substantially increased allocation to fund new initiatives.

The Premier and the Minister for the Status of Women will shortly release a comprehensive policy statement encompassing a substantial number of themes. These will include: a safer environment for women and improving and extending the position of women in the work force.

* Ethnic Affairs

New South Wales attracts 40 per cent of people migrating to Australia. Greater effort must be made to fund settlement and related services. An additional $3.5 million will be provided in 1993-94 to the Ethnic Affairs Commission.

* Arts and Cultural Activity

As a friend of mine said recently; "It doesn't help if you get the figures right, but get the heart and soul wrong".

Our average New South Wales resident will spend just $32 of the original $3,500 on the arts and entertainment areas for the entire year.

It is anything but lavish. But just as ordinary citizens set aside something for their leisure and recreation - a visit to the cinema, the hire of a video, a trip to an exhibition - so the Government provides basic support for the arts.

Funds have been provided in this Budget for an Aboriginal cultural centre which will house various arts organisations including the Boomalli Aboriginal Artists' Co-operative and the much praised Bangarra Dance Theatre Australia. $1.5 million is made available for this purpose.

The annual subsidy to local government libraries will be increased by a further $1 million to $16.17 million - a 33 per cent increase in Government funding to public libraries since this Government won office in 1988.

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The Government is also determined that Sydney will remain the film capital of Australia.

Over the next three years around $5 million will be made available for investment in film and television production at a rate of $1 million per year, plus retained earnings from those funds.

The film industry is very important to this State. Not merely because of the financial return, which produces nearly $26 million value-added to our economy for every million invested, but because it helps to define us. A successful film can do more for our image than most advertising campaigns.

Other initiatives include:

* $1 million to the Art Gallery of New South Wales for a new gallery of Aboriginal art.

* Expansion of the General Reference Library within the State Library at a cost of $2.2 million over two years, to cope with increasing demand.

* A major refurbishment of the exhibition spaces at the Australian Museum at a cost of $1.2 million over two years.

* The First Government House Museum, managed by the Historic Houses Trust, on the site of the Nation's first seat of Government, to receive $1.2 million towards exhibition development.

Finally, consistent with the Government's practice of sustaining the arts in difficult economic times, the Budget will provide $10.4 million in 1993-94 to independent arts and cultural organisations. This will enable arts groups to maintain levels of activity and service to the community.

These measures represent a long-term investment in the cultural enrichment of the State, an essential recognition of that creative driving force which inspires and nurtures our community for modest reward.

CONCLUSION

Let me sum up this Budget's strategy.

On the central issue of containing debt there is no choice. Anyone who pretends otherwise is deluding the people of New South Wales.

But we did have a choice on how the question of debt control should be tackled.

We could have taken the short-term view: slashing expenditure and raising taxes to bring income and expenditure more quickly into balance. But such measures would be harsh in these very difficult times. Too many people need assistance, too many businesses need stimulation rather than interference or increasing costs. Too many services need help.

We rejected the harsh, short-term approach.

Instead, we have adopted priorities which will deliver lasting gains while maintaining services. That is why this Budget is one of common sense tempered with compassion.

It is common sense to reduce the deficit and our overall debt to manageable levels. It is common sense to avoid tax increases when we can improve the returns from Government Trading Enterprises.

It is common sense to set clearer priorities for spending on health, education, community services and employment and training.

It is common sense to seek better value for the money we are spending before we borrow more money.

It is common sense to do more in key areas of community and social services where governments alone can improve the quality of people's lives.

In the next 12 months and in the two years beyond, we can make further real and lasting headway towards a strong financial future for this State.

Building on this Budget, and with the support of all responsible members of this Parliament, we can ensure a stable and prosperous future for our citizens and our children.

I commend the bill to the House, together with the following cognate bills: the Business Franchise Licences (Petroleum Products) Amendment Bill, the Motor Vehicles Taxation (Amendment) Bill, and the Road Improvement (Special Funding) Amendment Bill.

Debate adjourned on motion by Mr Whelan.

Mr Speaker laid upon the table a copy of the Budget Estimates 1993-94.

Ordered to be printed.


Copies of Budget Speech, Budget Information, State Capital Projects, Appropriation Bill and cognate bills and Government Financial Statistics Estimates tabled and ordered to be printed.


Bill introduced and read a first time.

Mr CAUSLEY (Clarence - Minister for Agriculture and Fisheries, and Minister for Mines) [4.55]: I move:

That this bill be now read a second time.

This bill provides for the State Government's ratification of a revised rural adjustment scheme, commonly known as RAS, to replace that entered into by the Commonwealth, the States, the Northern Territory and the Australian Capital Territory in 1988. The full terms of the new agreement which the State has entered into with the Commonwealth are incorporated in the bill as schedule 1. All States, the Australian Capital Territory and the Northern Territory are participating in the scheme. The 1988 rural adjustment scheme was the Commonwealth's
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main instrument for providing broad-based structural adjustment and income assistance to farmers in financial difficulty. The scheme was administered by the States under guidelines agreed to by the Commonwealth in accordance with the States and Northern Territory Grants (Rural Adjustment) Act 1988 and agreements with individual States entered into just over four years ago.

The new RAS is being implemented to further a commitment to more effective adjustment measures for farmers. It follows a major functional review by independent consultants and discussions with relevant State Ministers. The new scheme will have a strong focus on structural adjustment and productivity improvement. The provision of financial assistance will be of secondary consequence. Funding arrangements between the Commonwealth and the States are also varied.

The new scheme will be supported by a more efficient administrative structure, including an RAS advisory council, which will provide advice both on the adjustment needs of farmers and on RAS funding to the Commonwealth Minister for Primary Industries and Energy. In normal circumstances farmers will be able to obtain incentives through interest rate subsidies of up to 50 per cent on commercial finance to enhance the productivity and profitability of their businesses. An interest rate subsidy of up to 100 per cent may be approved in the event of the exceptional circumstances provisions of the agreement being activated. Farmers will also be able to obtain grants to improve their skills and to assist with obtaining financial assessment and counselling relating to their farm business.

The new RAS also includes re-establishment grants of up to $45,000 for farmers who find they must leave the sector. The grant is subject to an asset test to farmers following sale of their productive assets. RAS interest subsidies under the new arrangements can be provided to farm enterprises which meet criteria relating to productivity, sustainable long-term profitability and need. Farmers must, first, show how RAS support will contribute to productivity growth of the farm enterprise; second, be able to access commercial finance; third, demonstrate past and future profitability and performance of the farm enterprise; fourth, show the capacity of the farm enterprise to become financially independent of RAS support; fifth, prove that non-farm assets are not in excess of those needed for prudent risk management of the farm enterprise which, in general, are not to exceed one year's total farm operating costs; sixth, contribute a significant proportion of their labour to the farm enterprise; and, seventh, develop comprehensive farm plans as part of a property management planning program.

Farmers in extreme financial hardship who cannot obtain commercial finance for carry-on purposes will be able to receive assistance to meet day-to-day living expenses under a new farm household support scheme - FHS. This scheme is to be administered by the Department of Social Security on an agency basis. On departing the industry a farmer could receive a package of up to $55,000, including $45,000 from the RAS for re-establishment and the balance from the grant provision of the FHS. The package of the RAS and the FHS is designed to address the needs of all farmers. The schemes combine incentives for productivity growth and support to successful farmers with the more compassionate requirements of those experiencing difficult times. Funding for the normal provisions of RAS will be on a 90 to 10 Commonwealth-State basis. Any additional assistance under exceptional circumstances will be shared dollar for dollar between the Commonwealth and the State.

This scheme has been in operation since 1st January, 1993, by agreement between the Commonwealth and the States. The Government sees it as a significant step in providing assistance to farmers in this time of rural downturn. The bill gives legislative support to the scheme. I commend the bill to the House.

Debate adjourned on motion by Mr Martin.


Bill introduced and read a first time.

Ms MACHIN (Port Macquarie - Minister for Consumer Affairs, and Minister Assisting the Minister for Roads) [5.1]: I move:

That this bill be now read a second time.

The purpose of the bill is to amend the Credit Act 1984 to prohibit a credit provider from entering into a regulated credit contract with an annual percentage rate that exceeds the maximum rate. The maximum rate is fixed by the bill at four times the prescribed rate of interest under the Supreme Court Act 1973. On 1st September, 1993, the Supreme Court interest rate was fixed at 10.5 per cent so that the maximum annual percentage rate is 42 per cent at this time. An exception is made for new contracts where the amount financed is not more than $2,000. The bill permits the annual percentage rate to exceed the maximum rate in accordance with a prescribed formula. This allowance is made because of the relatively high proportion of costs which are properly attributable to the establishment of a new relationship with a potential borrower of small short-term loans.

At present the Credit Act empowers the Commercial Tribunal of New South Wales to fix a maximum annual percentage rate. This bill removes that power from the tribunal. The question of whether a maximum annual percentage rate should be fixed has been under consideration by the Government for some time. On 25th October, 1991, the then Minister for Consumer Affairs appointed the Commercial Tribunal to inquire: first, whether or not a maximum annual percentage rate should be fixed in respect of all regulated contracts or a class of regulated contracts, as defined in the Credit Act, and if so, what such a maximum annual percentage rate should be; and second, whether any other measures should be adopted which might reduce the need for consumers to resort to high interest credit contracts.

Page 2879

The tribunal reported to the Minister in April 1992 and the report was tabled in the Legislative Assembly on 8th May, 1992. The major recommendation in the tribunal's report was to amend the Credit Act to set a maximum annual percentage rate of 48 per cent on consumer credit contracts for $20,000 or less. While recognising the arbitrary nature of choosing a rate, the tribunal gave its reasons as, first, the precedent in Victoria where such a rate had applied for many years; and second, the fact that it was high enough to avoid any likely effect in relation to mainstream lenders.

After careful consideration the Government accepted the need for a maximum rate because it is the most effective way of controlling the very small but exploitative high interest segment of the consumer credit market without interfering with the competitive lending of mainstream financiers. However, the Government does not believe that it should be directly involved in determining a rate. Instead, the maximum should be set by reference to a rate that is independently set having regard to rates prevailing in the market-place. The Supreme Court judgment debt interest rate meets those criteria. The rate is reviewed every six months, in February and August, and notified in the Government Gazette.

This Government has no intention of controlling interest rates for the vast majority of those in the finance industry who are competing at rates substantially below the proposed maximum. The Commercial Tribunal inquiry found that high interest lenders account for approximately 0.15 per cent of the personal finance market. They are concentrated in the small loans market - amounts between $200 and $2,000 - with annual percentage rates of over 100 per cent. Mainstream lenders - banks, building societies, credit unions and major finance companies - do not compete in the small loans market. Small loans are considered by these lenders to be unprofitable, because of the high administrative costs involved.

High interest lenders tend to be fairly small family businesses, often operated from the home. Lending practices were found by the inquiry to be inefficient and the cost of credit to be excessive. Nevertheless, the lenders appear to be providing a service for this particular section of the community. The borrowers tend to be on low incomes with a substantial proportion of them receiving social security. The purpose of the loan is most frequently for household expenses such as utility bills, school expenses or car expenses. Transactions frequently take place at the home of the borrower. The borrowers do not appear to have any concept of the meaning of annual percentage rate and many are not aware of its relevance to the credit contract. Its use for comparing costs would be limited in any case, because most borrowers would not be able to attain credit elsewhere.

While acknowledging the need for finance to be available to this sector of the market, the inquiry nevertheless found that high interest lending practices are inefficient and that the majority of lenders are making unduly high levels of profit. The inquiry concluded that competition had not had any effect in reducing rates, partly because lenders tend to operate in discrete areas, and also because the borrowers are not sufficiently aware to compare prices. It is therefore desirable to give some rate protection to this relatively unsophisticated sector of the market, while ensuring that efficient lenders are able to continue to operate to provide a service.

I turn now to the provisions of the bill. Clause 3 amends the Credit Act 1984 by omitting section 170 of the principal Act and inserting a new section 170. The original section 170 enabled the Commercial Tribunal of New South Wales to fix by order in the Gazette maximum annual percentage rates for regulated contracts. The tribunal has never exercised this power and recommended in its report of the inquiry into the question of a maximum annual percentage rate that section 170 be repealed. The tribunal stated in the report that "it has harboured doubts as to the circumstances in which it would be appropriate for a tribunal exercising quasi-judicial powers to undertake a function of enacting delegated legislation". The Government accepted this recommendation.

Subsection (1) of the new section 170 provides that a credit provider must not enter into a regulated contract if the annual percentage rate exceeds the maximum rate in force at the time the contract is entered into. This provision makes it clear that the only relevant maximum rate is the one applicable when the contract is originated. If at the time of its six-monthly review the Supreme Court rate is altered, leading to a change in the maximum rate, there will be no retrospective effect on existing contracts. The maximum penalty for entering into a contract in breach of this provision is 25 penalty units, or $2,500.

Subsection (2) provides that a regulated contract, including any mortgage in so far as it relates to the contract, is void if it is entered into in contravention of subsection (1). Subsection (3) outlines the circumstances in which a credit provider may enter a contract in which the annual percentage rate exceeds the maximum rate but does not contravene subsection (1). Those circumstances are the following: first, the amount financed under the contract does not exceed $2,000; second, the credit provider has not, within the period of two years before the date of the contract, engaged in any business with respect to the provision of credit to the debtor, the debtor's spouse or any member of the debtor's family residing with the debtor at the date of the contract; and, third, the annual percentage rate - calculated by reference to the credit charge payable under the contract, reduced by an amount which is the lesser of 7 per cent of the amount financed or $35 - does not exceed the maximum rate.

It is important to understand the thinking behind this provision. It is based on a recommendation made by the Commercial Tribunal in its inquiry report. The tribunal found that small lenders charged rates
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which are inflated by unduly high levels of profit and inefficient business practices. However, the tribunal did not consider that the imposition of a maximum rate ought necessarily result in a total withdrawal by small lenders from the consumer credit market. The tribunal felt, and the Government agrees, that there is significant scope for small lenders to reduce their high profits and to modify their current inefficient practices so as to reduce their operating costs.

At the same time, the tribunal recognised that the higher cost of small loans reflects, to a certain extent, the fact that administrative costs involved in the provision of credit tend not to vary greatly according to the amount of the loan. The recovery of such costs by the lender will translate into a high annual percentage rate where the loan is of a small amount and is repayable over a short period. The tribunal concluded that it would be appropriate to take account of the costs of establishing an account for a small loan, but only in relation to the establishment expenses associated with a new relationship with a borrower. A common feature of lending by high interest lenders is that loans are refinanced on a regular basis, and the establishment costs involved in dealing with repeat customers are minimal. The tribunal concluded that a repeat customer is someone with whom the lender has carried on the business of providing credit within the last two years.

Under the Credit Act the annual percentage rate is a measure of the relationship between the total cost of the provision of credit - the credit charge - and the total amount of credit provided, or the amount financed. The Act prohibits separate fees and charges so small lenders must recover their establishment cost through the credit charge. The tribunal did not consider that small lenders should be permitted to charge establishment fees in addition to the credit charge, but recommended that they be permitted to reduce the credit charge by the amount of a notional establishment fee and to calculate an annual percentage rate with reference to this reduced credit charge. If the annual percentage rate so calculated is lower than the maximum rate, the contract is not in contravention of proposed section 170(1).

The notional establishment fee is the lesser of 7 per cent of the amount financed or $35. The tribunal recommended this amount having regard to the costs and fees charged by credit unions, which are not covered by the Credit Act in New South Wales, when they make small loans. Small lenders do not have to disclose the notional establishment fee, the reduced credit charge or the annual percentage rate so calculated. They do have to disclose the annual percentage rate calculated in accordance with the total credit charge, as do all credit providers, so that the true cost of the credit is known to the borrowers.

Proposed subsection (4) provides that if a contract is void because it contravenes subsection (1), the debtor is entitled to recover from the credit provider as a debt any amount paid to the credit provider under the contract. The original section 170 contains a similar provision. Proposed subsection (5) is a regulation-making power. The tribunal recommended that all regulated contracts should contain a prominent statement of the annual percentage rate, with an explanation of its use as a comparator. The tribunal also recommended that contracts where the annual percentage rate exceeds the maximum rate in accordance with proposed subsection (3) should contain a warning statement for the information of borrowers. It is intended that the finance industry and financial counselling organisations will be consulted about regulations to give effect to these recommendations. Proposed subsection (6) preserves the tribunal's power to reopen unjust contracts which are not void by reason of new section 170. The original section 170 contains a similar provision. I commend the bill.

Debate adjourned on motion by Mr Amery.

Mr SPEAKER: Order! It being in the vicinity of 5.15 p.m., pursuant to sessional orders the debate is interrupted.


Mr MORRIS (Blue Mountains) [5.12]: I raise a problem related to helicopters. Helicopters have flown for many years in the Blue Mountains area. The Katoomba airfield is privately leased by a very good friend of mine, Dr King. Negotiations to open the airfield commenced in 1964 and the airfield was opened in 1966 by a then progressive council interested in tourism. For many years the airfield has been used by operators, including helicopter operators, for a range of services. It is in a strategic position at Medlow Bath. For years joy flights operating out of the airfield have provided great pleasure to tourists on a tight schedule wishing to look at the beautiful Blue Mountains area, one of the seven wonders of the world.

That joy flight service, which has catered for 5,000 to 6,000 passengers, now has serious problems resulting from the complaints of 28 residents to the local council. Council met and promptly closed down this service. This has concerned the people of the Blue Mountains because the airfield is used by the National Parks and Wildlife Service, by spotter craft used in the detection of bushfires started by electrical storms, by aircraft used for the rescue of hikers, for firefighting purposes and for a whole range of other purposes. Firefighting planes fuelled at the airstrip can fly into areas that are difficult to access. The Blue Mountains City Council voted almost unanimously to have the airfield closed down under the noise pollution provisions of the Environmental Planning and Assessment Act.

If the airfield is closed to the commercial helicopter operator, helicopters used for rescue work, firefighting and other purposes will be faced with a problem. The decision of the Blue Mountains City Council has become untenable. The council will not listen to reason; it has set the pace and has put the
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hurdles too high for anyone trying to reach a solution. I ask the Minister for the Environment, the Hon. Chris Hartcher, who is also the Minister responsible for the Environment Protection Authority and the National Parks and Wildlife Service, to set up a working party to find a solution which will enable helicopter operators to use the airfield. I ask the Minister to give this matter serious consideration, as moves are afoot to close the airfield, and, once it is closed, it will be gone for ever. Facilities will not be available for combating bushfires, undertaking rescues or providing joy flights.

The Blue Mountains area is a rugged area, and old mother nature can close in very quickly with fogs, mists and rain. As recently as last Sunday the CareFlight helicopter rescued from a cliff ledge a fellow who had broken his leg. It is important for the Minister to take urgent action to consider relevant matters and to set up a working party to work through problems with flight paths so that proper checks and balances can be put in place to enable this vital facility to remain open. The airfield is important not only for tourism but also to the local area. The chap from Melbourne who is taking over the business aims at buying two modern helicopters. As the need is great, I recommend that the matter be considered urgently. [Time expired.]

Mr CAUSLEY (Clarence - Minister for Agriculture and Fisheries, and Minister for Mines) [5.17]: I thank the honourable member for Blue Mountains for raising this issue. It obviously is in the domain of the Minister responsible for the Environment Protection Authority and the National Parks and Wildlife Service. As a local member I am becoming increasingly disturbed by the intolerance of those in the community who seem to consider their own views and do not take into account the broader community view on these issues. I shall certainly raise the matter with the Minister, who hopefully will set up a committee to resolve the problem raised by the honourable member.


Mr ROGAN (East Hills) [5.18]: I wish to refer to an issue which has arisen in the Maitland area regarding a company called Hunter Electricity. The company was efficient until it undertook a contract to supply power to the western region under the western electrification scheme. It operated on such an efficient basis that it received several awards for efficiency which, if time permitted, I would place on the record. Many members of the Electrical Trades Union work for this company. If it closes down between 100 and 150 jobs will be lost.

The matter was raised with the Minister for Energy, and Minister for Local Government and Co-operatives, who commissioned Price Waterhouse to prepare a report on the company. As a result of the report the company's contract with the Office of Energy was terminated and the company is now considering liquidation. The company has not had access to the report in order to determine whether any matters need to be argued. Indeed, the company has sought mediation to get all the parties together - the Office of Energy; Hunter Electricity, the firm involved; and Sydney Electricity, which is oversighting the job - to find a solution that would enable the company to complete the contract that involves the important project of supplying electricity to the far western region of New South Wales.

The termination of the contract not only affects this company but the property-holders in the western region. Indeed, typical of the people in that region, property-holders Mr Roger Day and his wife Mary have forwarded a fax to the Premier; the Minister for Energy; the local member, Mr Bill Beckroge; the Director of the Office of Energy, Mr Norm Watson; and others, stating that more than two years ago they paid a $5,000 deposit and recently completed $11,000 of rewiring and upgrading of their house, shearing shed and quarters in readiness for grid power, which was expected months ago. If this company goes into liquidation, it is unlikely that another company engaged to take over this work will be able to complete it in the same time. As a result, these property-holders will be further denied the supply of electricity for which they paid a deposit two years ago and outlaid a significant amount of money for the rewiring of their properties in anticipation of power that simply will not be forthcoming.

I strongly urge the Government and the Minister to immediately release the Price Waterhouse report on Hunter Electricity so that the company may determine whether there are grounds to put a case to the Office of Energy to complete the contract, and to take up the suggestion of the company to put in place mediation, which might be a way of resolving the difficulty. What is at stake is the operation of a company that has been carrying out excellent work on coal mines and the like. If the company goes down, 150 jobs will go with it. Of particular concern is the role of Sydney Electricity, which is the overriding consultant on this project and has already received fees of approximately $800,000. It may be that Sydney Electricity is not the most suitable company to oversight a job in the far western region.

Mr ACTING-SPEAKER (Mr Tink): Order! There is too much audible conversation in the Chamber.

Mr ROGAN: Indeed, it may be much better if Broken Hill Electricity were to complete the work of Sydney Electricity.

Mr CAUSLEY (Clarence - Minister for Agriculture and Fisheries, and Minister for Mines) [5.23]: I am not privy to the details the honourable member for East Hills has raised but I am sure the Minister for Energy will reply to the comments he has made.


Mr COCHRAN (Monaro) [5.23]: I speak on behalf of the residents of Adaminaby and its surrounding districts, and particularly the Adaminaby
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fishing club, which I visited last week in the course of one of its meetings. I met and spoke with John Sutton, the president of the Adaminaby fishing club; his wife, Jenny, who is the secretary; and Mr Ray Vickery, who is a member of the Monaro Acclimatisation Society and a keen fisherman. I wish to draw to the attention of the House and the Minister for Agriculture and Fisheries the particular issue relating to the recognition of the rainbow trout as a native species. Over the past 100 years the rainbow trout has become one of the central attractions in the Snowy Mountains during the off-snow season, and is fast becoming an important aspect of the tourist industry in the Snowy Mountains.

Recognition of rainbow trout as a native species is important to the local tourist industry because it needs to continue to restock the streams so that the tourist industry in the surrounding districts can take the best advantage of summer time recreational activities which are so important to the sustenance of that industry. It was interesting to note in discussions with the fishing club that some sections of the community, I am told, consider that the rainbow trout should be treated as a feral or exotic species - which is not consistent with the environment of the Snowy Mountains region - and, in fact, may be a threat to some other marine species in the area. Of course, I argue this is now nonsense. For more than a hundred years the rainbow trout has assimilated into the Snowy Mountains trout streams so well and in such a fashion that other marine species in the area have adjusted to the presence of the trout, to such an extent that the rainbow trout may form part of the ecology which is important to the entire Snowy Mountains region.

I appeal to the Minister for Agriculture and Fisheries to request New South Wales Fisheries, particularly in the Snowy Mountains region, to look at this issue and to recommend to the department that the rainbow trout be accepted as a native species. In the past week I have travelled around the southern part of my electorate, which incorporates much of the trout fishing areas. I have visited Jindabyne, the Snowy River, Bombala, Delegate, Nimmitabel, and a small village outside Delegate called Craigie. I spoke to Mr John Reed, who is well known in the area. He and his son spend much of their leisure hours fishing in the streams nearby. They expressed grave concern that the stock numbers of rainbow trout had depleted over recent years and there was need to replenish the stocks from the Gaden trout hatchery. I have forwarded a submission to the Gaden trout hatchery and fishery inspectors, strongly recommending that fish be placed in those streams to rejuvenate the fortunes of the recreational fishing industry and that part of the tourist industry in my electorate.

I am aware that there are constant arguments, even among fishermen, about the benefits of introducing exotic species. Those of us familiar with trout fishing recreational hobbies are aware that when some exotic species were introduced into rivers such as the Murray and Murrumbidgee, for example the European carp, they wreaked havoc among the other native species - particularly the trout. In fact, the European carp eat the spawn of the trout and other species. There is no doubt it is a pest. However, I can confidently say that experienced fishermen and naturalists in the area believe the assimilation of the rainbow trout has caused no great harm at all. I strongly recommend to the Minister that this matter be taken up as a matter of urgency.

Mr CAUSLEY (Clarence - Minister for Agriculture and Fisheries, and Minister for Mines) [5.28]: The honourable member for Monaro is never short of surprises. It has never been raised with me that rainbow trout should be considered a native species. I dare say we could get into a debate with purists on that subject. I do not think rainbow trout or brown trout have caused too much trouble in the rivers of New South Wales. They have certainly been very good sporting fish for a long time. Whether they damage the ecology of the rivers is a moot point. It has not been suggested to me that action should be taken against rainbow trout or brown trout. This suggestion comes as a surprise to me.

I know that acclimatisation societies are concerned about trout numbers and enforcement by the Department of Fisheries. If those fish were declared native species, there would not be a need for acclimatisation societies. I note the concerns of acclimatisation societies. The Government is endeavouring to protect not only native species but also introduced species such as rainbow trout and brown trout. I will discuss with officers of the Department of Fisheries whether those fish should be classified as native species. I suppose an analogy is the question whether people who have been in country towns for 20 years are locals. This is probably an issue for the purist. The honourable member may be concerned that people are seeking to eliminate the species. Such action would not be supported by the fisheries department. I hope to resolve the issue after taking up the matter with the department. [Time expired.]


Mr PRICE (Waratah) [5.30]: I wish to raise a matter which has resulted from the abolition of State preferences, which could work against New South Wales and affect the quality of equipment purchased. I raise particularly the problem of the company O'Neill's (Newcastle) Pty Limited of 6 Ferry Road, Sandgate. Mr Bruce Gamack, the workshop manager, sent me a letter about tenders for an additional three mobile breast screening vans to be used for mammography in an attempt to reduce, through early detection, the serious consequences of breast cancer. There is no argument about the merit of providing another three vans. Perhaps many more should be provided to cover country areas. Ten minutes ago I raised this matter with the Minister's office, so the Minister is aware of my concern. The company claims that the contract amount for the three units ordered in June was $127,000 each. Brimarco Industries, an interstate company, successfully tendered.

Page 2883

It is claimed that a conventional drop deck semitrailer pantechnicon of similar dimensions to the vehicle specified, with air bag suspension, costs in the vicinity of $65,000. The letter states that the following modifications would have to be made: underbody side skirt and bins; insulation and internal walls, doors and linings; false ceiling and fully ducted reverse cycle air-conditioning; all electrical wiring and lights; all plumbing including two stainless steel tanks; internal cupboards and furniture with seats, carpets, awning, steps, windows, alarm system, television and antenna, microwave, fridge, hot water, sinks and radio cassette; fitting of the senographe unit with lead, screens and associated equipment; fitting of the processor and dark room equipment; nose cone, sideburns; and painting and signwriting.

The thrust of the letter is at page 56, item A.06, paragraph 4 of the tender document where reference is made to a vehicle "equal in design and construction to that built by O'Neill's (Newcastle) Pty Ltd." It appears that we may be purchasing units which will not perform to the specification. It is all right to chase on price and, under the current agreement, to go outside the State. But we should not jeopardise the State's industries in the process. Building of the Manly catamarans in Queensland has led to the demise of small shipbuilding in this State with the closure of Carrington slipways. Jakab Industries Pty Limited in Tamworth has suffered a severe setback as a result of the ordering of ambulances from outside the State.

A section of Commonwealth Engineering has folded because of the building of rolling-stock and engines outside the State. Now we are to buy mammograph vans that are built outside the State. New South Wales is capable of doing the work. If we have superior specifications, we should stick to them. The health of the women of this State is involved and there should be no compromise. If the specification cannot be maintained, it should not be compromised just because of an interstate agreement. I would like the Minister to investigate this matter before the purchase is finalised. [Time expired.]

Mr CAUSLEY (Clarence - Minister for Agriculture and Fisheries, and Minister for Mines) [5.35]: I do not have details of the tender prices and other matters. I shall refer the honourable member's concerns to the Minister
.


Mr O'DOHERTY (Ku-ring-gai) [5.37]: In the early hours of 21st August, just a few weeks ago, a fire was set in the canteen area of the Berowra Public School, which is in my electorate. That school will be 100 years old next year. The community is extremely loyal to and caring of its school. I would argue that hardly a community in Sydney is more caring of its local primary school than the community around Berowra Public School. There is good reason: It is a good school with good educational outcomes and offers terrific programs. Among other enhancements, a good computer program is operating. Recently, at the opening of a wombat crossing at the school, I was able to hear the school band. The band is doing very well. The school offers programs for gifted and talented children.

The dedicated staff under Lester Marquets look after the children extremely well. The staff are extremely loyal to the school. The fire in the canteen area came as a blow to the whole community. When I went into the first and second grade classes a few days after the fire I asked what the pupils were writing about in their compositions. I estimate that almost half the children said that they were writing about the fire. They were very upset about it. The canteen at Berowra Public School is in a demountable building. It has been there - this is the case with many demountables around the State - for quite some time. The demountable is a large, 11-segment structure with closed sides. It doubles as a food services unit and a shelter area for the school. The school has been able to hold many of its educational programs and school assemblies in the building because it is the one place where most of the schoolchildren can be accommodated under shelter at one time.

The fire destroyed the food services unit end of the building. There was a danger that when that area was taken away the department would replace it with something not quite the same as the familiar old shelter unit, which was called the canteen hall, because since the demountable was put there school numbers have dropped below the establishment level for that type of demountable building. The replacement building would have been new but smaller and with an open, caged type inside. The school was concerned about the impact on its educational program should such a building be provided.

Together with Beverly Peattie, the cluster director of the Ku-ring-gai cluster of schools, a particular caring member of the department - as so many are in the northern region - I looked at the options. I have pleasure in advising the House that as a result of negotiations between departmental officers, the Minister's office, my office and the school, the department will take away the damaged building. It will repair and renovate it, and refit the carpet that was purchased with money raised by the P and C. It will return the building to its original state in near record time - I am told that will be by the end of October. The school community will be very pleased with that outcome and I am delighted to be able to inform the House of that today.

I thank Mary-Anne Miller of the canteen committee for the work that her committee does in providing service to the school. I thank also Sharon Stevens, David McMillan and Richard Sakarovs, all of whom wrote to me about the problem. I have great delight in informing the House that in the State Budget handed down today by the Treasurer, Berowra Public School has been granted $400,000 for a new administration area and a new library. The work will be achieved by converting some of the existing
Page 2884
buildings and is expected to be completed in time for the school's centenary celebrations next year. It will be my pleasure to attend those celebrations and to rejoice with the school in the provision of new administration and library facilities. I arranged for the Minister for Education, Training and Youth Affairs to visit there earlier this year. Perhaps that visit was instrumental in having the capital works program approved for the 1993-94 financial year. The school has not heard of this yet, but it will hear of it first thing tomorrow morning, and I know that outcome will be received with delight.


Mr McMANUS (Bulli) [5.41]: I wish to discuss with the House the provision of sewerage services to Stanwell Park, Otford, Stanwell Tops, and a portion of Helensburgh, all regions within my electorate. On 17th August, 1992, the Minister for Planning and Minister for Housing wrote to me to advise that investigations for a sewerage project for Stanwell Park and adjacent communities would commence and that associated funding would be made available. I understand that as a result of the lack of funding by this Government, a major decision has been made that small communities will no longer be given high priority for sewerage connection. I understand also that the Water Board will review its priorities on 15th September. It is in this regard that I raise this matter as one of urgency as I am concerned about the actions of the Water Board and the Government.

I speak basically on behalf of one of my constituents, Carol Brandman, who is Secretary of Friends for Stanwell Park. She has given me a clear indication of that organisation's concern about the Government's backdown in this matter. Stanwell Park sewerage leaks overflow from pumpouts, and absorption traverses a recreation area in Station Street, through Hargrave Street and into North Lagoon at Stanwell Park East. The special environmental levy was not spent in this area during the first year of implementation of that scheme. Money has gone into Treasury coffers, with $200 million siphoned off into dividends and socked into consolidated revenue. I believe it is disgusting for the Government to act in this way. Officers of the Illawarra regional Water Board gave clear indications to my constituents in those small townships that sewerage systems for their districts were essential and that funding would be available for the completion of such work.

During the summer months the region - particularly Stanwell Park - is visited by thousands of tourists, including overseas tourists. Bald Hill, which is situated directly above Stanwell Park, regularly has national and international hang-gliding events that attract overseas visitors as well as Australian visitors. Otford and Stanwell Tops have similar problems to those at Stanwell Park, with leakages flowing into many estuaries. In turn those estuaries flow into the Hacking River, into the Royal National Park and eventually into Botany Bay. Given the sensitivity of the area, the leakage alone should raise the priority for sewerage works in this region. Any government that makes a commitment and 12 months later reverses that commitment is held in little regard by the community.

It is a disgrace and a scandal that this community continues to wait for sewerage construction. Much has been said about government policy on urban infill. Only last year the Government indicated that this issue would be given priority. The Helensburgh-Stanwell Park locality is one of the oldest residential areas in the Sydney-Illawarra region. If the Government is to continue with its policy of urban infill, this desperately needed sewerage construction must go ahead. But once again the Government has turned a blind eye as far as this region is concerned. These small hamlets were promised by Ministers that the matter would receive high priority. It is obvious to me that the Government must revise its sewerage program. I hope that on 15th February, when the Water Board is reviewing the program, it will give high priority to sewerage construction in this region.

I point out that the present situation is untenable. Some members opposite who live in Sutherland Shire would be aware of the problems of pollution in the Royal National Park. They would know that anything that happens around Otford, Stanwell Park and surrounding areas has an impact on the Hacking River. Effluent that flows into that river will ultimately flow downstream. The problem is not confined to the Illawarra: it affects also the Hacking River and the estuaries of Sutherland Shire. It is important not to play politics with this problem. Here is an issue that must be dealt with immediately.

Mr CAUSLEY (Clarence - Minister for Agriculture and Fisheries, and Minister for Mines) [5.46]: I never cease to be amazed by some of the statements made by Opposition members. I happen to have been here a little longer than the honourable member for Bulli has. I clearly recall that when this Government came to office there were ocean outfalls off Sydney from which untreated sewage was discharged to sea. There were enormous problems to overcome. For years infrastructure had been allowed to run down and poor work practices cost the community an enormous amount of money. Instead of the Government getting some credit for what has been done in this regard, it gets comments such as those made by the honourable member opposite. It seems to be endemic within the Labor movement across Australia that people make statements that cannot be corroborated. It is the old Goebbels theory: tell them often enough and they will believe it.

[Interruption]

I am talking about the statements made by the honourable member for Bulli about the environmental levy. At least this Government did something about the sewerage problems of this great city. I am sure that the Minister for Planning - and the Water Board - is quite capable of answering the statements made this evening by the honourable member for Bulli. I am sure the Minister will reply to those statements.

Page 2885

Mr CRUICKSHANK (Murrumbidgee) [5.48]: I wish to speak to the House about a serious matter within my electorate, that is, the problems being experienced by the Letona cannery. This is a very serious matter and I would be less than honest if I did not admit that the problems did not arise today and that they have existed for many many years. However, I am disturbed that efforts are being made to get a quick fix or a quick solution by introducing politics into the debate. Unfortunately, reactions to a receiver being called in to the Letona cannery are getting out of hand. People are trying to politicise and to factionalise the issue. They are becoming unrealistic about how the future of Letona should be shaped.

I want to see Letona revived as much as anyone else in the Leeton community wants it. It is a vitally important industry to that community, but we will have to wait for that revival. This morning when I was interviewed by Andrew Olle, he asked me what my situation in the electorate was like from a party point of view; in other words, is my electoral majority in danger because of the potential electoral backlash if I do not bow to any demand, even if the demand is unrealistic. These are the sorts of disgraceful actions that have taken place in the past in connection with the Letona cannery. Some people now want me to resign from Parliament. That is another political pressure to try to get a political decision from our Government on the future of the Letona cannery.

It is just as well to remind ourselves about these matters before anyone starts to do as they say they want to do. I have no qualms about that, but they say they want to restructure the Letona cannery. Honourable members should remember the things that have happened. The least effective aid to the Letona co-operative at present is someone throwing money at it. Running a cannery involves more than just money. I can understand how people feel about their jobs and their futures and how the growers feel about the almost $2 million owed to them. If that money is not paid, some farmers will go out of existence; they will be sold up. Not many small farmers owed $150,000 could withstand that financial pressure these days.

I understand how people feel. However, we must ask for a little time. It is wrong to push the problem a few years down the track because you want a quick political fix. Over the past 35 years the State and Federal governments have been heavily involved with the Letona cannery. Unfortunately, almost every year from 1983 until 1991 - the reports for 1992 or 1993 are not available - the debt has got progressively worse. I was told that in 1991 certain parts of the cannery were sold to avoid a $4 million shortfall. The actual shortfall for 1991 was almost three times that amount. The people of Leeton should be aware of these matters before they start to restructure.

In the past, there was a political resuscitation of the Letona cannery before every election. I know in 1983 - I was elected in 1984 - the State and Federal governments loaned money to make the cannery look shiny and nice before the 1984 election. I regret that. I regret that the politicians of that time made purely political decisions to try to resuscitate a private sector entity. They had no business doing that and they performed a great disservice to the people of Leeton and the workers at the Letona cannery. In 1992 I took the then Premier, Mr Nick Greiner, to the cannery. He was going to help it. [Time expired.]

Mr CAUSLEY (Clarence - Minister for Agriculture and Fisheries, and Minister for Mines) [5.53]: I thank the honourable member for Murrumbidgee for raising this issue. As Minister for Agriculture I have spoken to him on two or three occasions about this serious problem for the town of Leeton. I was not aware of it until some weeks ago when the Letona board came to see me about their problems. At that stage it was probably too late. Letona's real problem is the paucity of capital investment over a number of years. Most of the equipment is vintage 1947-1948. It costs $5 more to process a carton of canned fruit at Letona than it does at the SPC cannery across the border. It is obvious that that situation cannot continue.

The Leader of the Opposition has visited Leeton. The Mayor of Leeton, Councillor Woods, is seen by the Leader of the Opposition as a candidate for the Labor Party. Councillor Woods held a meeting some weeks ago but few issues were raised because the people were aware of the problems and of the need for an injection of outside capital. But that was not good enough for the mayor. He decided to bring the Leader of the Opposition to Leeton. In true Labor style he said he would promise some money. Remember the State Bank in South Australia; remember Pyramid in Victoria. It is the usual reaction. The debts for this year are $5 million, so where will $4 million go? Unfortunately for the future of the producers and for the town long-term restructuring is needed together with outside capital. I am sure offers have been made and that that will happen. My aim is that Leeton will have a cannery in the future for the township and for the local producers. A long-term solution - not the past bandaid solutions - is needed. Since 1983 approximately $40 million has been given by successive governments in loans and promises. [Time expired.]


Mr CLOUGH (Bathurst) [5.55]: I am pleased that the Minister for Agriculture and Fisheries is in the Chamber tonight. I had intended to speak on a totally different matter, but I will change tack and talk about some matters that have been referred to me in recent weeks. About 10 days ago I attended a meeting in Orange called by an Orange resident. Concerned farmers attended to outline the difficulties they are experiencing with banks and finance houses in the farming sector. The portfolio of the Minister for Agriculture and Fisheries suits him. I am sure he will take on board what I have to say. In the next few weeks I intend to give specific details about
Page 2886
matters I will raise tonight, but it is sufficient to say that I believe the farming community in New South Wales is getting an extremely rough deal from banks, stock and station firms and agents. Many farmers are desperate.

Some of the cases I will quote later include an interest impost on a farmer of 44.5 per cent applied by the State Bank of New South Wales. I did not believe that when I was told at the meeting in Orange until I saw the papers associated with it. The National Australia Bank also has made things extremely difficult for farmers. That bank is apparently trying to recoup loans given to people who owe in the order of $150,000 to $200,000 but letting ride loans of $1 million and more. The bank knows that if it forecloses on a farm worth $150,000 to $200,000 there is a possibility that it can sell the farm and recoup its money. But if the bank forecloses on people who owe more than $1 million, it will lose heavily. Therefore, it might as well cut its losses and wait to see if the farmer can trade out of his difficulties. I will reserve my future comments in relation to Elders Finance Company, but I wish to make passing reference to it tonight.

I have asked the fraud squad to assist me in dealing with a particular case in the Bathurst electorate because I think Elders' procedures are, if not criminal, close to it. The matter involves overfinancing of a farmer. The local stock and station agent, operating for Elders, recommended that a property be bought and advanced funds over and above the limit set. Naturally he got the commission for the sale. When the whole thing proved unmanageable at a later time the property was resold and he obtained a second commission. I have seen instances where interest has been added to interest so that the farm deteriorates. Accountants engaged by solicitors to determine the real situation of the farm have found errors in the accounts amounting to $130,000. These matters will take a great deal of airing in this Parliament. I will put before the Parliament facts, figures and names. Tonight I take the opportunity to refer the matter to the Minister for Agriculture and Fisheries because I know that he is interested in the farming community. He knows it is suffering because of the overabundance of funds made available to farmers. Most farmers are good farmers but poor accountants and managers. They have great difficulty abiding by the requirements of banks or stock and station firms. I ask the Minister to take note of the comments I have made tonight because I will give facts, figures and data to the Parliament at a later time when opportunity permits.

Mr CAUSLEY (Clarence - Minister for Agriculture and Fisheries, and Minister for Mines) [6.0]: I am pleased that the honourable member for Bathurst has raised these issues. I wish I had more than a couple of minutes to reply. There is certainly pain and suffering in the community at the moment, especially with regard to interest rates. It never ceases to amaze me that when people get into trouble interest rates are increased. That does not seem to me to be the appropriate way of recovering debt. Honourable members would be aware that this Government, through the rural assistance scheme, has advised lenders that rural assistance will not be provided if they charge more than 2 per cent above the going rate.


Mr KERR (Cronulla) [6.1]: Once again I remind the House of the deplorable saga of the failure of Sutherland Shire Council to avail itself of an offer by the Minister for Transport to establish a visitors office at Cronulla railway station. About 18 months ago the Minister, while visiting the electorate, made available the old luggage office at Cronulla railway station for that purpose - a most generous offer. As honourable members would be well aware, the Minister for Transport grew up in the Cronulla area. The people of Cronulla would be more than happy to act as volunteers behind the counter of that visitors office, because Cronulla people are workers and community minded.

Mr O'Doherty: Like their local member.

Mr KERR: I am glad that has been recognised. Tragically, 18 months has passed and the council has not seen fit to take up the offer. I am pleased that the Minister for Sport, Recreation and Racing is the Minister at the table because, as a resident of Sutherland shire, he and his family would have benefited had the offer been taken up. Australia is the best country in the world, and the Sutherland shire is the most beautiful part of the best country in the world. However, Sutherland council has a remarkable set of priorities. For example, it has spent hundreds of thousands of dollars mounting a campaign against the Federal Government's facility at Lucas Heights, which undertakes such subversive activities as medical and environmental research. In fact, Sutherland council is becoming known locally as the nuclear overreactor because when its protests were put to the test by the Federal Labor Government, the committee of inquiry found that the concerns could not be substantiated. Furthermore, the council has made money available to prevent the construction of a bridge at Woronora.

It is particularly appropriate that I speak on a day when millions of dollars have been made available to Sutherland shire by the Fahey Government, despite the fact that since 1988 the Federal Labor Government has robbed this State of more than $1 billion, which should have been made available to resource hospitals, schools and police services. People like Kevin Schreiber and Phillip Mortimer, from the Cronulla Chamber of Commerce, have made available funds and time to assist in setting up this visitors centre. It is about time the residents of the Sutherland shire were given a fair go by this council, which has managed to accumulate each year well over $100 million in ratepayers money, yet -

Mr O'Doherty: What is it doing with it?

Mr KERR: That very concern is being echoed throughout the Sutherland shire. When it comes to providing basic facilities for residents Sutherland Shire
Page 2887
Council is a begging bowl council. It instituted a waste recycling system and asked ratepayers to donate money to pay for the system. It put a notice in the pay packets of its employees asking them to donate money so that the council could employ apprentices. How is the council using the ratepayers' money? It is using it to support Labor Party candidates at State and Federal level!

Mr O'Doherty: It is a disgrace.

Mr KERR: It is a disgrace, because we should be working together as Australians to provide basic services. Not much is wrong in this State that could not be fixed with what is right in Cronulla. It is about time that Sutherland Shire Council performed its duties properly. When will it provide funds to enable a visitors centre to be opened? Many people want to use the facilities of that visitors centre, and many people would take the time and the trouble to staff it. Let us not keep the attractions of Sutherland shire a State secret; let us ensure that, in a recession, people have access - [Time expired.]

Mr DOWNY (Sutherland - Minister for Sport, Recreation and Racing) [6.6]: I listened with great interest to the honourable member for Cronulla. It disappoints me that Sutherland Shire Council has not taken up the offer of the visitors centre, but what else can one expect from Sutherland Shire Council? These days it seems that the only interest Sutherland Shire Council has is to political point score and abuse ratepayers' money by establishing political campaigns against the State Government. The latest example, as alluded to by the honourable member for Cronulla, is this so-called roads-before-bridge committee, which is wasting ratepayers' money on direct mail campaigns and publishing pamphlets that are full of outrageous lies and distributing them to residents.

Recently, one resident complained to me that he had received a letter which stated that he had signed a petition against building the Woronora Bridge when, in fact, he had signed a petition in favour of building the bridge. He was most outraged that Sutherland Shire Council was wasting his money. Sutherland Shire Council is now seeking to blame the State Government for its dual occupancy policies - policies that the council put in place. But the residents have not been conned by that approach; they are contacting me and the honourable member for Cronulla to let us know that they know where the fault lies, and it lies with Sutherland Shire Council. I will ensure that the Minister for Tourism is informed of the concerns of the honourable member for Cronulla. I hope that Sutherland Shire Council gets back to doing what it is supposed to be doing, and that is representing the people of Sutherland Shire and providing the facilities that those residents deserve.


Mr CRITTENDEN (Wyong) [6.8]: I raise a matter of interest not only to my constituents but also to all residents of the Central Coast. The Central Coast Area Health Service plays an important role in their lives. They need to know it is performing well and delivering the best health services possible with the available resources, now more than ever in times of fiscal restraint - which the Government tells us is necessary - we need to squeeze the most we can from every dollar allocated to area health services. Against this background, when employees come forward expressing concerns about the expenditure of money, it is vital that they can do so without fear of victimisation or intimidation. We can sprout fine principles of industrial democracy and workplace participation, but it means nothing if, the moment a State Government employee dares mention the way in which resources have been used, all hell breaks loose.

There may be some who argue that lower level State Government employees have no obligation to protect us from waste or malfeasance, but no one here would deny, even for a moment, that when State Government employees do raise such issues we have an obligation to protect them from those in high places who take it upon themselves to run bureaucratic empires with the disdain for others that is worthy of a Caesar or a Constantine. When two staff members attempted recently to carry out their duties in the Central Coast Area Health Service, their efforts met with frustration - not the ordinary garden variety of frustration. This was a far more insidious and vicious attack than they had ever previously encountered. They were abused and threatened. They were humiliated by someone whose position made it extremely difficult for them to resist. I will come to the details of this case in a moment, but even if - and it is a very big if - their concerns proved groundless, this was not the way the serious issues they raised should have been treated.

Society is going through difficult times. We often hear of the economic problems facing us, but we tend to ignore other equally important problems. One of those problems is the growing doubt expressed about the integrity of our institutions. That doubt is not lessened by what has happened in the Central Coast Area Health Service. When questions were asked - whether about purchases for which there seemed to be inadequate documentation, or resources which appeared to have been used in inappropriate ways - the response was savage. There is insufficient time to detail all that has taken place, but I shall mention merely a few of the events that concern me.

Firstly, the employees to whom I have referred were subjected to foul-mouthed threats, told their jobs were in jeopardy if they continued to ask questions and left in no doubt whatsoever that in this particular empire the emperor's decision was final - very final. Secondly, on Friday, 16th July, a person identifying himself as a frightened supplier made a telephone call to a member of the hospital board to report that he had been pressured to make a false statement. He feared that a refusal would result in the loss of hospital contracts. Thirdly, a hospital board appears to have been kept in the dark in a manner which permits an unscrupulous bureaucrat to ride roughshod over staff and reward cronies for their silence. Fourthly, in one case a so-called independent consultant reported alleged computer breaches by an employee. He was then given that person's position and engaged in similar breaches himself - on a quite
Page 2888
significant scale, I might add. He was protected when the breaches were discovered - protected, incidentally, by staff who appear to be part of a cosy arrangement to cover up what is happening in this workplace.

The issues at stake here go beyond party politics. Honourable members might not agree on how much money should be allocated to particular needs. We may differ on the need to allocate resources to particular regions. We may argue over the relative merits of particular programs. We oppose one another strenuously, perhaps too strenuously at times when ideology divides us. But on these two issues - ensuring that the Central Coast Area Health Service uses its resources for activities on which they may be legally expended, and protecting public servants who carry out their obligations to protect taxpayers' money - I believe I will have the unqualified support of every member of this House.

At the moment there are other matters which go beyond questions of financial propriety - matters which have resulted in solicitors' letters. But I shall not canvass them at this stage. However, one thing is certain: these problems will not go away and cannot be swept under the carpet. The Minister for Health will have my support if he is prepared to take steps to ensure that the Central Coast has an area health service which is operating in the best interests of all those who work within it, or depend upon it for their day-to-day health care.

Private members' statements noted.


Motion, by leave, by Mr West agreed to:

That Donald Frederick Charles Beck, Christopher John Downy and Wendy Susan Machin be discharged from attendance upon the Standing Orders and Procedure Committee and that Bruce Leslie Jeffery, Malcolm John Kerr and John Harcourt Turner be appointed to serve on such committee.

Motion, by leave, by Mr West agreed to:

That so much of standing and sessional orders be suspended as would preclude the reporting date for the Select Committee upon Public Sector Superannuation Schemes being extended until 9th November, 1993.

Mr WEST (Orange - Minister for Energy, and Minister for Local Government and Co-operatives) [6.14]: I move:

That this House at its rising this day do adjourn until Wednesday, 8th September, 1993, at 2.15 p.m.

This motion is obviously procedural. Today I gave notice of the motion which will be moved tomorrow to set down the sitting pattern for the remainder of the session, but at this stage this procedural point needs to be overcome. I take this opportunity to thank the leader in the House for the Opposition, the honourable member for Ashfield, for his co-operation in proceeding through today's program. Obviously, the presentation of the Government's Budget is always important. It is also important to be able to indicate to the media and the community at large a point of time for the presentation for that Budget. The co-operation of all members of the House is greatly appreciated by the Government. I take this opportunity, on what is an historic day in the life of the honourable member for Myall Lakes, to congratulate him on his election by the House to the position of Chairman of Committees and Deputy-Speaker.

Motion agreed to.

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