Department of Treasury and Finance, $55,641,000

Administered Items for the Department of Treasury and Finance, $1,582,470,000

Membership:

Mr McFetridge substituted for Mr van Holst Pellekaan

Minister:

Hon. M.L.J. Hamilton-Smith, Minister for Investment and Trade, Minister for Small Business, Minister for Defence Industries, Minister for Veterans' Affairs

Departmental Advisers:

Mr R. Manton, Director, Veterans SA, Department of Treasury and Finance

Mr P. Williams, Director, Financial Services, Department of Treasury and Finance

Mr K. Naughton, Chief of Staff

The CHAIR: I think it is an excellent idea if the member for Davenport reads in the omnibus questions while we change advisers.

Mr DULUK: You can time me; I want to go under three minutes:

1. Will the minister provide a detailed breakdown of expenditure on consultants and contractors above $10,000 in 2015-16 for all departments and agencies reporting to the minister, listing the name of the consultant, contractor or service supplier, cost, work undertaken and method of appointment?

2. In financial year 2015-16 for all departments and agencies reporting to the minister, what underspending on projects and programs (1) was and (2) was not approved by cabinet for carryover expenditure in 2016-17?

3. For each department and agency reporting to the minister, please provide a breakdown of attraction, retention and performance allowances, as well as non-salary benefits, paid to public servants and contractors in the years 2014-15 and 2015-16.

4. For each year of the forward estimates, please provide the name and budget of all grant programs administered by all departments and agencies reporting to the minister, and for 2015-16 provide a breakdown of expenditure on all grants administered by all departments and agencies reporting to the minister, listing the name of the grant recipient, the amount of the grant, the purpose of the grant and whether the grant was subject to a grant agreement as required by Treasurer's Instruction 15.

5. For each year of the forward estimates, please provide the corporate overhead costs allocated to each individual program and subprogram administered by or on behalf of all departments and agencies reporting to the minister.

6. For each department and agency reporting to the minister, could you detail:

(a) How much was spent on targeted voluntary separation packages in 2015-16?

(b) Which department funded these TVSPs?

(c) What number of TVSPs was funded?

(d) What is the budget for targeted voluntary separation packages for financial years included in the forward estimates (by year), and how these packages are to be funded?

7. What is the title and total employment cost of each individual staff member in the minister's office as at 30 June 2016, including all departmental employees seconded to ministerial offices and ministerial liaison officers?

The CHAIR: Welcome back, minister, appearing now in your capacity as Minister for Veterans' Affairs. I declare the proposed payments open for examination, and I refer members to Agency Statement Volume 4. I now ask the minister to introduce his new advisers and make a statement if he wishes.

The Hon. M.L.J. HAMILTON-SMITH: I am here with Mr Rob Manton, Director of Veterans SA; Paul Williams, Director of Financial Services, Veterans SA, being administered by Treasury; and I am also here with Kevin Naughton, my Chief of Staff.

I would like to make some opening remarks. The period 2014-18 opens a great opportunity for us to reflect on the sacrifice and service of our World War I veterans, and we have been doing that throughout the period. We have had a number of significant initiatives. The Framework for Veterans' Health Care 2016-20 was launched on 9 August. The Veterans Advisory Council has focused its effort on issues associated with contemporary veterans transitioning into civilian life, child care for defence families, veterans' homelessness, looking at ways of capturing data from government agencies relating to veterans and veteran communities use of government services.

On the commemorative side, the opening of the ANZAC Centenary Memorial Walk on Kintore Avenue has brought what had been a concept for many years to reality and is a fitting tribute to the Centenary of ANZAC, and a credit to the agency that it was delivered on budget and on time. It was nominated in three categories at the 50^th anniversary of the Australian Institute of Landscape Architects SA Awards last Friday night and was successful in winning the Civil Landscape Award. The award was presented by Mr Deiter Lim who, with his team from Tract Consultants, was responsible for landscaping the memorial walk.

A very successful visit to Gallipoli to attend the centenary commemorations of the Battle of Lone Pine in August of last year was another highlight. That, together with the ongoing maturity of the South Australian Centenary of ANZAC website, serve to remind us of the courage and commitment of those past and present members of our defence force.

We have also just completed a visit to the battlefront of the western front with the shadow minister and His Excellency the Governor to signal that these soldiers were from local communities and from the States, as much as they were from Australia, and to be part of Australia's commemorations at that time.

I would like to thank and acknowledge to the committee the work of Sir Eric Neal on the Veterans Advisory Council, who has recently retired after eight years, to be replaced by Air Vice Marshal Mr Brent Espeland. The Veterans Advisory Council is doing a sterling job. Over to questions.

Dr McFETRIDGE: Can I add to the comments made by the minister that this is one of those rare areas in politics where it is not about political personalities or politics, it is about pride and passion and place and preserving the memories of the veterans who have been in every theatre of war, whether it is World War I or right through to contemporary veterans serving this country today. It is a pleasure to have the portfolio, and I thank the minister and particularly Mr Rob Manton for his cooperation in facilitating my inclusion in many of these celebrations and commemorations and particularly the two highlights: the trip to the Gallipoli peninsula last year and the recent trip to the western front in France, just a couple of weeks ago.

Can I also mention that fount of knowledge that came with us to the western front, Mr Bob Kearney; an absolute legend in the veterans' community. He, as I said, is an absolute font of wisdom and I think we need to make sure we nurture Bob's presence and include him as often as we can, because he is just an amazing guy.

It is a great privilege to be the shadow minister for veterans. I look forward to being the minister in 18 months' time, I hope. We need to make sure that we keep the area of veterans affairs well and truly up-front in all areas of the government's thinking. The first question relates to Budget Paper 4, Volume 4, page 174, and it will be the same reference for all of these questions. The net cost of providing services is $1.328 million. Has Veterans SA done any work to establish the number of veterans in South Australian prisons and secure mental health facilities and, if so, how many are in each? If not, will Veterans SA undertake to determine these figures?

The Hon. M.L.J. HAMILTON-SMITH: I thank the shadow minister for his question and for his general support in this portfolio area. We are collecting data on veterans. The Valuing our Veterans—Community Data Collection Project aims to establish a process for collecting that data on veterans and their families used in identifying state government services: health, mental health, education, corrections, social inclusion, homelessness and higher education. It is an important step.

The Department of Veterans' Affairs (DVA) 2014-15 Annual Report states that there are 25,463 South Australians with a DVA entitlement. It includes veterans, spouses, family members, war widows, etc. It is proposed that the data be de-identified so that all data collected is not able to be linked to specific individuals and that a process be established to enable data collection to be collated and published centrally.

The project team has examined international experience identifying veterans and their families. The research suggests that a recognised need for data on veterans and their families exists in the USA, UK and Canada. In November 2015, I wrote to a number of state ministers about the project and requested that a senior public servant be nominated as a liaison for the project. All ministers responded and the project team representatives met with the nominated liaison officers to request data.

On Corrections specifically, the Department for Correctional Services committed to the collection of data in relation to incarcerated veterans. DCS has also conducted a limited survey asking prisoners to self-report previous military experience. As at 29 March 2016, 30 prisoners have self-reported past military service. A project is underway to update the DCS admissions form. This will include questions about service in the ADF. This project is scheduled to be completed during 2017. Veterans SA will continue to liaise with DCS about a communications strategy to deal with this information—when it will be provided and how often.

It is hoped that prisoners who report previous military service will be asked if they are willing to have their details provided to peer support groups, such as ex-military rehab centres and ex-service organisations, during incarceration. I have had conversations with various members of the veterans advisory board who are also concerned about this. They are aware of people who are in gaol and they want to do something to help. We are working on it and we will work closely with all members of the house to look after our veterans who are in prison.

Dr McFETRIDGE: My colleague the honourable and gallant Andrew McLachlan in the upper house recently raised the issue of giving preferential treatment to veterans in the area of public employment. What is the government's position on employment assistance for veterans transitioning from the forces? Is the legislation still in place? I think it is a very old act of parliament that does actually refer to giving veterans preference.

The Hon. M.L.J. HAMILTON-SMITH: First of all, I just acknowledge that offering from the honourable member in the other place Andrew McLachlan. I think it is a really intelligent suggestion and I listen to it with great interest. I am aware that the veterans advisory committee have been doing some thinking about this themselves. I will hand over to Mr Manton in a minute but, where the opposition comes up with a really sensible suggestion, I am very keen to adopt it, and I think this one warrants further work. I will hand over to Rob.

Mr MANTON: Thank you, minister. At its last meeting in June, the Veterans Advisory Council, under its new chair, Air Vice Marshall Espeland, determined to form a subcommittee to build on work that was done in Western Australia and New South Wales, which examined exactly this opportunity which does exist. A subcommittee has been formed. Mr Bronson Horan, member of the Veterans Advisory Council, is chairing that group, which comprises both older and contemporary veterans.

They are due to report next week, at the next Veterans Advisory Council meeting, on discussions they have had, with a view to putting some policy options to government to look at ways that veterans can be given a priority. If it comes down to an issue of discrimination during an interview and how to pick between two very even candidates, one of whom is a veteran and one of whom is not, perhaps consider giving the nod to the veteran, based on his life experience in his time in uniform.

The Hon. M.L.J. HAMILTON-SMITH: We will keep working on that and I would be very happy to meet with you and Mr McLachlan and the agency, perhaps, to work out how we might make that happen. I would be happy to bring forward a proposal, if the Veterans Advisory Council agrees.

Dr McFETRIDGE: Another issue involving my colleague in the other place, the honourable and gallant Andrew McLachlan, is the Dardanelles cenotaph. I know he has had some opinions on that. Can you update the committee on what is happening with the Dardanelles cenotaph? Is it staying on South Terrace and moving to the original position, or is it being moved up to Kintore Avenue?

The Hon. M.L.J. HAMILTON-SMITH: This memorial walk has been extraordinarily well received. The original proposal included a proposal to move the Dardanelles cenotaph from its current location in the south Parklands to the northern end of the ANZAC memorial walk. There was some opposition to this. Members might be aware that the Dardanelles cenotaph was set up by, I think, predominantly the mothers, wives and womenfolk of our servicemen after the Gallipoli campaign, before the term 'ANZAC' had really been forged.

It was put in another location. It has been moved once already to its present location, but there was some resistance to it. I found, when I first became minister, that this project, to be frank, had become bogged down. I was quite concerned that it would not proceed. It had a high level of complexity. It involved the federal government, who kindly made a contribution, the state government and local government—the council. It involved the Governor's office and Government House. There were arguments about money, planning and its scope. It had reached outside of its core objects. I had to try to get it back on track and get delivery, and we were able to do that.

One of the levels of complexity that we excised early was the moving of the Australasian Soldiers Dardanelles Cenotaph because, clearly, that needed further work. So, on advice, I made a decision early to leave that part of the project out for the moment so that we would get on with the main game, which we delivered on budget and on time. I might ask Mr Manton to give the committee an update on exactly where that is at the moment.

Mr MANTON: The proposal to relocate the Dardanelles cenotaph required a DAC approval, so there was a process that we had to go through. It was approved, I think, about a month ago by the Development Assessment Commission. One of the folks who did not agree with the relocation applied to have it listed under state heritage; that has since been declined as well, so it can be moved. We are now in the 15-working day appeals period that is due to finish at the end of this week. My sense is that there will be an appeal and, if that is the case, we will work with the veteran community, the government and the Department of Treasury and Finance to determine how best to proceed to continue with the plan to relocate it.

To relocate it to what will be the centre of the memorial precinct will really, I think, just finish off that whole memorial precinct with the exception of perhaps tidying up along the Pathway of Honour along the northern end of Government House, but that is a project for another time. We are very confident. All of the approvals are in place. We are just waiting on the appeals process now.

The Hon. M.L.J. HAMILTON-SMITH: Can I just say that there were two considerations on my mind. One was I wanted to get the main walk completed on time, and this could potentially hold it up—that was point number one. Secondly, I wanted to give those who were concerned about the movement of this cenotaph a fair go, a fair say and a due process, which we are going through, as Mr Manton has just explained. They have every right to be listened to and have their views considered, and I just want to make sure everyone gets a fair go before we decide what the outcome will be.

Dr McFETRIDGE: On that same general area of preserving memories, minister, has any consideration been given or can consideration be given to creating some small grant funding for RSLs and community groups, particularly in small country towns, to clean and refurbish, as necessary, their cenotaphs and memorials? Certainly, when you go to the small country towns—in my case, one particularly close to me is Kangarilla—you read the names on those cenotaphs and, when you know the families, you really realise how much these cenotaphs mean to those small communities and the sacrifices that were made. Considerable parts of the community just left and never came back in some cases, so preserving those memories and cleaning and refurbishing those cenotaphs would be something that I think would be a worthwhile project for us.

The Hon. M.L.J. HAMILTON-SMITH: I thank the shadow minister for the question, which is a very good one. The answer is there is a program there that can assist these towns. The veterans' affairs portfolio allocated $274,000 in grants to the community in 2015-16. At one end of the spectrum was a $100,000 grant to the Legacy Club; at the other end of the spectrum was a $2,750 grant to the Farina Restoration Group to restore their memorial in exactly the way that the shadow minister has pointed out.

So there is a grant program there. There is $74,000 remaining from the Minister for Veterans' Affairs allocation of annual grants. We are still seeking applications for that and would be happy to receive them from any country community that wants to restore its memorial. There are certain criteria for applying for the grants. They are managed by Mr Manton and referred to me and are publicly available on the Veterans' Affairs website. Should any community want to restore, upgrade or repair its memorial, they are more than welcome to apply.

There is also a separate fund in the Anzac Day Commemoration Fund which also reports to me, and in that fund there is $350,000 that can also be bid for. The chair of that is Mal Hyde, former police commissioner. Again, that is another avenue for communities to follow.

Dr McFETRIDGE: Perhaps I will get the Meadows community group to apply as well, because the other day I noticed theirs is in need of a bit of a tidy up. Minister, at a recent veterans' function there was a guest speaker from Flinders University who talked about an archaeological dig at the Repatriation Hospital site. He was talking about the former air raid shelters, and there are always the rumours about the underground hospital. Can you inform the committee about the dig that is going on and what will happen to any artefacts that may be recovered? Will they be displayed somewhere?

The Hon. M.L.J. HAMILTON-SMITH: Yes, I will be following this with great interest. I thank the shadow minister for his question. There is a bit of history at the Repat site. In 1942-47 it was under the control of the Australian Army. It was known as the 105 Australian Hospital Springbank. Part of the hospital's history involved being prepared for invasion during World War II. Apparently several air raid shelters were constructed on the eastern side of the hospital to house patients and staff. The facilities are thought to include a fully set up operating theatre, recovery wards and general ward areas with triple bunk beds.

Many stories abound among staff and residents who remember the air raid shelters. The hospital took a decision in 1996 to research and document the locations of the installation with the Flinders University Archaeology Department in an effort to preserve this part of history. Oral histories have been accumulated, revealing significant amounts of information and stories. The stories of air raid shelters are intriguing, with oral and photographic evidence of their existence. Unfortunately, investigations and technology have not quite located their exact position. Further lost evidence may appear or a void or staircase may be discovered one day by accident during normal service excavations. We are very mindful of this, in the future, at that site.

As with the Anzac Centenary Memorial Walk, should any future excavations reveal the existence of underground shelters or similar below-ground structures, every effort will be made to preserve any relics located, and the ex-service community will be consulted for its advice regarding preservation. Until then, it will remain, as with the old Adelaide Gaol, one of Adelaide's many mysteries. All care will be taken to ensure the matter is handled sensitively and appropriately.

Dr McFETRIDGE: Whether we should have that state heritage-listed, I am not sure. The final question is one that Mr Manton gave me—no, that is not true! I understand there are a number of very significant celebrations and commemorations that are going to be held over the next 18 months, towards the end of 2018, to commemorate the major battles of World War I. The value that is obtained by visiting and commemorating these sites is, I think, significant for members of parliament. I must admit, I am still slightly traumatised—that is probably too strong a word, but I have not finished reading the book about Pozieres yet—by the tremendous impact that that visit had. Seeing those tens of thousands of names on memorials has had a really significant impact on us. Are there official delegations planned, particularly to commemorate World War I, minister? Certainly Beersheba is a significant one and Passchendaele is another.

The Hon. M.L.J. HAMILTON-SMITH: Yes. I thank the shadow minister for the question. The western front was by far the bloodiest and most disastrous of campaigns for Australia. In July 1916 Australian troops went into action at Fromelles. There were 5,500 casualties in 24 hours, nearly 700 of them South Australians. By the end of the year about 40,000 Australians had been killed or wounded—that is a lot of very distressed mothers and wives across the country.

In 1917, a further 76,800 Australians became casualties at Bullecourt, Messines and the four-month campaign around Ypres known as Passchendaele. It is very important that the states participate in the commemorations. One has to remember that these soldiers all came from local communities. Although we had been a nation since 1901, they identified very strongly as South Australian or New South Wales or Victorian battalions. You only need to look at the memorials in the villages and towns across South Australia to see how the local communities put up their boys and welcomed them home—those who came home—and then continued the work of their rehabilitation.

For that reason I have commissioned a history. It will reflect the local stories of South Australia's involvement in World War I, and I will have more to say about it later. It will focus on what happened in Prospect, what happened in Port Adelaide, what happened in Ceduna, what happened in Port Lincoln, Mount Gambier, Stirling and wherever. It will concentrate on the local stories. It will be a readable story. It will come in both a book form and a coffee table form with more photographs. The author I have identified as one Mr Bob Kearney. I am sure it will be something that all South Australians can hold to their chests in a very special way. As the shadow minister points out, this is all about families and local communities.

Yes, for the Battle of Beersheba, 31 October 1917 and the third battle of Ypres, September-October 1917, there will be further commemorations. The commonwealth is organising these but I want to make sure that we are representing our local communities at those commemorations. We said we would never forget and I think it is beholden on South Australians and our government and our local governments to make sure that we do not. Being there for these commemorations I think is part of that story. Instead of just leaving it up to the federal government we should be there.

I was pleasantly both surprised and happy to see so many South Australians at Menin Gate when I read the ode and the Governor laid a wreath. We were all there, including my own constituents who came up afterwards to say, 'G'day, how are you? It was terrific to be here.' It was just wonderful. Each had their own story: a great uncle or a great-grandfather, each with their connection. It was a terrific thing. That is why we need to be there representing our communities—and we will be in 2017, and I hope 2018.

Dr McFETRIDGE: Thank you, minister, and certainly I look forward to reading the book. I am sure Mr Kearney will do us proud. The late Max Venables, a good friend of mine from Glenelg, wrote a book called FromWayville to Changi and Beyond relating to war stories. He spent three years in Changi Prison in World War II. These books are high impact just as visits to memorials are high impact. I recommend to all South Australians to read the local stories. I look forward to reading his book. With that, thank you, minister.

The CHAIR: Yes, I thank the minister and his advisers, and members of the committee and staff for all their hard work and cooperation today. I declare the examination of the proposed payments be completed.

At 14:14 the committee adjourned until Wednesday 3 August 2016 at 09:00.