PUBLIC SECTOR SALARIES

393 Mr HAMILTON-SMITH (Waite—Leader of the Opposition) (17 November 2008). With respect to the report of the Auditor-General 2007-08—part C, page 59—Why was $57 million appropriated from the Consolidated Account for increases in public sector salaries under section 15 of the Public Finance and Audit Act 1987 in 2007-08, when the last such appropriation was made in 2005-06?

The Hon. K.O. FOLEY (Port Adelaide—Deputy Premier, Treasurer, Minister for Industry and Trade, Minister for Federal/State Relations): I have been provided the following information:

Section 15 under the Public Finance and Audit Act 1987 ('the Act') provides:

'Where by reason of the award, order or determination of a court, tribunal or other body empowered to fix salaries, wages or allowances, additional money is required to meet increases in salaries, wages, allowances, pay-roll tax or superannuation contributions payable to, or in respect of, employees whose salaries, wages or allowances are paid wholly or in part out of public money, the Treasurer may appropriate an amount sufficient to cover those increases from the Consolidated Account.'

Section 15 under 'the Act' provides government with the flexibility to manage within the limits set by Parliament in the annual Appropriation Act, while also meeting appropriation requirements that are unforeseen when the annual Appropriation Act is drafted.

Section 15 under 'the Act' has been used where the appropriate legislative authority, (typically the Industrial Relations Commission), ratifies enterprise bargaining agreements that require material amounts of appropriation to fund wage and salary payments to public sector workers.

Financial years 2005-06 and 2007-08 were two such years when enterprise bargaining agreements were ratified for some of the larger public sector employment groups such as education staff, public sector wages parity group, salaried medical officers (2005-06), and nurses/midwives and police (2007-08).