MANUFACTURING, INNOVATION, TRADE, RESOURCES AND ENERGY DEPARTMENT

Mr HAMILTON-SMITH (Waite) (14:39): My question is to the Premier. Is it he who, to quote the Premier's public statements in recent days, 'counselled' the Department for Manufacturing, Innovation, Trade, Resources and Energy CEO Mr Geoff Knight about his criticism of the impact of the federal Labor government's minerals resource rent tax, and is it he who directed that Mr Knight should 'be keeping his views to himself in future'? And if it wasn't the Premier, who was it?

The SPEAKER: Premier, that does seem to be a question asking whether a media report is true but, if you are happy to answer it, I will allow it.

The Hon. J.W. WEATHERILL (Cheltenham—Premier, Treasurer, Minister for State Development, Minister for the Public Sector, Minister for the Arts) (14:39): Thank you, Mr Speaker. No, it was not me who counselled the relevant chief executive. It was the Minister for Manufacturing who, in fact, carried out the counselling—at my request. I will explain why.

Mr Marshall interjecting:

The SPEAKER: Premier, would you be seated? I warn the leader for the first time. Premier.

The Hon. J.W. WEATHERILL: Sorry, it was the minister responsible for the Department for Manufacturing, Innovation, Trade, Resources and Energy (the present Minister for Energy) who, in fact, carried out the counselling—at my request. I did that for three reasons. First, it is not the government's policy to criticise the MRRT (minerals resource rent tax). That is the first proposition.

Secondly, it is not appropriate for public servants, especially chief executives, to be entering into a matter of political controversy at the federal level—it is a matter of extreme political controversy. It does not assist the conduct of relations between our state government and the commonwealth government if one of our senior public servants is intruding on an area of political controversy as between the commonwealth and the state.

The third reason I believe that the chief executive should have been counselled is that he is wrong. He is making points about the investing climate, particularly as it was taken to be general, which could have reflected upon the investing climate in South Australia; and the truth is that the minerals resource rent tax has little or nothing to do with the South Australian environment because it does not tax minerals, which is a principal concern here.

The other matter which I would have thought is elementary is that the large miners, in fact, agreed to the MRRT. In fact, members will remember the controversy before the last federal election when the then prime minister negotiated directly with the various mining interests and got changes to the mining tax that the companies managed to extract, and now we are told that it is collecting little or no taxation at a federal level. How on earth it could have negatively affected the investing climate is, frankly, beyond me. Nevertheless, we have made those points. So, I think he is wrong and has made a mistake. I should quickly add, though, that he is an excellent chief executive. I think he was—

An honourable member: He was wrong.

The Hon. J.W. WEATHERILL: Well, he was wrong, but I think he was horrified at the way in which this was picked up and reported. Certainly, I think he was very contrite, as I understand it, from the conversations he had with the minister who spoke to him.

Mrs Redmond interjecting:

The Hon. J.W. WEATHERILL: We do not seek to gag our public servants—

Mrs Redmond interjecting:

The Hon. J.W. WEATHERILL: —but we will be saying to them—

Mrs Redmond interjecting:

The Hon. J.W. WEATHERILL: —that it is not appropriate for them to enter into matters of political controversy of this sort.

Mrs Redmond interjecting:

The Hon. J.W. WEATHERILL: It is just simply not appropriate. I think he accepts that.

Members interjecting:

The Hon. J.W. WEATHERILL: He said that, I think at the very moment that it was raised with him. He expected that there would be a conversation with government. He acknowledged that this was an embarrassment that was caused and that it was an error of judgement on his part.

Mrs Redmond interjecting:

The Hon. J.W. WEATHERILL: I must say that he runs an extraordinary agency which, frankly, is an exemplar, not only in terms of delivering results in the areas of endeavour that it looks at, but also he is an excellent public servant in terms of his relationship to government.