House of Assembly Fifty-Second Parliament, Second Session (52-2) 52 2 Parliament of South Australia House of Assembly published Parliamentary Committees Economic and Finance Committee: Annual Report 2012-13 ECONOMIC AND FINANCE COMMITTEE: ANNUAL REPORT 2012-13 The Hon. L.R. BREUER House of Assembly Giles The Hon. L.R. BREUER (Giles) (11:28): I move: That the 81^st report of the committee, entitled Annual Report 2012-13, be noted. I would like to present this report to the house. During the reporting period, the committee undertook a range of important oversight activities in line with the committee's obligations, and pursued a number of lines of inquiry pertinent to the functions of the committee. The committee also experienced a number of changes in membership during the period which provided an opportunity for a broad mix of insight and interest to each of the committee's activities. Throughout the 2012-13 reporting period, the committee met on 20 occasions, of which 16 were public hearings. During the period, the committee tabled the 2011-12 Annual Report, the Emergency Services Levy 2013-14 Report and the Workforce and Education Participation Inquiry Report. The Workforce and Education Participation Report was tabled on 14 June 2013 and included a lengthy inquiry exploring terms of reference focusing on barriers to participation into education, training and employment opportunities. The report made 14 recommendations, and to date the responses from the relevant ministers have been supportive of the findings. The report particularly highlighted the crucial role played by the Adult and Community Education (ACE) providers in connecting with some of the most marginalised people in the community. It was evident to the committee that the ACE sector facilitated people's increased participation in education, training and employment. The committee noted that community centres helped to build confidence in people, even when facing numerous challenges, while offering a range of non-accredited and accredited training in welcoming environments. However, the committee heard that many organisations in the ACE sector were challenged by short-term funding contracts which created an environment of ambiguity. The key recommendation made by the committee was to replace short-term contracts with contestable three-year funding contracts to ACE providers to strengthen and stabilise the sector. I was particularly pleased to see the Minister for Employment, Higher Education and Skills accepted the recommendation and plans within this calendar year to commence offering three-year funding contracts to a significant proportion of providers of both accredited and non-accredited training in the ACE sector. The taxation inquiry commenced on 22 December 2012, and the committee resolved to inquire into and report on the state's taxation system. The comprehensive terms of reference included, among other issues, the consideration of the fairness of the tax system and the impact of tax on the cost of living and the cost of business in South Australia. The committee received 36 submissions in response to the inquiry's terms of reference, and during the reporting period held the first of a number of public hearings. The hearings are continuing into the next reporting period and the inquiry is nearing completion. The committee also undertook a range of activities in relation to its various statutory functions. In accordance with the requirements of the Gaming Machines Act 1992, the committee received a report from the Office of Sport and Recreation in December 2012 regarding the 2011-12 sport and recreation fund allocations. The committee invited representatives of the Office of Sport and Recreation to appear on 30 May 2013 to discuss matters relating to the allocation of financial assistance to sporting and recreation bodies. With respect to the Health and Community Services Complaints Act 2004, the committee received the proposed budget for the Health and Community Services Complaints Commission, which the committee resolved to accept on 7 February 2013. Under the provisions of the Passenger Transport Act 1994, the committee noted one referral on 21 June 2013 regarding passenger transport services for the Victor Harbor area. In accordance with the committee's statutory functions regarding reporting of the proposed Emergency Services Levy each financial year, the committee noted in its report that the total expenditure on emergency services for 2013-14 is projected to be $247.3 million. The committee also noted that cash balances in the community emergency services fund were expected to reach $0.7 million by 30 June 2013. Furthermore, it was noted that there would be no increase in levy rates either for owners of fixed property or for owners of motor vehicles and vessels in 2013-14. In terms of the Auditor-General and ACPAC, continuing the committee's interest and responsibilities regarding public accountability the Auditor-General was invited to appear twice before the committee in February and April 2013 to discuss matters in relation to the Auditor-General's annual report. In addition, as presiding member of the committee I attended the Australian Council of Public Accounts Committees (ACPAC) biennial conference in April this year, along with the committee's research officer. This conference was held in Sydney and was hosted by the New South Wales parliament. I presented a report to the conference on the recent activities and functions of the Economic and Finance Committee. The conference theme was 'Public Accounts Committees: Adapting to the Changing Environment'. It was well attended by our interstate counterparts as well as a large international contingent, including Tonga (which is our parliamentary twinning partner), South Africa, Fiji, Vanuatu, United Kingdom, New Zealand, Bougainville, Indonesia, and more. South Australia will be hosting the next biennial conference in 2015. Throughout the reporting period the committee was supported by our wonderful executive officer, Mrs Lisa Baxter, who is now currently on maternity leave, and we all congratulate her on the recent birth of her beautiful baby; research officer on the workforce participation inquiry, Susie Barber, who has now taken over the role of executive officer until Mrs Baxter comes back, and is doing an excellent job; and our research officer on the tax inquiry, Mr Simon Altus. I understand he is very stressed at the moment—very tired and exhausted—and has done an absolutely incredible job in putting together our draft report on the taxation inquiry. I think he has worked about 25 hours a day for the last couple of weeks. I am looking forward to seeing him on Thursday; I will give him a Bex and a cup of tea, I think, to quieten him down. He has done an amazing job. I commend the Economic and Finance Committee's Annual Report 2012-13 to the house. Mr GRIFFITHS House of Assembly Goyder Mr GRIFFITHS (Goyder) (11:35): I wish to speak briefly from the opposition's perspective in support of the annual report tabled by the member for Giles, the leader of the committee. I have again had the opportunity to be reappointed for a bit less than half of the reporting period, but I know that all members who have been involved appreciate the spirit of cooperation that exists between all members of the committee. On occasion, when proposals are made for investigations to be undertaken, further consultation is required, which does not result in matters being supported, but there is an opportunity for us to appreciate the issues raised by each of us. Indeed, I have been pleasantly surprised by the areas in which some reports have been undertaken. The tax inquiry, to which the member for Giles has referred, is a very detailed one; there is absolutely no doubt about that. We have received submissions in which many people talk about the problems but not necessarily the solutions, so it will be a great challenge indeed for not just the committee in determining what its report will say—and I recognise Mr Altus and his efforts—but what the parliament and the government of the future decide to do about it. One little frustration I have is the Industries Development Committee, to which I am lucky enough to have been returned as a member and on which I have been a member in the past, but which has not met since 2005. I believe that to be correct: that it has not met since 2005. I am rather frustrated by the member for West Torrens as a previous chair of the committee and from a comment he made here in the chamber about his hope that it will be convened in the future to discuss issues. Even though that was probably a good eight or nine months ago, it has not occurred. I believe that it is very necessary for a wider level of knowledge to exist on the understanding that confidentiality is required to be preserved by all members of the committee about the support and negotiations that are occurring from a government perspective with some of the challenges that industry in South Australia is facing. I hope there will be an opportunity for the Industries Development Committee to meet in future because I believe that it can take on a particularly important role. I also wish to note on behalf of the opposition the fine efforts made by staff in support of the Economic and Finance Committee. We were very pleased to have a small luncheon to recognise Mrs Lisa Baxter before she went on maternity leave and the subsequent delivery of her baby, and we congratulate her and her husband of the birth and hope that all is well. I look forward to this report being adopted and, indeed, to future discussions about the Economic and Finance Committee. I might be a bit of a masochist in some people's eyes, but I actually do appreciate knowledge. I think the committee allows members in a really bipartisan way— Mr Gardner House of Assembly Mr Gardner: He likes estimates too. Mr GRIFFITHS House of Assembly Mr GRIFFITHS: I do—to understand the intricacies of issues and to sit down collectively and try to work out something for the better. So, the principle is very strong and I hope it is supported. I look forward to further appointments in future. The Hon. R.B. SUCH House of Assembly Fisher The Hon. R.B. SUCH (Fisher) (11:30): I commend the Economic and Finance Committee on its annual report. I was once a member of that committee. It was then referred to in the media as the powerful Economic and Finance Committee. I do not know whether— The Hon. L.W.K. Bignell House of Assembly The Hon. L.W.K. Bignell: All-powerful. The Hon. R.B. SUCH House of Assembly The Hon. R.B. SUCH: All-powerful. I do not know whether it has lost some of its mojo, but the committee has done some good work. I would like to just raise the issue that I believe the Economic and Finance Committee should be looking in detail at each government agency. Members might say that we have the estimates committees for that. That does not really do the job, nor does the follow-up to the Auditor-General's Report. I believe the Economic and Finance Committee should put every government agency—obviously the larger ones are included: education, health and so on—through the hoop. They should be required to justify and explain what they have done and what they are doing and also to indicate, for example, how many of their staff are actually on the front line, how many are in the office. Those sorts of questions need to be pursued vigorously. The current arrangements and modus operandi of the committee do not do that, and I think it is time that they did. At the moment, I do not think the people of South Australia, through the parliament, have the scrutiny they want in relation to government departments. I know that when I was on the committee we used to spend a lot of time worrying about whether what were then called water catchment boards were using too many biros or pencils. I think a committee like this should be looking at the expenditure and finances of all government agencies and departments. I think there would be not only incredible cost savings but also better accountability to the people of South Australia. The Hon. L.R. BREUER House of Assembly Giles The Hon. L.R. BREUER (Giles) (11:40): I thank members for their comments. I omitted this before, but I particularly want to pay tribute to the other members of the committee: the members for Ramsay, Colton, Davenport, Torrens, Goyder and Flinders for their hard work in the time that I have been the Chair of the committee. Motion carried.