REGIONAL SUBSIDIARIES

The Hon. J.S.L. DAWKINS (15:06): I seek leave to make a brief explanation before asking the Leader of the Government a question about regional subsidiaries under section 43 of the Local Government Act.

Leave granted.

The Hon. J.S.L. DAWKINS: On 3 December 2009, this council passed the Local Government (Accountability Framework) Amendment Bill which amended the Local Government Act 1999. During the committee stage of the bill, I sought and obtained a commitment from the leader (the then minister for state/local government relations) to introduce regulations that would exempt small regional subsidiaries, such as regional local government associations, from the requirement to establish an audit committee.

On 22 June 2010, I asked the minister in her former capacity whether the regulations had been finalised, and the minister responded by saying:

In terms of the regulations, I am advised that work has commenced. However, they have not been finalised as yet. They will be completed as soon as we can possibly get them done.

On 29 September 2010, three months after the legislation came into operation and still not having sighted the regulations, I asked again that this matter be expedited in the best interests of these regional subsidiaries. The minister again stated:

I know that I did consider these issues. I know that I was also sympathetic to the concerns they raised and did seek advice...In fact, I understand that the regulations are expected towards the end of this year.

Given that there had been no action by the end of last year, I also raised this matter with the Hon. Bernard Finnigan when he became the Minister for State/Local Government Relations. He indicated that the agency for state/local government relations is working on a number of draft regulations.

We are now onto our third minister for state/local government relations since December 2009, but I was disturbed to hear that the Murray and Mallee Local Government Association advised attendees at its AGM last Friday that it has not had a response from any minister about this important issue. Given that it is now 19 months since I first raised the issue, and 12 months since the leader in her former capacity gave a commitment to commence work on regulations to exempt small regional subsidiaries from establishing an audit committee, I ask the leader:

1. Will she ensure that the new Minister for State/Local Government Relations responds to the Murray and Mallee Local Government Association and other similar bodies?

2. Will the new minister uphold the promise of the former state/local government ministers to introduce regulations exempting small regional subsidiaries from establishing an audit committee?

3. Will the new minister agree to reimburse regional subsidiaries who, in complying with this legislation, may have incurred unnecessary costs to their detriment?

4. Will the new minister, in good faith, show leniency on regional subsidiaries who have not complied with the legislation, having relied on the former minister's (the leader) undertaking in June 2010 (before the legislation was operational) to exempt them by regulation?

The Hon. G.E. GAGO (Minister for Regional Development, Minister for Public Sector Management, Minister for the Status of Women, Minister for Consumer Affairs, Minister for Government Enterprises, Minister for Gambling) (15:09): I thank the honourable member for his important and persistent questions. He is very persistent, and I acknowledge him for that. As the honourable member would know, the responsibility for progressing this particular matter relating to regulations that exempt subsidiaries now rests with the Hon. Patrick Conlon, who is now Minister for State/Local Government Relations.

I know the honourable member appeared to express frustration at there being a third minister in a fairly short period of time. Nevertheless, I can come to this place and confidently say that the Hon. Patrick Conlon is an extremely enthusiastic and very keen Minister for State/Local Government Relations. This is a policy area that he has a great deal of passion for and personal interest in.

The Hon. Patrick Conlon was delighted to be given responsibility for state/local government relations and he has picked up these responsibilities with relish, enthusiasm and passion, as I have said. When I forward these questions to the honourable member in another place, I am quite confident that he will pursue these matters with enthusiasm and deal with them in the most expeditious way that he possibly can.