CHIEF EXECUTIVE CONTRACTS

The Hon. R.I. LUCAS (15:01): I seek leave to make a brief explanation prior to directing a question to the Leader of the Government on the subject of chief executive contracts.

Leave granted.

The Hon. R.I. LUCAS: In about October 2011, Mr Geoff Knight was transferred from his position as CEO of PIRSA to CEO of DMITRE. At that time, the former chief executive officer of DMITRE, Mr Lance Worrall (a former adviser to the former premier, Mr Rann, who was on a contract of over $300,000) was demoted and became Deputy Chief Executive Officer of DMITRE. In February of this year, Mr Knight appeared before the Budget and Finance Committee and, when asked questions about his contract as CEO of DMITRE, he indicated that the contract (at that stage, in February) had not changed and there had been no change in salary or contractual arrangements.

Earlier this month, my office inspected the contract of Mr Knight as the CEO of DMITRE and that contract (which has been renegotiated and signed in October of this year) indicates that Mr Knight's contractual arrangements are for a total payment of $374,000 a year compared to $331,000 as the CEO of PIRSA, or a $43,000 pay increase. Recital C of his contract says:

In accordance with clause 2 of the previous employment agreement and section 34 of the Public Sector Act 2009, the Premier has indicated his intention to reappoint the chief executive to the duties to the expiration of the initial term.

I note, and I have indicated this before, that cabinet in October 2004 adopted a policy that a chief executive who was reappointed after a five-year term could only be reappointed for a maximum of three years in that position. Finally, I am advised that the government is about to announce another pay increase to not only Mr Knight but all executives in the public sector, backdated to July of this year, and that for Mr Knight it would be worth approximately an extra $10,000 a year on top of his $374,000. My questions to the leader are:

1. Is it correct that the government has given a $43,000 a year pay increase to Mr Knight? If so, on what grounds has that $43,000 pay increase been given?

2. Given that Mr Worrall has been demoted from chief executive to deputy chief executive of DMITRE, has his contract now been renegotiated and reduced from the more than $300,000 per year that he was being paid? If not, why not?

3. Is the government about to announce another general pay increase for all executives to be backdated to 1 July this year and, if so, how much and what is the extent of that particular increase?

4. Given that recital C of the contract, that I have already read into the Hansard, refers particularly to 'reappoint', can the Premier indicate if this is consistent with the cabinet policy agreed to in October 2004 about reappointments being only for a period of three years, when this particular reappointment was for a term of five years?

The Hon. G.E. GAGO (Minister for Agriculture, Food and Fisheries, Minister for Forests, Minister for Regional Development, Minister for Tourism, Minister for the Status of Women) (15:05): I thank the honourable member for his questions and will refer them to the relevant ministers in another place and bring back a response. Of course, this is just so typical: we see this time and time again from the Hon. Rob Lucas who knows no level too low to stoop. He regularly comes into this place naming senior public servants and the like with snide innuendo and snide inferences.

He well knows that these people are not able to come into this place and defend themselves; they are not able to do that. He knows how things work and he knows that they will not defend themselves. We see this behaviour all the time from the Hon. Rob Lucas, so we should not be disappointed and shocked at this sort of low-Iife behaviour. However, I have to say that I cannot get used to it and I think it is irresponsible behaviour.