SA Health

The Hon. K.J. MAHER (Leader of the Opposition) (14:34): I seek leave to make a brief explanation before asking the Minister for Health and Wellbeing a question about health contracts.

Leave granted.

The Hon. K.J. MAHER: In a forum of the parliament yesterday and then again on ABC radio this morning, the new chief executive of the health department made a stunning revelation that he signed a tender to go to the government when he was the chief executive officer of the private health provider Silver Chain, and then the former chief executive officer of the private company Silver Chain who signed the tender document into government, in his new role as chief executive of the health department, signed that contract through to the Minister for Health. So, in effect, he signed it into government, came into government and then weeks later signed it over to the minister to approve the very same person.

The PRESIDENT: It's not a debate, Leader of the Opposition; get to your question.

The Hon. K.J. MAHER: My questions to the minister are:

1. Did the minister think it appropriate, when he approved this contract, that the briefing was signed by the same person who signed it into government when he was working in the private sector?

2. Does the minister believe that the chief executive has acted in line with his contractual responsibilities that he signed when he became the chief executive in doing so?

The PRESIDENT: Minister.

Members interjecting:

The PRESIDENT: Order! Let the—

Members interjecting:

The PRESIDENT: Leader of the Opposition, silence. Allow the minister to answer your question.

Members interjecting:

The PRESIDENT: It's not the time for commentary, Leader of the Opposition. It is not time for commentary. Listen to the minister.

The Hon. S.G. WADE (Minister for Health and Wellbeing) (14:36): Mr President—

The Hon. K.J. Maher interjecting:

The PRESIDENT: Don't defy me, Leader of the Opposition. Do not defy me.

The Hon. S.G. WADE: —I would explicitly not accept the implication in the Leader of the Opposition's question about Dr McGowan's involvement in the specific contract that is the subject of the question. I'm happy to take that—

Members interjecting:

The PRESIDENT: Order! I can't hear the minister.

Members interjecting:

The PRESIDENT: Leader of the Opposition, silence. Let the minister answer.

The Hon. S.G. WADE: My simple point is that RDNS Silver Chain has both Western Australian and South Australian operations, and I will take on notice whether or not Dr McGowan was involved in the—

Members interjecting:

The PRESIDENT: Leader of the Opposition, let the minister answer.

The Hon. S.G. WADE: —submission. Mr McGowan is the former chief executive of Silver Chain, of which—

Members interjecting:

The PRESIDENT: Leader of the Opposition, you have ample time to ask other questions.

The Hon. S.G. WADE: Mr McGowan is the former chief executive of Silver Chain, of which RDNS is a wholly-owned subsidiary. SA Health has been in commercial discussions regarding the provision of community care services by RDNS. The agreement for RDNS to provide community care services was approved through the appropriate procurement process. As is the usual process, a recommendation from the procurement panel was briefed through to SA chief executive Chris McGowan for his approval.

Upon receiving the procurement panel's brief and recommendations, Mr McGowan discussed the agreement with me as the Minister for Health and Wellbeing. While there were no suggested changes to the recommended service provider nor the services to be provided, Mr McGowan—

Members interjecting:

The PRESIDENT: Order! I can't hear the minister.

The Hon. S.G. WADE: Mr McGowan did discuss reducing the duration of the contract from a proposed three-year contract to a one-year contract. This was suggested so as not to tie up SA Health's resources for a long period of time. The Minister for Health and Wellbeing—that's me—agreed with his suggestion and a subsequent submission with a shorter duration was prepared and signed. Mr McGowan sought Crown legal advice and advised that the action was appropriate.