KordaMentha

The Hon. C. BONAROS (15:04): I seek leave to make a brief explanation before asking the Treasurer a question in relation to legal bills.

Leave granted.

The Hon. C. BONAROS: The state government has contracted the services of corporate advisory firm KordaMentha at significant cost to taxpayers to recover the finances of CALHN, the network that runs the RAH and The QEH. Addressing parliament's Budget and Finance Committee recently, Mark Mentha told the committee, I quote:

This would be the most broken organisation I've ever witnessed, both financially and clinically. This is a failing organisation.

I have been told KordaMentha is using a Victorian-based legal firm, Arnold Bloch Liebler, for its legal advice in preference to using state-based lawyers, although I am aware that they have from time to time used a local firm. Under the Treasurer's own orders to public authorities such as CALHN who wish to engage legal practitioners, referred to as Treasurer's Instruction 10, the direction is explicitly clear, and I quote:

The Chief Executive of a public authority shall not use the services of a legal practitioner other than the Crown Solicitor without first seeking the advice of the Crown Solicitor on whether the use of such a practitioner is appropriate.

My questions to the Treasurer are:

1. Is the Treasurer aware that KordaMentha/CALHN is using a Victorian-based legal practice for legal advice?

2. Did KordaMentha/CALHN first seek the advice of the Crown Solicitor, as per the Treasurer's own instruction, as to whether this was appropriate?

3. Does the Treasurer believe it is appropriate that KordaMentha/CALHN engage an interstate legal firm for legal advice in preference to an Adelaide-based firm?

The Hon. R.I. LUCAS (Treasurer) (15:07): I am happy to respond to the honourable member's questions to the extent that I can. It may well be that the Minister for Health, my very hardworking and well-respected colleague the Hon. Mr Wade, might be able to provide a bit more detail in relation to the specifics of the honourable member's question.

In relation to Treasurer's Instructions, they are quite clear, and the member has read them out to the chamber. There is a process that agencies can adopt where they can use not Crown advice but can use private solicitors, both from within South Australia and externally as well. The honourable member has accurately reflected the nature of the Treasurer's Instruction; that is, the Crown Solicitor has a role to play should an agency go down that particular path.

I have no evidence that that particular Treasurer's Instruction hasn't been followed. I am happy to refer that aspect of the question to my hardworking colleague the Minister for Health, and I am sure he can bring back an answer on notice if the Instruction hasn't been followed. Certainly, I have no evidence that the Instruction has not been followed. If the Hon. Ms Bonaros has evidence it has not been followed, I am happy to receive that and take the issue up with not only the responsible minister but also the agency as well.