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House of Assembly - Fifty-Second Parliament, First Session (52-1)
2011-06-22 Daily Xml
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Parliamentary Committees

ECONOMIC AND FINANCE COMMITTEE: EMERGENCY SERVICES LEVY 2011-12

The Hon. M.J. WRIGHT (Lee) (11:04): I move:

That the 74th report of the committee, entitled Emergency Services Levy 2011-12, be noted.

The Economic and Finance Committee has examined the minister's determinations in respect of the Emergency Services Levy for the financial year 2011-12. Section 10(5) of the Emergency Services Funding Act 1998 requires that the minister must refer to the Economic and Finance Committee a written statement setting out determinations that the minister proposes to make in respect of the emergency services levy for the relevant financial year. Section 10(4) of the act requires these determinations be made in respect of:

the amount that, in the minister's opinion, needs to be raised by means of the levy on property to fund emergency services;

the amounts to be expended for various kinds of emergency services; and

as far as practicable, the extent to which the various parts of the state will benefit from the application of that amount.

Pursuant to section 10(5a) of the act, the Economic and Finance Committee must inquire into, consider and report on the minister's statement within 21 days after it is referred to the committee. The committee has fulfilled its obligations under the act. The committee met with witnesses from the departments of Treasury and Finance, SAFECOM, the Country Fire Service, Metropolitan Fire Service and the State Emergency Service on 2 June to hear evidence on the proposed levy for 2011-12.

The committee notes the total expenditure on emergency services for 2011-12 is projected to be $225.3 million. There will be no increase in levy rates, either for owners of fixed property or for owners of motor vehicles and vessels, in 2011-12. The committee notes total expenditure for 2010-11 is expected to exceed the original estimates by $8.3 million, reflecting remission and pensioner concession costs on fixed property, exceeding budget by $4.7 million, mainly due to higher than expected growth in property values, and contributions from fixed property owners exceeding budget by $3.6 million, also mainly due to higher than expected growth in property values.

The committee notes cash balances in the Community Emergency Services Fund are expected to reach $8.8 million by 30 June 2011. The committee notes that the 2011-12 target expenditure of $225.3 million on emergency services is made up of the following components:

the ESL inclusive of remissions will fund $223.2 million. Private owners of property are expected to contribute $126.9 million, with the balance of $96.4 million being met by the government;

interest earnings and revenue from the sale of certificates will fund an estimated $1.9 million; and

the balance of $0.2 million will be funded via a run down in the CESF cash balance.

The Economic and Finance Committee has maintained an interest in the collection costs of the Emergency Services Levy and has been vigilant, year after year, in questioning the department on this matter.

The committee was told that the collection of the Emergency Services Levy will be integrated into the new RISTEC IT system developed within RevenueSA. As a result, payroll tax, land tax, stamp duty and the Emergency Services Levy will be covered by the same system, rather than the levy having its own dedicated IT platform. The committee was told that moving to a single system, with only one set of costs, will provide further and ongoing efficiencies with respect to collecting the levy.

I would like to take this opportunity to thank all members of the committee and departmental representatives, who have worked together to assist the committee in fulfilling its statutory obligation in a timely manner. Given the above, and pursuant to section 6 of the Parliamentary Committees Act 1991, the Economic and Finance Committee recommends to parliament that it note this report.

Mr GOLDSWORTHY (Kavel) (11:08): I am pleased to rise in support of the motion of the Hon. M.J. Wright that the 74th report of the Economic and Finance Committee, entitled Emergency Services Levy 2011-12, be noted. As I said, I am pleased to speak to the motion on this side of the house, being a member of the Economic and Finance Committee.

As outlined by the Hon. Mr Wright, the report has highlighted that the committee was advised that the total expenditure on emergency services is projected to be $225.3 million in 2011-12, of which, as previously highlighted by Mr Wright, the Emergency Services Levy, inclusive of remissions, will fund $223.2 million. Private owners of property—that is, land, buildings and motor vehicles—are expected to contribute $126.9 million, with a balance of $96.4 million being met by the government.

Second point: interest earnings and revenue from the sale of certificates showing the emergency services levy status of individual properties will fund an estimated $1.9 million, and the balance of $0.2 million will be funded through a run-down in the Community Emergency Services Fund cash balance.

There has been a table provided in the report that members will be able to view themselves outlining the estimated outcome of the 2010-11 year to the proposed table of the 2011-12 year There is a net increase in total revenue comparing the 2010-11 year of $222.4 million to that of the 2011-12 year of $225.3 million and, even though the levy is going to raise $225.1 million, there is a $3.3 million decrease in the CESF cash balance to result in that final total of $225.3 million proposed for the 2011-12 year.

As I just outlined, the 2011-12 target expenditure of $225.3 million is at $2.9 million higher than the estimated outcome, and that is mainly due to the ongoing funding of the Prepare. Act. Survive. initiative that we know that the CFS rolls out prior to and during the bushfire season. I just want to focus on section 28(4)(a) of the act and on where the proposed payments are to be made.

The South Australian Country Fire Service is to receive $64.4 million. That is a marginal increase from the previous year. It is the same with the Metropolitan Fire Service (MFS), $99.9 million. This is all obviously reflected in this year's budget that has just been brought down. The SES is to receive $13.4 million; Surf Life Saving, $1.7 million; volunteer marine rescue organisations, $0.6 million; SA Police, $19.3 million; and other organisations (SA Ambulance, Department for Environment and Natural Resources, State Rescue Helicopter, Shark Patrol and others) totalling, by my calculations, $5.3 million.

As usual, we had a significant number of public servants: the chief officers of the three emergency services (the MFS, the CFS and the SES) all come with their respective officers from those agencies. We also had officers from Treasury, the Under Treasurer and those public servants come along as usual where the committee is outnumbered by about three to one in relation to the members of the committee compared with the bureaucrats. In terms of their providing evidence to the committee in relation to the Emergency Services Levy, there have been a number of issues that were highlighted through those meetings that are 'of interest'—let me put it that way.

All in all, members on this side of the house are relatively satisfied with the report so we are prepared to support the motion moved by the member for Lee.

Motion carried.

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