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House of Assembly - Fifty-Second Parliament, Second Session (52-2)
2012-05-16 Daily Xml
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BUS CONTRACTS

Ms CHAPMAN (Bragg) (15:01): My question is again to the Minister for Transport Services. Did the incentive payments to bus contractors for the March quarter exceed the $218,000 in fines announced two weeks ago by the minister?

The Hon. C.C. FOX (Bright—Minister for Transport Services) (15:02): May I ask for a point of clarification there within the premise of the questioning? Member for Bragg, when you say 'incentive payments', precisely what payments are you referring to?

Ms CHAPMAN: I am happy to provide an explanation. The Chief Executive of the Department of Transport, Mr Rod Hook—and I think the minister understands who he is—has provided a letter to the opposition, which the minister is aware of, which confirms that there is an 8 per cent bonus payment—

The Hon. C.C. Fox interjecting:

Ms CHAPMAN: I am using his words, Madam Speaker. There is an 8 per cent bonus payment which is payable upon the validation of tickets. It is a formula that applies to 8 per cent of the validated tickets, as per the advice received from Mr Rod Hook. That is what I am talking about.

The SPEAKER: Thank you.

Ms CHAPMAN: Is the payment that was made in the March quarter for the bonus payment for the validation of tickets, that they are entitled to under the contract, greater than the $218,000 fine they received?

The Hon. C.C. FOX: The member for Bragg repeatedly refers to bonuses—indeed, as do some of her staffers—in attempts to make the public believe that the government is throwing money at contractors. I, and indeed Mr Rod Hook (who the honourable member has mentioned), have tried to arm her with the facts but the member for Bragg does not seem to want to know them.

My office arranged a briefing at very short notice, as it was occurring with the Hon. Dennis Hood from the other place, and Rod Hook again explained this system to her at length. Again, and for the record, the 8 per cent validation payment forms part of the larger contract and essentially means that the government holds back 8 per cent of the contracted expected payments and pays them separately to ensure that the contractor does the right thing. It is not a bonus. It makes sure—

Ms Chapman: How much?

The SPEAKER: Order! The member for Bragg, order!

The Hon. C.C. FOX: It makes sure that concession payments are only paid appropriately and that people pay for their fares. The member for Bragg has been informed about this by the chief executive and, should she seek to do so, I would be very happy to arrange yet another briefing.

Members interjecting:

The SPEAKER: Order!

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