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House of Assembly - Fifty-Second Parliament, Second Session (52-2)
2012-05-17 Daily Xml
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BUS CONTRACTS

Ms CHAPMAN (Bragg) (14:52): My question is to the Minister for Transport Services. Why is it that when the minister calls the bonus payments to a bus contractor a 'bonus', they are a bonus, but when the opposition calls the bonus payments to bus contractors a 'bonus', they are not a bonus? Yesterday in the house when I referred to the 8 per cent ticket validation bonus that is paid to bus contractors, the minister said, 'It is not a bonus.' However, the minister stated on talkback radio on 16 April, '...when the operator correctly sells tickets to people then they receive...an 8 per cent bonus'.

Members interjecting:

The SPEAKER: Order!

The Hon. C.C. FOX (Bright—Minister for Transport Services) (14:53): I am glad that we are going back in time in this way. Yesterday in the house, and this is part of my response to your question, the member for Bragg said to me:

The Chief Executive of the Department of Transport, Mr Rod Hook—and I think the minister understands who he is [yes]—has provided a letter to the opposition, which the minister is aware of, which confirms that there is an 8 per cent bonus payment.

I have this letter in front of me, and I have read the letter. It is true that I wear spectacles but I cannot see the word 'bonus'. In fact, if you like, I will read that little bit—

Members interjecting:

The SPEAKER: Order!

Members interjecting:

The SPEAKER: Order!

The Hon. C.C. FOX: Madam Speaker, do I have permission to quote from a letter? Can I do that?

The SPEAKER: Yes.

The Hon. C.C. FOX: Thank you. 'Patronage Incentives'—this is a letter to the member for Bragg from the chief executive:

The level of patronage adjustments paid during contract 2005-2011 per year and per contract comprises two components. The first is the payment which represents 8 per cent of validations. This arrangement is reflected in the contract bid price from each contractor and, as explained, is consistent with the arrangements in the current contract.

Bear with me, Madam Speaker; it gets more interesting:

The second is the patronage adjustment which is based on increases in the number of validations above the base year of 2005. These are shown in the tables below. These patronage adjustments have been discontinued in the new contract.

At no time in this letter did the chief executive refer to bonuses—

Members interjecting:

The SPEAKER: Order!

The Hon. C.C. FOX: —as the member for Bragg asserted in her question yesterday. What that tells me is that quite frequently the premise of these questions is questionable.

Members interjecting:

The SPEAKER: Order!

The Hon. C.C. FOX: The member for Bragg repeatedly refers to bonuses in an attempt to make the public believe that the government is throwing money at public contractors.

Ms Chapman interjecting:

The SPEAKER: Member for Bragg, order!

The Hon. C.C. FOX: Madam Speaker, I have tried time and time again to arm the member for Bragg with the correct information. I have arranged briefings for the member for Bragg. I have sat here and I have told the truth, I have told it how it is and still the information does not seem to go in.

I will say it again, for the record. The 8 per cent validation payment forms part of the larger contract, and it essentially means that the government holds back 8 per cent of the contractor's expected payments and pays them separately to ensure the contractor does the right thing.

Members interjecting:

The SPEAKER: Order!

The Hon. C.C. FOX: Carrying on, that is 8 per cent of each fare. So that is the average fare of how many people a particular company has carried; 8 per cent. A percentage is a proportion in relation to the whole. I hope that makes the percentage concept quite clear to the member for Bragg.

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