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Legislative Council - Fifty-First Parliament, Third Session (51-3)
2008-11-11 Daily Xml
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GOVERNMENT CONTRACTS, PROBITY

The Hon. R.I. LUCAS (15:24): My question is to the Leader of the Government. What are the probity guidelines that apply to minister Holloway, the Leader of the Government, or any other Rann government minister, relating to processes for shortlisting bidders for major government contracts (such as the desalination contract, for example)? Do those probity guidelines allow the minister, or any other Rann government minister, to attend Labor Party fundraising functions organised by Labor's fundraising arm, South Australian Progressive Business, and paid for and hosted by a company associated with one of the bidders for the government contract?

The Hon. P. HOLLOWAY (Minister for Mineral Resources Development, Minister for Urban Development and Planning, Minister for Small Business) (15:24): In relation to this important matter, there are, of course, protocols in place for any upcoming PPP projects. The Crown Solicitor has advised that all contact with potential bidders and their advisers should be clearly and consistently managed. The aim is to provide clear, consistent information to each potential bidder. The advice is to encourage fair competition in the bidding process and, accordingly, both maximise the commercial outcome to the state and minimise the legal risk of litigation over the process.

The protocols are that no minister or ministerial staff—apart from the Deputy Premier who, of course, and as I pointed out when the Hon. Rob Lucas last asked this question, has carriage of these matters in a ministerial sense—should meet with any potential bidder or adviser to a bidder in connection with any PPP-related issue, nor discuss a PPP project directly or indirectly with any bidder or adviser to a bidder.

Where a minister wishes to conduct a fact-finding process concerning existing PPPs, it is recommended that he or she consult with the Premier for guidelines to assist in minimising risk. If approached in a public forum or another context, such ministers and ministerial staff should politely thank the person for their interest and refer all inquiries either to the Premier or, preferably, to the director of the respective project. If the party is insistent on discussing the matter, it can be emphasised to that party that the project director is best placed with more information to answer any queries. It is important from a probity point of view that the information come from a single source. I note that any genuine bidder should understand and accept this.

The Ministerial Code of Conduct also applies and, subject to that code, hospitality from a potential bidder or their advisor may be accepted. However, on these occasions great care should be taken to ensure that there is no discussion on any aspect of the project. The Ministerial Code of Conduct does not prevent a minister from accepting moderate and occasional acts of hospitality, provided the minister first satisfies himself or herself that, in accepting the hospitality, ministerial independence will not be or appear to be compromised in any way. That assessment should take into consideration the sensitivity of the PPP bidding process and the nature and circumstances of the hospitality.

There is no prohibition on attending a function held for another purpose at which a potential bidder or their adviser happen to be present. However, it is important that any aspect of the PPP not be discussed with the bidder or adviser. In anticipating a supplementary question, I certainly have abided by those guidelines and have not discussed anything in relation to the government's PPPs at any fundraiser or other event; nor have I been approached to do so.

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