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Legislative Council - Fifty-First Parliament, Third Session (51-3)
2008-11-25 Daily Xml
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LOCAL GOVERNMENT CONTRACTS

The Hon. R.I. LUCAS (15:05): I seek leave to make a brief explanation prior to asking the Minister for Local Government Relations a question about local government contracts.

Leave granted.

The Hon. R.I. LUCAS: In the last sitting week I asked a series of questions of the Leader of the Government on probity guidelines the government had applied during major contract negotiations, such as the now $1.4 billion desalination project. To summarise the leader's responses, he made clear that in his view he believed that strict probity guidelines applied to all cabinet ministers of the Rann government and to other officers as well. In part, he described the protocols outlined by the Crown Solicitor to him and to all cabinet ministers, which requires, in part:

Protocols are that no minister or ministerial staff 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.

He then went on to outline some exceptions in relation to fact finding processes if a minister was going on a fact finding mission or, if a minister was approached in a public place, how that minister should handle that situation. The leader also indicated that the guidelines he was referring to in the PPP projects also related to major government contracts such as the desalination project.

On 22 September this year, Premier Rann himself announced that cabinet had approved three successful short listed bidders for the desalination project. One of those companies was named Addwater, and it comprises two companies—Veolia Water and John Holland. I am advised that on 29 August this year—about one month prior to cabinet's decision—minister Gago attended, as the featured guest, a major fundraising lunch organised by Labor's fundraising arm, South Australian Progressive Business, which charged attendees $1,500 per person and raised a significant amount of money for the Labor Party for the next election. The host of that particular function was a company associated with Veolia Water, one of the successful short listed bidders for the desalination project. My questions are as follows:

1. Does the minister accept that it raises the perception of unfairness to other bidding companies for her to be using a company associated with a bidding company to raise large sums of money for the Labor Party during a bidding process for a $1.4 billion contract?

2. Does the minister accept that her actions constitute a breach of the probity guidelines required of her as a Labor minister, and as outlined by the Leader of the Government two weeks ago and, if not, why not?

The Hon. G.E. GAGO (Minister for State/Local Government Relations, Minister for the Status of Women, Minister for Consumer Affairs, Minister for Government Enterprises, Minister Assisting the Minister for Transport, Infrastructure and Energy) (15:08): I would not even recall who attended that function and, certainly in terms of the probity guidelines, I have not discussed with any partner, potential partner or bidder, either directly or indirectly, matters relating to that development. The answer to the question is that I am not in breach of those guidelines; I adhere to them most strictly, and clearly there has not been any breach.

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