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Legislative Council - Fifty-Second Parliament, First Session (52-1)
2011-03-08 Daily Xml
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HEALTH SERVICES CHARITABLE GIFTS BILL

Second Reading

Adjourned debate on second reading (resumed on motion).

The Hon. CARMEL ZOLLO (20:28): I place on the record my congratulations to the Minister for Health in the other place for bringing this legislation to the parliament. The Commissioners of Charitable Funds is an area that I have kept an interest in since the Statutory Authorities Review Committee inquiry in 1998.

In my earlier years in the parliament, whilst in opposition, I had the pleasure of serving on the Statutory Authorities Review Committee, along with the Hon. John Dawkins. I believe we are the only two members in our chamber from that particular time of the committee. It was the recommendation of that committee, following an inquiry into the Commissioners of Charitable Funds, that the commissioners be wound up.

That there are two of us in this chamber from that original committee is not surprising, but what is surprising is that one of the commissioners at that time is now one of our colleagues in this place, the Hon. John Darley. At this stage, I quickly hasten to add that the committee found that there was no question that the commissioners themselves were doing anything other than an excellent job.

The decision to recommend that the CCF be wound up was a unanimous one at the time and ultimately reflected the view that there had been enormous changes to the manner in which funds to public health institutions were gifted and then subsequently invested, along with changes to the institutions themselves. It was certainly the view that there was some ambiguity and confusion because of changed circumstances, if for no other reason than the fact that the original act first came into being in 1875.

I am pleased to see this bill before us. The bill maintains the independent decision-making powers of the commissioners. I will not attempt to reiterate the minister's second reading speech, but I note that what the legislation before us does is to recognise the importance of the entity, as well as widening the powers of the board and improving its governance and the use of current terminology.

As stated by the minister, whilst the functions and responsibilities are broadly consistent with those that the commissioners currently undertake, for the first time there will be provisions that clearly describe the functions and responsibilities of the board. I am pleased to see the issues raised in the inquiry all those years ago are addressed. I remember that one of the issues identified at the time of the inquiry was the manner in which money gifted to country hospitals is dealt with. Whilst it is the government's intention that the act before us apply to all public hospitals, there will be some exceptions.

I understand the health advisory councils and their local country hospital sites will be the main exception, consistent with the commitment to people in country regions of South Australia that the health advisory councils established for those hospitals would retain control of local assets, including any donations to their local hospital. The government specifically precludes health advisory councils from being proclaimed public health entities and the property they hold on trust from being vested with the Health Services Charitable Gifts Board; that is proposed to be established by the bill. Circumstances where the health advisory councils prefer to transfer the property to the board are enabled in the bill.

I would also like to make mention of a couple of other important improvements: firstly, the enabling of the commissioners to act as trustees where they will have the same responsibilities that are now required of any other trustee under the Trustee Act 1936. The bill gives, as an example, the Helpmann Family Foundation in which the commissioners are co-named to be actively involved, but at the moment they are precluded from undertaking those duties because the current act does not have such a provision.

Whilst the current act enables the commissioners to apply a gift held on trust for a particular hospital to a more general one of being applied for the benefit of that hospital, the bill proposes a widening of those powers as sought by the commissioners. However, the legislation also requires the board to consider the intent of the donor, as far as can be reasonably ascertained, in order to ensure that the application of the funds is in a manner most likely to fulfil the intention of that donor.

The bill also reflects the fact that a considerable part of the charitable assets are funds for health and medical research and that the future focus of those funds for research will be taken up by the South Australian Health and Medical Research Institute as opposed to individual hospitals. So, as to be expected, the SAHMRI will be a prescribed body, and commissioners will also be given the option of applying those funds to SAHMRI where it is believed that this will best achieve the health outcomes that a donor may have intended.

Whilst always wishing to respect the wishes of donors, the bill states that the board will have the capacity and the flexibility to apply funds where it believes there is better research infrastructure and the hoped-for health benefits for patients can be best achieved.

In recognising the limitation on the current board in relation to its investment powers, this legislation will also allow the board to invest in the sharemarket, with the added support in its decision-making of a newly established investment advisory committee. I am pleased to see that it will have at least a representative from the Department of Treasury and Finance. It is clearly important that the generosity of people is well respected and that they can have trust in those who are the decision makers. Even with all of the best intentions and advice still fresh in our minds of the unfortunate experience of the global financial crisis, I think all agree that the more safeguards that are put in place the better.

I believe that, whilst the committee I then served on recommended the abolition of the Commissioners of Charitable Funds, I nonetheless feel that the spirit of this legislation before us captures the concerns that were expressed during that inquiry. I say that, given the changes that have occurred since 1998, whether they be in the governance and size of our health institutions, the financial market, different research facilities and even the manner in which medical research institutions attract their funding. I believe the deficiencies that were raised in the inquiry have been addressed.

The bill before us deals with not just the widening of the powers of the commissioners but, just as importantly, the clarification and improvement in the management of the existing act. We still have the board acting independently and not being compelled in its decisions by any person or body, including the government, as well as the government recognising its responsibility, with the bill ensuring that governmental role. So, for all those reasons I am pleased to add my support to this legislation.

Debate adjourned on motion of Mr Gazzola.


At 20:37 the council adjourned until 9 March 2011 at 14:15.


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