State Development Department

The Hon. R.I. LUCAS (16:24): I seek leave to make an explanation before asking the Minister for Employment a question about the new Department of State Development.

Leave granted.

The Hon. R.I. LUCAS: The Premier in the last 24 hours announced the merger of two former departments (DMITRE and DFEEST). He also is reported in the media as indicating that a new chief executive officer would be appointed, I assume after the position has been duly advertised.

Under the former arrangements, there was a chief executive officer of DMITRE, Mr Geoff Knight, who has a five-year contract which does not expire until 21 October 2017. He is employed at a total employment cost of $374,000 per year, according to his contract, which we saw in January of this year. There was also a chief executive officer for DFEEST, Mr Ray Garrand, who people would be familiar with as a former Labor Party staffer and the former adviser on State Bank issues to Mr John Bannon. He has a three-year contract, which expires on 10 August 2014. My questions are:

1. Can the minister indicate whether the services of Mr Knight and Mr Garrand will be terminated? If they are to be terminated, will the minister take on notice what will be the termination payments to be made available to those two gentlemen?

2. If the services of Mr Knight and Mr Garrand are not to be terminated, what positions will the government make available to Mr Knight and Mr Garrand?

The Hon. G.E. GAGO (Minister for Employment, Higher Education and Skills, Minister for Science and Information Economy, Minister for the Status of Women, Minister for Business Services and Consumers) (16:26): I thank the honourable member for his important questions. Indeed, an announcement was made yesterday in relation to DFEEST and DMITRE being amalgamated to form one new Department of State Development; this is in line with our election commitment.

The new department, as announced, will drive and leverage growth in the economy, administer our job plans, coordinate the government's engagement with small to medium-size businesses, foster innovation and growth in investment and trade, and also bring together responsibility for skills, employment and science.

The amalgamation of the two departments will create, we believe, a stronger interface between government and business and will help drive future economic growth and help us to transform the economy. The new department will case manage private sector projects and will work to identify and remove barriers in job creation, such as removing red tape or considering a case from the Job Acceleration Fund. It has been announced that the acting chief executive of this new department will be Mr Raymond Garrand while the future chief executive positions of that department are being considered.

In relation to the details the honourable member has raised, my understanding is that those matters are still under consideration and that discussions are still taking place and that those details have yet to be finalised.