Mr HATTON - 1995-11-29
Mr HATTON (Education and Training): Mr Speaker, yesterday, I was asked questions by the members for Wanguri and Barkly in relation to the, frankly, very boring saga of Modular Medical Products, and specifically the purchase of wheelchairs by the Department of Education. I would like to provide answers to those questions.
The first question the member for Wanguri asked was: `Did the Auditor-General write to the departmental secretary advising him of this list of failings?' The answer is that the purchase of wheelchairs was investigated by the Auditor-General's office in February 1993. The findings of this investigation were reported to the secretary by the Auditor-General in April 1993.
The second question was: `Who was the minister and the secretary at the time these failings were identified?' Hon Shane Stone was the Minister for Education and Training, and Mr Geoff Spring was the secretary of the department when the failures in procedures were initially identified and a certificate of exemption issued retrospectively. A member of the Auditor-General's staff had meetings with staff of the Department of Education prior to the Auditor-General writing to the secretary of the department on 20 April 1993. The office of the Auditor-General sent a memorandum to the Department of Education in December 1992, advising that it was looking for documentation regarding the purchase of wheelchairs. At this time, Hon Fred Finch was the Minister for Education and Training, and Michael Fong was the secretary, Geoff Spring having left in October 1992 and the member for Leanyer having become Minister for Education and Training in November 1992.
The third question was: `Were any of these failures rectified?' A certificate of exemption was issued retrospectively for the purpose of creating an audit trail.
The member for Barkly asked firstly: `Was there any correspondence between the then secretary, Mr Geoff Spring, and the then minister, the member for Port Darwin, in relation to
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this purchase?' The answer is no. The member for Barkly asked, secondly: `Was there any notification by the then secretary, Mr Geoff Spring, to the then minister, the member for Port Darwin, in relation to this irregular purchase?' The answer is no.
Mr Bailey: He did it on his own?
Mr HATTON: As I said yesterday, talk about raking over old coals to try to generate a fire! It is extraordinary. This has been continuing for more than 2 years. There has been an inquiry by the PAC, questions and answers and debates. These arguments have been ongoing for 2 years over a purchase worth less than $50 000.
To place this in perspective, it arose from an Auditor-General's report. Yesterday, I made some comments in relation to what the Auditor-General said, and the member for Wanguri said that the Auditor-General did not make those comments. Let us read from the June 1993 Annual Report of the Auditor-General. In fact, he said:
Inadequacies were noted in procurement procedures for the acquisition of some equipment in June 1992 for an
amount of $49 980. In response, the department advised that `the action was taken during a busy period in
which financial year accounts were being finalised. Procurement procedures, including the need to issue a
certificate of exemption, were initially overlooked but this was remedied immediately the omission was noted.
Steps have been taken to ensure that the correct procedures will be observed'.
Thus, in June 1993, corrective action had been taken in relation to an event that had occurred in June 1992. That was reported by the Auditor-General. We have been arguing for 2 years about this purchase which cost $49 980, yet it was rectified in 1992-93. That is the fact of the matter. It is about time members opposite got off this case and allowed staff in the Department of Education ...
Mr Bailey: You do not like it, do you?
Mr HATTON: ... to get on with their main job, which is improving the quality of education in the Territory.
Mr SPEAKER: The Minister for Health Services.
Mr BAILEY: A point of order, Mr Speaker! Under standing order 57, I seek leave to make a personal explanation in response to the comments just made by the minister.
Mr SPEAKER: No. I called the Minister for Health Services first. You can make your personal explanation later.
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The first question the member for Wanguri asked was: `Did the Auditor-General write to the departmental secretary advising him of this list of failings?' The answer is that the purchase of wheelchairs was investigated by the Auditor-General's office in February 1993. The findings of this investigation were reported to the secretary by the Auditor-General in April 1993.
The second question was: `Who was the minister and the secretary at the time these failings were identified?' Hon Shane Stone was the Minister for Education and Training, and Mr Geoff Spring was the secretary of the department when the failures in procedures were initially identified and a certificate of exemption issued retrospectively. A member of the Auditor-General's staff had meetings with staff of the Department of Education prior to the Auditor-General writing to the secretary of the department on 20 April 1993. The office of the Auditor-General sent a memorandum to the Department of Education in December 1992, advising that it was looking for documentation regarding the purchase of wheelchairs. At this time, Hon Fred Finch was the Minister for Education and Training, and Michael Fong was the secretary, Geoff Spring having left in October 1992 and the member for Leanyer having become Minister for Education and Training in November 1992.
The third question was: `Were any of these failures rectified?' A certificate of exemption was issued retrospectively for the purpose of creating an audit trail.
The member for Barkly asked firstly: `Was there any correspondence between the then secretary, Mr Geoff Spring, and the then minister, the member for Port Darwin, in relation to
Page 1088
this purchase?' The answer is no. The member for Barkly asked, secondly: `Was there any notification by the then secretary, Mr Geoff Spring, to the then minister, the member for Port Darwin, in relation to this irregular purchase?' The answer is no.
Mr Bailey: He did it on his own?
Mr HATTON: As I said yesterday, talk about raking over old coals to try to generate a fire! It is extraordinary. This has been continuing for more than 2 years. There has been an inquiry by the PAC, questions and answers and debates. These arguments have been ongoing for 2 years over a purchase worth less than $50 000.
To place this in perspective, it arose from an Auditor-General's report. Yesterday, I made some comments in relation to what the Auditor-General said, and the member for Wanguri said that the Auditor-General did not make those comments. Let us read from the June 1993 Annual Report of the Auditor-General. In fact, he said:
Inadequacies were noted in procurement procedures for the acquisition of some equipment in June 1992 for an
amount of $49 980. In response, the department advised that `the action was taken during a busy period in
which financial year accounts were being finalised. Procurement procedures, including the need to issue a
certificate of exemption, were initially overlooked but this was remedied immediately the omission was noted.
Steps have been taken to ensure that the correct procedures will be observed'.
Thus, in June 1993, corrective action had been taken in relation to an event that had occurred in June 1992. That was reported by the Auditor-General. We have been arguing for 2 years about this purchase which cost $49 980, yet it was rectified in 1992-93. That is the fact of the matter. It is about time members opposite got off this case and allowed staff in the Department of Education ...
Mr Bailey: You do not like it, do you?
Mr HATTON: ... to get on with their main job, which is improving the quality of education in the Territory.
Mr SPEAKER: The Minister for Health Services.
Mr BAILEY: A point of order, Mr Speaker! Under standing order 57, I seek leave to make a personal explanation in response to the comments just made by the minister.
Mr SPEAKER: No. I called the Minister for Health Services first. You can make your personal explanation later.
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Last updated: 09 Aug 2016