Page 2369 - Week 08 - Thursday, 7 June 1990
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(9) Does the Minister agree that if the hourly rate was increased from $38 to $4£s income would cover expenditure. If not, why not.
(10) Is the Minister prepared to approve this increase in the hourly rate mentioned above. If not, why nest.
(11) Will the Minister give the Special Duty Vehicle Workshop a chance to prove it can compete efficiently with private workshops or does he simply plan to privatise the Workshop no matter what.
Mr Duby - the answer to the Members question is as follows:
(1) Yes. The Chief Minister and I were given a copy of the document when we met with the unions on 22 May 1990.
(2) No. Before any meaningful comparison could be made there would need to be a more detailed analysis of the composition of the charges and the work performed.
(3) While the union representatives at the meeting of
22 May 1990 made general statements to this effect, I am not
aware of any specific claims in this regard.
(4) I am aware that the Finance area of ACTION provided some information on costings at the request of Workshop members. The contents of page 4 I understand was based on that data.
ACTIONs projection of vehicles costs/parts and consumable is based on actual costs recorded in accordance with normal commercial accounting practices and costing systems. I am unable to comment on the accuracy of the unions figures as those have not been provided for scrutiny. It appears however that they are not significantly at variance from ACTIONS records.
(5) There is no evidence on which to base such an assumption.
(G) Yes. A figure of $889,100 was provided by ACTION but not included in the table.
(7). I am unable to comment on the validity of the unions figures as they have not been provided for scrutiny.
(8) No. ACTIONS records do not support such a projection.
(9) No. An increase in the hourly rate from $39 to $48 would result in an estimated increase in revenue of only $90,000. This would be insufficient to offset the projected loss.
(10) Consideration of what could be an appropriate hourly rate will be undertaken in the context of the Governments consideration of the future of the Special Duty Workshop.
(11) As indicated in (10), the future of the Workshop is under review by the Government in consultation with the appropriate unions.
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