Page 3305 - Week 12 - Thursday, 19 November 1992
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MINISTER FOR URBAN SERVICES
LEGISLATIVE ASSEMBLY QUESTION
QUESTION NO. 426
Forestry Trust Account
Mr Westende - asked the Minister for Urban Services:
In relation to Appendix H of the Financial Statements of the Department of Urban Services Annual Report 1991-92 in which reference is made under ACT Forestry Trust to Abnormal Items (Note 6) could you provide detailed explanation of the following items: (a) increase (writeback) provision for legal claims; (b) write off bad debts; and (c) office relocation.
Mr Connolly - the answer to the Members question is as follows:
(a) Prior to 1984 ACT Forests self insured for workers compensation for logging and silvicultural contractors through the operation of a 50c per tonne surcharge on sawn log delivered to the mills. As a result of that system there are currently three injury claims being met by ACT Forests. The increase in the provision has been made in recognition that the claims are payable for life (male life expectancy 73 years) rather than to age 65. All contracts since 1984 have required contractors to take out workers compensation cover to the extent required by law, public liability cover and personal accident insurance if the contract is with an individual and not a company.
(b) The bad debt write off relates to an expectation and subsequent billing to the Conservation and Agriculture Bureau for the reimbursement of funds expended in 1990-92 by ACT Forests for the public use of ACT Forests. Costs on the function are incurred through the Forestry Trust Account and reimbursed by the Environment and Conservation Bureau. The shortfall in funding ($136,375) that the Bureau was unable to provide was met from commercial operations and it was subsequently agreed that this amount be written off the books. As can be seen from the 1991-92 Financial Statements (Note 3) the extent to which ACT Forests have supplemented appropriation funds has been specifically identified.
(c) One of the recommendations of the 1991 review of ACT Forests was that ACT Forests move to a centralised management and operations structure. As a result ACT Forests headquarters moved from Tuggeranong Homeworld to Stromlo in February 1992. Subsequent proposals will see the consolidation of all operations at Stromlo within a single depot with consequent savings and improved efficiency. The costs of relocation in the 1991-92 Financial Statements cover the relocation and renovation of an office from the Uriarra Depot for use as the Planning Office, provision of services and power and telephones.
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