Page 2059 - Week 07 - Thursday, 17 June 1993
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We need to go back to, perhaps, 1990, when John Ford and Associates reported. Mr Ford was a former Commonwealth Government Actuary and was well known to a lot of people here. He sat on various things like the NRMA Third Party Premiums Advisory Committee. On page 10 of his report in 1990 Mr Ford said:
If there was a very large reduction below 2 per cent in contribution rate then a future increase would naturally be required more quickly than if the reduction was more modest. My preference would be for a contribution rate of 1.5 per cent (including an assumed .25 per cent levy).
He was assuming a 0.25 per cent levy as the cost of the training scheme. I quote again:
Such a rate should be able to be maintained for many years into the future.
Mr Ford made those comments in November 1990. The next piece of history, Madam Speaker, is a letter to Mr Kaine, the then Chief Minister, from the chairman of the Long Service Leave Board, Mr Bob Yeomans. Mr Yeomans wrote to Mr Kaine and said a lot of things.
Mr Kaine: And it was all good advice, too.
MR DE DOMENICO: It was welcome advice and very good advice. I will table these documents later. Mr Yeomans said:
The effect of both the reduction in the general levy and the elimination of the levy on apprentices wages would reduce the Board's income by $1.315m per annum. However, the Board has substantial surplus reserves which arose due to:
. the 2.5 per cent levy having been set at a very conservative level when the scheme began in 1981 ...
. the prevailing high interest rates in recent years had a beneficial effect on the Board's cash investments; and
. the tight control which the Board has always applied to its administrative overheads.
He went on to say:
It could be expected that the $1.315m which the Board will be forgoing would be returned to the community in the form of reduced building costs and higher employment levels in the building and construction industry.
When you have made your decision on the Board's recommendations the Board will write to individual employers and inform them of that decision.
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