Page 4603 - Week 15 - Wednesday, 15 December 1993
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I then suggested to Mr Berry:
Why don't you reduce the levy in the meantime?
Mr Berry said:
Because I have given an undertaking ...
I said:
To whom?
Mr Berry said:
To one or two workers in the industry.
I said:
Was it to the unions?
He said:
Of course, because they are parties to this.
I suggested:
They don't pay the levy.
So there it is in the Minister's own words: A promise to one or two people in the union movement justifies the collection of millions of dollars more than necessary, to sit in a fund doing nothing.
Let us look at what happens in other States and Territories. In New South Wales the levy is zero because New South Wales also became overfunded; Mr Fahey realised this and saw more advantages in returning the money to the industry to employ people and to the community in reduced building costs. In South Australia the levy is 1.5 per cent; in Western Australia, 0.7 per cent; in Victoria, 0.5 per cent; in Tasmania, 2 per cent; and Queensland has just reduced its levy from 0.5 per cent to 0.4 per cent. The ACT is 2.5 per cent, 100 per cent overfunded, and we still do nothing.
It is interesting that, for the first time, the Estimates Committee this year called on the Long Service Leave Board to come before the Estimates Committee, and they submitted their figures. Under "Income", the board estimated that this year it will collect $1.5m from contributions. Guess what? The board said that their estimation is based on a contribution of 1.5 per cent. The board itself said to the Estimates Committee, "We estimate that next year we will be collecting this levy at a rate of 1.5 per cent". Why? Because the board had been given an undertaking that it would be reduced. It has even calculated its figures on this undertaking. Yet still the Minister has failed to deliver. There is also an expenditure amount of $70,000 for training, calculated for four months only, with the comment, "To be replaced by a levy on building permits". This is the Long Service Leave Board at the Estimates Committee in October this year.
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