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Legislative Assembly for the ACT: 2003 Week 5 Hansard (7 May) . . Page.. 1664 ..

MR WOOD (continuing):

Mr Pratt made a very interesting comment. He referred to-and I will quote the three key words-the "doggedly bureaucratic approach"of the Chief Minister's Department. Do you know what that means? That means that the Chief Minister's Department is in there protecting the interests of the ACT and is not prepared to roll over on this issue. That is what it means. I like this "doggedly bureaucratic approach"because it is representing the people that you ought to be representing.

Mr Pratt says that there is a breakdown in communication. Well, one side is saying, "Sign here and that's it."Let us go back in history a bit. Negotiations go back a long time. They pre-exist this government; and, indeed, they pre-exist self-government. Negotiations have been ongoing since self-government.

Recent changes to financial management and audit legislation at the federal level necessitate conclusion of the negotiations to permit further payments. We are anxious to do that, protecting our interests at the same time. The ACT Fire Brigade's functions have always included the protection of all life and property in the ACT, including Commonwealth, and the provision of services equivalent to those found in other jurisdictions. Delivery of ACT fire services is funded from a single budget that has never distinguished between the nature and ownership of the property or who was requiring protection.

Prior to self-government, arrangements were in place to provide funding to the ACT Fire Brigade based on a formula of one-third municipal, one-third territorial and one-third national or Commonwealth. These proportions were used for internal Commonwealth financial purposes. At self-government, two-thirds of the funding base was transferred to the ACT and the Commonwealth retained the one-third of the fire budget nationally attributed for Commonwealth purposes. This one-third of the budget was then paid annually to the ACT. At self-government, DASETT, a federal department, was responsible for on-passing the Commonwealth payment.

In 1991-02 this changed to the Department of Administrative Services. Following that transfer, DAS commenced discussions with the ACT about a proposed MOU to cover funding along similar lines to the arrangements the Commonwealth has with other states.

In 1992 DAS indicated that it was not in a position to continue negotiations for an MOU and, instead, opted to continue annual payments, pending further developments. The Commonwealth continued those annual payments, which increased from $4.5 million in 1989-90 to $5.8 million in 1999-2000, and that was through the application of an agreed CPI inflate.

At a meeting on 9 March 1999 involving representatives from the Department of Finance and Administration, the Department of Defence and the ACT Emergency Services Bureau, the ACT was advised that the Commonwealth wished to reduce its payments to the ACT Fire Brigade budget. That was in March 1999. Correspondence between the Commonwealth and the ACT followed and negotiations re-opened in April 2001. However, no agreement was reached at that time or since on the amount of the Commonwealth contribution.

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