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975 PARLIAMENT OF NEW SOUTH WALES __________ No. 76 __________ LEGISLATIVE COUNCIL QUESTIONS AND ANSWERS ____________________ SECOND SESSION OF THE FIFTY-FIRST PARLIAMENT ____________________ MONDAY 16 JUNE 1997 (The Questions and Answers Paper published for the first sitting day in each week will contain, by number and title, all unanswered questions, together with questions to which answers have been received on the previous sitting and any new questions. On subsequent days, new questions are printed, as are questions to which answers were received the previous day. Consequently the full text of any question will be printed only twice: when notice is given; and, when answered.) Notice given on date shown

QUESTIONS AND ANSWERS - parliament.nsw.gov.au · legislative council questions and answers monday 16 june 1997 977 6 may 1997 (paper no. 64) *485 transport—train noise—environmental

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975

PARLIAMENT OF NEW SOUTH WALES

__________

No. 76__________

LEGISLATIVE COUNCIL

QUESTIONS

AND

ANSWERS

____________________

SECOND SESSION OF THE FIFTY-FIRST PARLIAMENT____________________

MONDAY 16 JUNE 1997

(The Questions and Answers Paper published for the first sitting day in each week will contain, by numberand title, all unanswered questions, together with questions to which answers have been received on theprevious sitting and any new questions. On subsequent days, new questions are printed, as are questions towhich answers were received the previous day. Consequently the full text of any question will be printed onlytwice: when notice is given; and, when answered.)

Notice given on date shown

LEGISLATIVE COUNCIL QUESTIONS AND ANSWERSMonday 16 June 1997

976

Publication of Question Answer to be lodged by

Q&A No. 67 (including Questions Nos 495 and 496) 17 June 1997

Q&A No. 68 (including Questions Nos 497 to 504) 18 June 1997

Q&A No. 69 (including Questions Nos 505 to 508) 19 June 1997

Q&A No. 70 (including Questions Nos 509 to 511) 24 June 1997

Q&A No. 71 (including Questions Nos 512 to 514) 25 June 1997

Q&A No. 72 (including Question No. 515) 26 June 1997

Q&A No. 73 (including Questions Nos 516 and 517) 1 July 1997

Q&A No. 74 (including Question No. 518) 2 July 1997

Q&A No. 75 (Nil Questions) —

Q&A No. 76 (including Questions Nos 519 and 520) 21 July 1997

LEGISLATIVE COUNCIL QUESTIONS AND ANSWERSMonday 16 June 1997

977

6 MAY 1997

(Paper No. 64)

*485 TRANSPORT—TRAIN NOISE—ENVIRONMENTAL PROTECTION AUTHORITY GUIDELINES—MrJobling asked the Treasurer, Minister for Energy, Minister for State and Regional Development, MinisterAssisting the Premier, and Vice-President of the Executive Council representing the Minister for Transport,and Minister for Tourism—

(1) (a) Has the Environment Protection Authority (EPA) produced guidelines to be met for locomotives inNew South Wales in relation to acceptable noise and vibration?

(b) Does the contract for locomotive purchase or lease contain such guidelines and conditions ofcompliance which must be met before acceptance by the State Rail Authority (SRA)?

(c) Are allowable sound levels in built-up areas at roadway and railway lines to be measured inaccordance with AS2377?

(2) Under AS2377 for noise from railway lines:

(a) Are sound level readings required to be measured 5 metres out from the affected house?

(b) Is the maximum peak permissible 85 decibels?

(c) (i) Was this level increased to 89 decibels?

(ii) If so, when?

(d) Who was advised on this change and where was it advertised?

(e) Was the maximum peak permissible decibel rating increased to accommodate SRA requirementsgiven that the 82 and 90 Class cannot meet the set maximum?

(f) If not, why was an increase from 85 to 89 decibels authorised?

(g) (i) Did the SRA, by letter of 10 February 1992, say the 82 and 90 Class locomotives will berequired to operate on a licence from the EPA and commissioned strictly in accordance withthe Noise Control Act?

(ii) If so, why?

(h) Did the SRA, on 5 May 1997, state it will not accept locomotives unless they meet all the criteriaset out in the contract and that they must comply with the EPA guidelines?

(3) (a) How often are 81, 82 and 90 Class locomotives, operated on rail lines in the Newcastle and HunterValley localities, tested for noise and vibration compliance?

(b) What are the numbers of 81, 82 and 90 Class locomotives which operate on a regular basis in theNewcastle and Hunter Valley localities?

(c) What are the ages of these locomotives?

(d) Who carries out any testing of these locomotives for compliance with EPA or SRA environmentalpollution emissions?

LEGISLATIVE COUNCIL QUESTIONS AND ANSWERSMonday 16 June 1997

978

(e) Which class, if any, and what percentage of each class fail to meet accredited noise and vibrationmaximum permissible levels?

(f) How many locomotives of each class, regularly utilised in the Newcastle and Hunter Valley locality,are kept in service after recording a fail in noise and vibration tests?

(g) (i) By class; and

(ii) number of locomotives;

what was the time that locomotives failing the above tests were kept in service prior to rectificationin the financial years 1994/95, 1995/96 and 1996/97 to date?

Answer—

(1) (a) The EPA has produced guidelines which include target levels for noise from general rail operations.These guidelines do not specify noise levels for individual classes of locomotives.

(b) Each locomotive purchase or lease contract is slightly different. The contract for the lease ofFreightCorp’s latest locomotives, the 82 and 90 Class, stipulates a maximum noise level of87 dB(A) under stationary conditions, or compliance with EPA interim or regular licences for theoperation of locomotives.

(c) AS2377 applies to the measurement of external noise levels emanating from rail-bound vehiclessuch as locomotives. AS2377 does not apply to the measurement of allowable sound levels inresidential areas.

(2) (a) No. All distances quoted in AS2377 relate to distance from the centre of the rail track.

(b) AS2377 does not specify any peak decibel levels. It is an Australian Standard and as such does notprescribe levels, only measurement methods.

(c) (i) Not applicable.

(ii) Not applicable.

(d) Not applicable.

(e) No.

(f) The noise contract requirements were never increased to 89 dB(A).

(g) (i) Yes.

(ii) The 82 and 90 Class locomotives have always been operated in accordance with an EPAinterim or regular licence.

(h) I am advised by FreightCorp that, following a search of records, no correspondence of this datecould be found.

LEGISLATIVE COUNCIL QUESTIONS AND ANSWERSMonday 16 June 1997

979

(3) (a) There is no requirement to conduct continuing testing of individual locomotives. Nevertheless,pass-by testing of whole trains is conducted on a random basis, particularly in response tocommunity complaints.

Stationary testing of a number of the 82 and 90 Class locomotives was conducted upon completionof construction and again following subsequent modifications to determine typical noise levels forthe class.

(b) There are twenty-two 82 Class and twenty-nine 90 Class locomotives operating in the Newcastleand Hunter Valley localities on a regular basis. The 81 Class locomotives only operate in the HunterValley on rare occasions.

(c) The 81 Class locomotives are between 13 and 15 years old, while the 82 and 90 Class locomotivesare approximately 3 years old.

(d) Pass-by testing of trains is conducted by FreightCorp’s Environmental Services Unit or byindependent acoustic consultants. Stationary tests of the 82 and 90 Class locomotives are conductedby contractors to Clyde Engineering.

(e) All classes of locomotives required to meet EPA noise level guidelines do so.

(f) Not applicable.

(g) (i) Not applicable.

(ii) Not applicable.

*486 ENERGY—INTERLINK—Mr Jobling asked the Treasurer, Minister for Energy, Minister for State andRegional Development, Minister Assisting the Premier, and Vice-President of the Executive Council—

(1) (a) What is the existing interlink capacity between New South Wales and Victoria for electricitytransfer?

(b) Where are the interlinks situated?

(c) If more than one interlink exists, what are the individual capacities for each site?

(2) (a) In what year were the interlinks constructed and have any material upgrades or enhancements beenconcluded since initial construction?

(b) Who owns the actual interlink sites?

(c) Who is responsible for their maintenance?

(3) (a) Are there any proposals to increase the capacity of the electricity interlinks between New SouthWales and Victoria?

(b) When will any projected upgrade or increase in capacity be commenced and completed?

(c) What maximum capacity, per site, will any proposed increase achieve?

(d) Are there any specific conditions proposed in the National Competition Policy for energyinterchange across State boarders?

(e) What is the anticipated value to New South Wales of electricity in dollar value and technical outputin the next 12 months?

LEGISLATIVE COUNCIL QUESTIONS AND ANSWERSMonday 16 June 1997

980

(4) (a) Are there any other interlinks between New South Wales and States other than Victoria forelectricity?

(b) If so, where are they and what is the capacity of each individual site?

(c) (i) Are future links proposed?

(ii) If so, for which markets?

(d) What capacity is envisaged for any new interlinks?

(e) What timetable has been adopted for expansion of interlinks?

(f) What is the proposed cost in dollar value?

(g) What are the anticipated benefits from electricity sales of cross border links to States other thanVictoria?

Answer—

Explanatory Note:

Traditionally, within the power industry, power import and export capabilities have been specified acrosspower authority boundaries. With regard to all following answers, the Snowy Mountains Hydro-electricAuthority is included within the boundary of New South Wales.

For example, because the periods of peak power consumption in both New South Wales and Victoria oftencoincide, the transfers of power during such periods are often described as importing power from the Snowyby both New South Wales and Victoria. However, if referring strictly to the boundary between the States ofNew South Wales and Victoria, only Victoria is importing power from New South Wales, while in the State ofNew South Wales a power transfer north and west from the Snowy area is taking place.

Only the power transfer limits and descriptions of those assets associated with exchange of power across theNew South Wales-Victoria State borders are given.

(1) (a) The transfer capacity between New South Wales and Victoria is different for the two possibledirections of power flow due to different combinations of factors limiting the capacity.

The actual limit at any given time depends on a number of factors including system demand,generation patterns, the level of Victoria’s power export to South Australia, system voltage stabilityconsiderations and the maximum load carrying capacity of various transmissions lines.

For transfer from Victoria to New South Wales, the capacity is normally in the range 850 to1,100 MW.

For transfer from New South Wales to Victoria, the capacity is normally in the range 1,000 to1,500 MW.

(b) Taking transmission lines between the Snowy and (the rest of) New South Wales to be internal toNew South Wales, there are four main grid lines crossing the border as follows:

Buronga to Red Cliffs 220 kVJindera to Wodonga 330 kVMurray to Dederang (1) 330 kVMurray to Dederang (2) 330 kV

LEGISLATIVE COUNCIL QUESTIONS AND ANSWERSMonday 16 June 1997

981

(c) The continuous load carrying capacities of the circuits listed above are as follows:

Buronga to Red Cliffs 265 MWJindera to Wodonga 800 MWMurray to Dederang (1) 940 MWMurray to Dederang (2) 940 MW

These ratings are based on thermal rating considerations and typically apply in both directions insummer. Somewhat higher ratings apply in winter. It should be noted that the system import andexport capacities provided in answer (1) (a) above cannot be simply compared to the individualcircuit capacities given above.

(2) (a) The interlink lines were brought into use as follows:

Buronga to Red Cliffs 1985Jindera to Wodonga 1979Murray to Dederang (1) About 1960Murray to Dederang (2) About 1960

With respect to upgrading of the interlinks from Buronga to Red Cliffs and from Jindera toWodonga, there has been no significant upgrading or enhancements that would change the capacityof the circuits since the lines were originally brought into use.

The Murray to Dederang lines are owned by PowerNet, the Victorian transmission networkmanager, and no maintenance or upgrading data on these lines is available from New South Walessources.

(b) The Buronga to Red Cliffs line is owned by TransGrid with the substation at Red Cliffs owned byPowerNet. Buronga substation is owned by TransGrid.

The Jindera to Wodonga line is owned by TransGrid as far as, but not including, the second towersouth of the Murray River. The line south of this point is owned by PowerNet. The Jinderasubstation is owned by TransGrid with the Wodonga substation owned by PowerNet.

Both Murray to Dederang lines are owned by PowerNet.

(c) TransGrid maintains the substations and sections of line it owns.

It is understood that the Murray to Dederang lines are maintained for PowerNet by the SnowyMountains Hydro-electric Authority between Murray and the first tower on each line south of theMurray River.

(3) (a) No.

(b) As no firm proposals exist, capacities and timeframes are not yet known.

(c) As no firm proposals exist, capacities and timeframes are not yet known.

(d) The effect of the National Competition Policy is to provide non-discriminatory access to theessential service provided by the transmission networks for all market participants comprisinggenerating companies, electricity retailers and customers. This means that State borders areirrelevant to trade in electric energy, subject only to the physical capability of the networks.

LEGISLATIVE COUNCIL QUESTIONS AND ANSWERSMonday 16 June 1997

982

(e) Under the market arrangements that are now in operation, this will be determined by the bidding ofgenerators to be dispatched and the confidential financial contracts that have been, and will be,entered into by the market participants in the two States. Hence, it is not possible to estimate eithera value or amount of trading.

(4) (a) No.

(b) Not applicable.

(c) (i) Discussions are being held with both Queensland and South Australia. Both governments haveannounced their commitment to interconnection.

(ii) In neither case has a definite proposal been finalised.

(d) The proposed Queensland interconnector would have an initial capacity of about 500 MW and theSouth Australian interconnector would have a capacity of about 220 MW.

(e) Subject to environmental and regulatory approvals, the earliest dates are late 1999 and late 2001 forthe South Australian and Queensland interconnections, respectively. Both dates are subject toconfirmation.

(f) The cost of the Queensland interconnection would be about $400 million in present value terms andNew South Wales would contribute about $150 million.

The cost of the South Australian interconnection would be about $84 million in present value termsand New South Wales would contribute about $46 million.

(g) The key benefits from interconnection arise from:

• the avoided cost of generating capacity;

• the ability to trade between the States; and

• the impact of increased market size on supply and demand side development opportunities.

These benefits cannot be evaluated simply in terms of electricity sales as the impact on contracts forcapacity and benefits of increased market competition must also be considered.

*487 FAIR TRADING—INSURANCE COMPANIES—ACCREDITATION—Mr Jobling asked the Minister forCommunity Services, Minister for Aged Services, and Minister for Disability Services representing theMinister for Fair Trading, and Minister for Women—

(1) (a) On 1 May 1997, were three insurance companies accredited by the Minister for Fair Trading toissue policies for faulty workmanship under the Home Building Act 1989?

(b) If so, who are the companies?

(c) Are they the only corporations currently on the panel of approved insurers?

(d) Who are the directors and public officers of such corporations?

(e) Are the corporations domiciled in New South Wales?

LEGISLATIVE COUNCIL QUESTIONS AND ANSWERSMonday 16 June 1997

983

(2) What is the official company address for any companies accredited by the Minister under the HomeBuilding Act 1989?

(3) Do any of the corporations listed under (2) above have regional offices?

(4) When and how were any corporations chosen as insurers under the Home Building Act 1989?

(5) What process was conducted to ascertain the best price or value for New South Wales consumers?

(6) What process of due diligence has been conducted to ascertain such corporations credibility?

(7) How will builders and trades persons be able to comply under the Act from 1 May 1997 with regard tocorrespondence, complaints handling and enquires with the accredited insurers?

(8) Do two of the three insurers currently accredited under the Act not have Sydney telephone district (02)and Hunter (049) listings?

(9) (a) Has the Minister been advised as to the optimum number of insurers to be accredited by anydepartment, agency or consultant to create a viable or competitive market?

(b) What is the text of this advice?

(c) What was the cost of this advice?

(d) Did any conflict of interest arise over such advice?

Answer—

(1) (a) Yes.

(b) • Home Owners Warranty, a division of HIA Insurance Services Pty Ltd, who are appointedagents for a panel of approved insurers managed by the lead insurer Sun Alliance and RoyalInsurance Australia Limited.

• FAI General Insurance Company Ltd.

• HIH Casualty and General Insurance Ltd.

(c) No. Mercantile Mutual Insurance (Australia) Limited and Zurich Australian Insurance Limited havealso been approved since 1 May 1997.

(d) and (e) Information relating to the names of the directors and public officers of these companiesand whether they are domiciled in New South Wales is available from the Australian SecuritiesCommission.

(2) • Home Owners Warranty10 Pitt StreetPARRAMATTA NSW 2150

• FAI General Insurance Company Ltd185 Macquarie StreetSYDNEY NSW 2000

LEGISLATIVE COUNCIL QUESTIONS AND ANSWERSMonday 16 June 1997

984

• HIH Casualty and General Insurance LtdLevel 42, AMP Centre50 Bridge StreetSYDNEY NSW 2000

• Mercantile Mutual Insurance (Australia) Limited347 Kent StreetSYDNEY NSW 2000

• Zurich Australian Insurance Limited5 Blue StreetNORTH SYDNEY NSW 2060

(3) Agency arrangements have been put in place throughout New South Wales to better facilitate access toinsurance coverage. In addition, insurance coverage can be arranged through any insurance broker.

(4) and (5) In 1995, an Insurance Consultative Working Group was established with broad representationfrom the industry to address the issue of private provision of insurance and to ensure that a competitiveenvironment would exist. Insurers were then invited to apply for approval to act as private providers ofinsurance.

(6) Insurers must meet the approval criteria, one of which is that they must be approved by the Insuranceand Superannuation Commission.

(7) Insurer contact details are available from all Fair Trading Centres. The next edition of Target, theDepartment of Fair Trading’s newsletter for licence holders, will incorporate a guide to the insurers withcontact details and the type of policies they are offering. The approval criteria included a requirement forinsurers to have an internal dispute resolution process which builders and tradespersons can access.

(8) Yes. However, to assist builders and tradespersons, especially those who are geographically isolated,insurers have toll-free numbers except for Mercantile Mutual which can be accessed via any insurance broker.

(9) (a) No, as it was decided to allow for a free market environment where any number of insurers wouldbe free to seek approval.

(b) Not applicable.

(c) Not applicable.

(d) Not applicable.

*488 TRANSPORT—TRAIN DELAYS—Mr Gay asked the Treasurer, Minister for Energy, Minister for State andRegional Development, Minister Assisting the Premier, and Vice-President of the Executive Councilrepresenting the Minister for Transport, and Minister for Tourism—

(1) On Friday afternoon 18 April 1997, were trains in Wynyard tunnel delayed for at least half an hour?

(2) On Friday afternoon 18 April 1997:

(a) Were at least two of the ticket vending machines at Wynyard not working?

(b) Was the ticket office unable to provide magnetised tickets?

(c) Were two of the main escalators not functional?

LEGISLATIVE COUNCIL QUESTIONS AND ANSWERSMonday 16 June 1997

985

(3) On Thursday 17 April 1997:

(a) Was train K89 to Richmond in the evening peak hour running 8 minutes late?

(b) Was it only a 6-car train instead of an 8-car train?

(4) On Friday 18 April 1997, was the State Rail Authority forced to run 30-year-old Tulloch carriagesnumbers T4847 and T8446 on trains R41 and S84, respectively?

Answer—

(1) Yes.

(2) No.

(3) Set K89 did not operate to Richmond on the afternoon of 17 April.

(4) Car T4847 was not part of Set R41 on 18 April. There is no Tulloch car T8446.

7 MAY 1997

(Paper No. 65)

*489 POLICE—ALLEGED ELECTION IRREGULARITIES—NELSON BAY RSL CLUB—Mr Vaughan askedthe Attorney General, and Minister for Industrial Relations representing the Minister for Police—

(1) (a) Was the NSW Police Service contacted in regards to irregularities in an election ballot beingconducted by the Nelson Bay RSL Club?

(b) If so, by whom?

(2) What action was taken?

(3) Who were the officers involved and where are they stationed?

(4) (a) Did police seize ballot boxes?

(b) If so, for what reasons were the ballot boxes seized?

(c) Where the ballot boxes taken and stored?

(5) If the ballot boxes were taken into custody, what role did the returning officer, Mr Wade, have with suchseizure?

(6) (a) Prior to the ballot box being seized, did the president of the club, Mr Campbell, indicate to theDepartment of Gaming and Racing or the police, either verbally or in writing, that there wasnothing untoward with the ballot?

(b) If so, what action is being taken against Mr Campbell?

(7) If any irregularities have been found, what action is contemplated by police and against whom?

LEGISLATIVE COUNCIL QUESTIONS AND ANSWERSMonday 16 June 1997

986

(8) Can the Minister give an indication that, should the police inquires not be completed before the nextballot to be conducted by the NSW Electoral Commission, such ballot will be deferred until the outcome ofinquires is known or any proposed action taken?

Answer—

(1) (a) Yes.

(b) Mr Leslie Dwyer, a candidate for the position of President in the ballot.

(2) I am advised by the Deputy Commissioner, Field Operations, that Mr Dwyer initially contacted police,however, the information at that time was insufficient to warrant immediate contact with club management.

(3) Sergeant Coffee of Nelson Bay was initially contacted and he consulted with inspector Neilson, thePatrol Commander. It was determined that on the information available, the irregularities were a matter for theDepartment of Gaming and Racing, not for police investigation, and that Mr John Vernon of the Departmentof Gaming and Racing was contacted.

(4) (a) The Deputy Commissioner, Field Operations, has advised me the answer is no.

(b) Not applicable.

(c) I am advised that ballot boxes were stored at Nelson Bay Police Station at the request of officersfrom the Department of Gaming and Racing.

(5) I am advised by the Deputy Commissioner, Field Operations, that this matter was the subject of anagreement between the Returning Officer, Mr Wade, and officers from the Department of Gaming and Racing.

(6) (a) This is a matter for the Department of Gaming and Racing.

(b) Not applicable.

(7) I am advised by the Deputy Commissioner, Field Operations, that no irregularities have been discoveredwhich warrant police action.

(8) I am advised by the Deputy Commissioner, Field Operations, that no police enquiries are beingconducted.

*490 GAMING AND RACING—ALLEGED ELECTION IRREGULARITIES—NELSON BAY RSLCLUB—Mr Vaughan asked the Minister for Community Services, Minister for Aged Services, and Ministerfor Disability Services representing the Minister for Gaming and Racing, and Minister Assisting the Premieron Hunter Development—

(1) Was a complaint made to the Department of Gaming and Racing regarding irregularities in the recentelections at the Nelson Bay RSL Club?

(2) Was the returning officer the manager of the club, Mr Wade?

(3) Was it alleged that Mr Wade had opened and dealt with ballot papers prior to the closure of the ballot?

(4) Did the president of the club, Mr Campbell, indicate to the Department of Gaming and Racing or theNSW Police Service, either verbally or in writing, that no irregularities had taken place?

LEGISLATIVE COUNCIL QUESTIONS AND ANSWERSMonday 16 June 1997

987

(5) If so, has it been established whether or not Mr Campbell was aware at the time of making such verbalcomment or writing the letter that possible irregularities had taken place?

(6) Did Mr Campbell call in the Department of Gaming and Racing or was this a result of a complaint?

(7) (a) Did the Department of Gaming and Racing refer the matter to the NSW Police Service?

(b) If so, for what reason?

(8) Do the Police Service and the Department of Gaming and Racing have:

(a) Individual roles in this matter?

(b) Collective roles in this matter?

(c) Any outcomes of inquiries made to date?

(9) Was it reported in the Port Stephen Examiner that the Gaming Department director, Mr Ron McCann,had commended the club on the way it had handled the issue?

(10) If so:

(a) Is the report in the Port Stephen Examiner correct?

(b) If the report is not correct, has there been any investigation as to who made such a statement?

Answer—

(1) No.

(2) Yes.

(3) Yes.

(4) I am not aware of any possible conversation or actions between Mr Campbell and the police. TheDepartment of Gaming and Racing has advised me that the president did not indicate to departmental officers,either verbally or in writing, that no irregularities had taken place.

(5) Refer to (4).

(6) Mr Campbell did not call in the Department of Gaming and Racing. The Department became involved asa result of a complaint received by the police.

(7) (a) No. Police officers requested the assistance of departmental officers.

(b) Refer to (7) (a).

(8) (a) Yes.

(b) Yes.

(c) Gaming and Racing departmental officers have established that ballots were opened prior to theclosure of voting in breach of the club’s Memorandum and Articles of Association. Ballot papersand voting records were taken by the Department to the local police for possible examination. TheState Electoral Commission was appointed by the club to conduct a rescheduled election of themembers of the governing body of the club.

LEGISLATIVE COUNCIL QUESTIONS AND ANSWERSMonday 16 June 1997

988

(9) Yes.

(10) (a) The article reports that Mr McCann had commended the club on the way it had since handled theissue. This is correct. This relates to the actions taken by the club to abort the election and appointanother returning officer.

(b) Refer to (10) (a).

*491 ENERGY—ELECTRICITY SUPPLIERS—SERVICE CHARGES—Mr Jobling asked the Treasurer,Minister for Energy, Minister for State and Regional Development, Minister Assisting the Premier, and Vice-President of the Executive Council—

(1) (a) Are service availability charges levied on customers by the various publically-owned electricitydistributors in New South Wales?

(b) If so, which electricity distributors do so?

(2) What are these charges levied for?

(3) Describe the geographic or market areas affected by these charges?

(4) How are these charges calculated?

(5) Are there any exempt or concessional categories of customers regarding these charges?

(6) By class, when were service availability charges introduced?

(7) How much revenue has been collected to date, in dollar value, from customers?

(8) (a) Were any such charges levied by the previous county councils (electricity)?

(b) If so, what form did they take?

(9) Do service availability charges in the electricity sector conflict with Independent Pricing and RegulatoryTribunal (IPART) recommendations on utility pricing regimes?

Answer—

(1) (a) While New South Wales distributors do not use identical terminology for components of theirtariffs, all electricity distributors have a fixed component for at least some of their tariffs. The fixedcomponent is called a service availability charge by some distributors.

(b) Electricity distributors have a service availability charge or a similar charge included in some or allof their tariff structures.

(2) Electricity distributors have to meet many fixed costs which are incurred even if no energy is used. Tomaintain supply to a customer’s premises, a distributor has to meet the capital cost of lines and substations;maintain poles, lines, transformers and other equipment in working order; provide metres and load controlequipment; read metres and raise and settle accounts.

In general terms, the service availability charge or similar charges are fixed monthly or quarterly chargeswhich attempt to recover in an equitable manner from all customers the fixed costs of providing, maintainingand operating the electricity distribution and transmission systems.

LEGISLATIVE COUNCIL QUESTIONS AND ANSWERSMonday 16 June 1997

989

(3) Service availability charges or similar fixed charges affect consumers throughout New South Wales.

(4) The service availability charge covers the fixed costs of providing access to a distributor’s network anddoes not vary with the amount of energy consumed.

Distributors use different methods for determining these charges. Generally, these charges are determined byallocating costs between the different tariff classes.

(5) New South Wales age pensioners or welfare pensioners receive a concession on their electricity bills.With the exception of EnergyAustralia’s pensioner tariff, this concession is not specifically linked to any partof the tariff structure. EnergyAustralia’s pensioner tariff provides a 10 per cent discount on the serviceavailability charge. Some customers will effectively receive a rebate on a portion of this charge as a result ofthe maximum price increase constraint imposed by IPART.

(6) For most distributors, service availability charges or other fixed charges were introduced by the oldcounty councils. Given the large number of tariffs and customer classes, it is difficult to provide a breakdownof when these charges were introduced. For example, Great Southern Energy, which is the third smallestdistributor in New South Wales, has over 50 tariffs.

(7) The revenue collected from these charges is part of the revenue cap as determined by IPART in theirMarch 1996 Determination on Network Prices.

(8) (a) Service availability and other fixed charges were charged by most of the old electricity countycouncils.

(b) These charges took the form of a fixed charge, standing charge, access charge, service accesscharge and a service availability charge.

(9) In its pricing determination, IPART sets the maximum revenue each distributor can earn and puts a limiton the maximum increase of individual tariffs. Generally, distributors have discretion within these bounds todetermine individual tariffs and tariff structures. The service availability charge or similar charges are notinconsistent with IPART’s pricing determination.

8 MAY 1997

(Paper No. 66)

*492 ROADS—SYDNEY HARBOUR BRIDGE—TOLL BOOTHS—BOOM GATES—Mr Jones asked theTreasurer, Minister for Energy, Minister for State and Regional Development, Minister Assisting the Premier,and Vice-President of the Executive Council representing the Minister for Public Works and Services,Minister for Roads, Minister for Ports, Assistant Minister for Energy, and Assistant Minister for State andRegional Development—

(1) In the boom gate trial on toll booths on the Sydney Harbour Bridge, how many vehicles per hour pass thebooth without the boom gate and how many with the boom gate?

(2) Is the revenue from the booth without the boom gate more or less per hour on average?

(3) What assessment has been made of delays caused by the boom gate?

(4) What is the capital cost of the construction of a single boom gate?

(5) What is the annual cost in electricity of running a single boom gate?

LEGISLATIVE COUNCIL QUESTIONS AND ANSWERSMonday 16 June 1997

990

(6) If the electricity is derived from burning coal, what is the annual greenhouse gas emissions from a singleboom gate?

(7) What contractual process was undertaken to determine the supplier of the boom gates?

(8) How many companies were involved in bidding to supply the boom gates?

(9) Why was it thought necessary to trial boom gates?

(10) How many motorists annually were estimated to drive through the booths without paying?

(11) How were these figures arrived at?

(12) Will the Minister veto the boom gate system unless there are good reasons for introducing such asystem?

Answer—

A boom gate toll plaza trial began at the southern end of the Sydney Harbour Bridge in February 1997following concern by toll staff over their safety and to tackle toll evasion.

An evaluation of the trial, involving a detailed compilation of relevant information, has not yet beencompleted.

*493 AGRICULTURE—BATTERY EGG PRODUCTION—Mr Jobling asked the Minister for CommunityServices, Minister for Aged Services, and Minister for Disability Services representing the Minister forAgriculture—

(1) What current legislation or regulations materially impact on the operation of commercial egg producersusing the battery system of farming?

(2) What are the current regulations that govern the hygiene, management, disease control and financialaspects of battery egg production?

(3) What material changes have occurred to laws governing this method of farming since its achievement ofdominance, in the 1960s, in the egg production chain?

(4) (a) Is there a recognised Industry Code of Practice?

(b) If so, is it endorsed by the Government or its agencies?

(5) How are any laws, regulations and conventions pertaining to the Industry Code of Practice policed inNew South Wales?

(6) What factors or risk events have been identified by the Department as posing a threat to the health andthe well-being of hens under the battery system of management?

(7) Are there proposals before the Government to address the issue of cruelty to hens that may be prevalentin the battery hen industry?

(8) How does the battery system impact upon the pricing encountered by consumers in New South Wales?

(9) What quality control procedures or checks apply to battery system farmers?

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991

Answer—

(1) The following Acts and Regulations impact on the operations of commercial egg producers using thebattery system of farming:

Prevention of Cruelty to Animals Act 1979.Stockfood and Medicine Act 1989.Stock (Chemical Residue) Act 1975.Pesticides Act 1978.Exotic Diseases in Animals Act 1991.Stock Disease Act 1923.Pure Food Act 1908.Local Government Act 1993.Environmental Planning and Assessment Act 1979.Environmental Offences and Penalties Act 1989.

(2) The Acts and Regulations mentioned above impact on all aspects of poultry production but do notgovern specifically the hygienic, management, disease control and financial aspects of the battery cageproduction system.

(3) The most significant change was introduced in January 1996. It guaranteed minimum cage floor spacefor the housing of layers. This is now enforceable under the Prevention of Cruelty to Animals Act (POCTA)and Regulations.

(4) (a) The recognised Industry Code of Practice is the Model Code of Practice for the Welfare ofAnimals - Domestic Poultry, prepared by the Sub Committee on Animal Welfare (SCAW) of theAnimal Health Committee within the Agricultural and Resource Management Council of Australiaand New Zealand (ARMCANZ).

(b) This code was endorsed by ARMCANZ as a national code in October 1994.

(5) In New South Wales, the Prevention of Cruelty to Animals Act 1979 (POCTA) is policed by RSPCAinspectors. It is recommended in the Green Paper to POCTA that the National Model Codes of Practice for theWelfare of Animals are adopted by reference into the Act. This would make the codes admissible as evidencein proceedings related to offences under the Act.

(6) Relative to other systems of poultry production, hens in the battery system are in good health. Thesystem, as most intensive systems, is however conducive to the spread of respiratory diseases. Goodventilation and a strategic vaccination program effectively control these diseases. Bone weakness has alsobeen identified as a risk factor. Current research is exploring solutions to this problem.

(7) The Senate Select Committee Report on Intensive Livestock Production (1990) concluded that thealternative systems do not provide a demonstrable welfare advantage over the cage system. The TempleReview submitted to the Working Group of the National Hen Housing Review (1994) also concluded that nosingle commercial system among the alternatives to cages provide a significant welfare advantage. Therefore,unless specific issues of cruelty can be clearly identified, the welfare of hens in the battery system will remainto be addressed through periodic review of the Model Codes of Practice for the Welfare of Animals, asscientific information emerges on various aspects of poultry production.

(8) Eggs from the battery cage system are significantly cheaper to produce than eggs from other productionsystems. The price differential to consumers can be in the vicinity of $1 per dozen eggs compared with the freerange system.

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992

(9) The shell egg is one of the safest food items available to consumers. The industry striving to maintain thereputation and the quality of the product is involved in the National Safety Food Working Group. It formulatedits Code of Practice for Shell Egg Production Grading and Distribution, a Hazard Analysis Critical ControlPoint (HACCP) approach, with the final draft currently being finalised.

In the poultry welfare area, the industry instigated Animal Care Statements for producers involved in allsystems of egg production. These statements are audited by the RSPCA, State Government representativesand industry representatives.

Matters pertaining to environmental issues such as noise, dust, vermin, etc., are under the scrutiny of localshire/city councils.

*494 AGE AND DISABILITY—BOARDING HOUSE CLOSURES—CAMBRIDGE HOUSE, STANMORE—Mrs Forsythe asked the Minister for Community Services, Minister for Aged Services, and Minister forDisability Services—

(1) Did the Ageing and Disability Department recently revoke the licence of a boarding house in CambridgeStreet, Stanmore, known as “Cambridge House”?

(2) Prior to its closure, did the local council contact the Department requesting the closure?

(3) If so, will the Minister release the correspondence?

(4) (a) Prior to its closure, did any member of Parliament write to you, or otherwise contact you, seeking itsclosure?

(b) If so, who?

(5) Did you provide any direction to your Department to have the lease revoked?

Answer—

(1) “Cambridge House” was a privately operated centre for people with disabilities, licensed under the 1973Youth and Community Services Act. The licence for “Cambridge House” was revoked on 5 March followinga long history of concerns about the operation of the premises. Given that there were a number of breaches ofthe licence conditions, and that the proprietor had numerous chances to rectify these breaches but had failed todo so, it was deemed that the proprietor was no longer a “fit and proper” person to hold a licence under theAct.

(2) Prior to the closure, the Department received numerous complaints or concerns from various agencies.Among these were two letters from Marrickville Council to the Department in November 1996. These letterswere requests from council to investigate issues of supervision of the residents which were more properly partof the Department’s area of responsibility than the council’s. These letters in no sense were a request for theclosure of the licensed premises.

(3) I am happy to provide copies of this correspondence (available from the Legislative Council office).

(4) (a) and (b) Prior to the closure, I did not receive any correspondence or communications from anymember of Parliament seeking its closure.

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993

(5) The delegation for revoking a licence lies with the Director, Program Policy, Planning and Operations,within the Ageing and Disability Department. The decision to revoke a licence is usually a last resort after allother avenues to achieve compliance with the conditions of the licence have been exhausted. “CambridgeHouse” is, in fact, the only licence to be formally revoked since the formation of the Ageing and DisabilityDepartment in 1994. The proprietor sought an injunction in the Supreme Court to prevent the revocation butthis was rejected both by the Court and by the Appeal Court. The judges in those hearings found theDepartment’s actions to be fair and justified. As the Minister responsible for the regulation of the Youth andCommunity Services Act, I was fully briefed on the Department’s concerns and intended action in respect of“Cambridge House”, but as stated previously, the decision to revoke the licence was taken by the Director ofthe responsible unit.

13 MAY 1997

(Paper No. 67)

495 INDUSTRIAL RELATIONS—REDUNDANCY PROVISIONS—Mr Jobling to ask the Attorney General,and Minister for Industrial Relations—

496 POLICE—INTERNAL WITNESS UNIT—Ms Kirkby to ask the Attorney General, and Minister forIndustrial Relations representing the Minister for Police—

14 MAY 1997

(Paper No. 68)

497 POLICE—CABRAMATTA—Ms Kirkby to ask the Attorney General, and Minister for Industrial Relationsrepresenting the Minister for Police—

498 INDEPENDENT COMMISSION AGAINST CORRUPTION—ALLEGATIONS OF CORRUPTION—MsKirkby to ask the Treasurer, Minister for Energy, Minister for State and Regional Development, MinisterAssisting the Premier, and Vice-President of the Executive Council representing the Premier, Minister for theArts, and Minister for Ethnic Affairs—

499 STATUTORY AUTHORITIES—FEMALE REPRESENTATION—Mr Jobling to ask the Minister forCommunity Services, Minister for Aged Services, and Minister for Disability Services representing theMinister for Fair Trading, and Minister for Women—

500 ENERGY—ELECTRICITY LEVY—Mr Jobling to ask the Treasurer, Minister for Energy, Minister for Stateand Regional Development, Minister Assisting the Premier, and Vice-President of the Executive Council—

501 ENERGY—INTERSTATE ELECTRICITY TRANSFERS—Mr Jobling to ask the Treasurer, Minister forEnergy, Minister for State and Regional Development, Minister Assisting the Premier, and Vice-President ofthe Executive Council—

502 URBAN AFFAIRS AND PLANNING—LAND DEVELOPMENTS—KU-RING-GAI CHASE NATIONALPARK—ENDANGERED SPECIES—Ms Kirkby to ask the Treasurer, Minister for Energy, Minister for Stateand Regional Development, Minister Assisting the Premier, and Vice-President of the Executive Councilrepresenting the Minister for Urban Affairs and Planning, and Minister for Housing—

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994

503 COMMUNITY SERVICES—STAFF STRESS LEAVE—Mrs Forsythe to ask the Minister for CommunityServices, Minister for Aged Services, and Minister for Disability Services—

504 ENERGY—CORPORATISATION—DEBT—Dr Pezzutti to ask the Treasurer, Minister for Energy,Minister for State and Regional Development, Minister Assisting the Premier, and Vice-President of theExecutive Council—

15 MAY 1997

(Paper No. 69)

505 ETHNIC AFFAIRS—SENIOR EXECUTIVE SERVICE—NON-ENGLISH SPEAKINGBACKGROUNDS—Mr Samios to ask the Treasurer, Minister for Energy, Minister for State and RegionalDevelopment, Minister Assisting the Premier, and Vice-President of the Executive Council representing thePremier, Minister for the Arts, and Minister for Ethnic Affairs—

506 ARTS—STATE LIBRARY—NON-ENGLISH MATERIAL—Mr Samios to ask the Treasurer, Minister forEnergy, Minister for State and Regional Development, Minister Assisting the Premier, and Vice-President ofthe Executive Council representing the Premier, Minister for the Arts, and Minister for Ethnic Affairs—

507 ENERGY—MACQUARIE GENERATION—Mr Jobling to ask the Treasurer, Minister for Energy, Ministerfor State and Regional Development, Minister Assisting the Premier, and Vice-President of the ExecutiveCouncil—

508 COMMUNITY SERVICES—JUVENILE JUSTICE CENTRES—DETAINEES—Mr Corbett to ask theMinister for Community Services, Minister for Aged Services, and Minister for Disability Services—

20 MAY 1997

(Paper No. 70)

509 ENVIRONMENT—THREATENED SPECIES CONSERVATION ACT—KOALAS—Mr Jones to ask theAttorney General, and Minister for Industrial Relations representing the Minister for the Environment—

510 PREMIER—COASTAL DEVELOPMENT—PINNY BEACH—Mr Jones to ask the Treasurer, Minister forEnergy, Minister for State and Regional Development, Minister Assisting the Premier, and Vice-President ofthe Executive Council representing the Premier, Minister for the Arts, and Minister for Ethnic Affairs—

511 FISHERIES—BAIT SUPPLY COMPANIES—BIODEGRADABLE PLASTIC BAGS—Mr Jones to ask theMinister for Community Services, Minister for Aged Services, and Minister for Disability Servicesrepresenting the Minister for Mineral Resources, and Minister for Fisheries—

21 MAY 1997

(Paper No. 71)

512 PREMIER—BUDGET REVIEW COMMITTEE—MR PETER SAMS—Mr Gay to ask the Treasurer,Minister for Energy, Minister for State and Regional Development, Minister Assisting the Premier, and Vice-President of the Executive Council representing the Premier, Minister for the Arts, and Minister for EthnicAffairs—

LEGISLATIVE COUNCIL QUESTIONS AND ANSWERSMonday 16 June 1997

995

513 URBAN AFFAIRS AND PLANNING—HONEYSUCKLE DEVELOPMENT CORPORATION—Mr Jonesto ask the Treasurer, Minister for Energy, Minister for State and Regional Development, Minister Assistingthe Premier, and Vice-President of the Executive Council representing the Minister for Urban Affairs andPlanning, and Minister for Housing—

514 HEALTH—EPIDEMICS—VACCINATION—Mr Corbett to ask the Minister for Community Services,Minister for Aged Services, and Minister for Disability Services representing the Deputy Premier, Minister forHealth, and Minister for Aboriginal Affairs—

22 MAY 1997

(Paper No. 72)

515 ENERGY—PACIFIC POWER—PRIVATISATION—Dr Pezzutti to ask the Treasurer, Minister for Energy,Minister for State and Regional Development, Minister Assisting the Premier, and Vice-President of theExecutive Council—

27 MAY 1997

(Paper No. 73)

516 MINERAL RESOURCES—KAOLIN MINES & DEVELOPMENT—Mr Jones to ask the Minister forCommunity Services, Minister for Aged Services, and Minister for Disability Services representing theMinister for Mineral Resources, and Minister for Fisheries—

517 URBAN AFFAIRS AND PLANNING—SYDNEY HARBOUR CLEAN-UP—Mr Ryan to ask theTreasurer, Minister for Energy, Minister for State and Regional Development, Minister Assisting the Premier,and Vice-President of the Executive Council representing the Minister for Urban Affairs and Planning, andMinister for Housing—

28 MAY 1997

(Paper No. 74)

518 AGRICULTURE—1996/97 BUDGET—UNALLOCATED DROUGHT MONEY—Mr Bull to ask theMinister for Community Services, Minister for Aged Services, and Minister for Disability Servicesrepresenting the Minister for Agriculture—

16 JUNE 1997

(Paper No. 76)

519 ENERGY—ELECTRICITY PRIVATISATION—Mr Jobling to ask the Treasurer, Minister for Energy,Minister for State and Regional Development, Minister Assisting the Premier, and Vice-President of theExecutive Council—

(1) Has the Government established a Committee of Inquiry to examine the desirability of selling publicelectricity assets in New South Wales?

(2) Is the Chairman of this Committee Mr Bob Hogg?

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996

(3) What are Mr Hogg’s specific skills, expertise and qualifications to Chair such a Committee of Inquiry?

(4) What is Mr Hogg’s current occupation?

(5) Is Mr Hogg a registered lobbyist at the Commonwealth Parliament?

(6) (a) Who are the other members of the Committee of Inquiry?

(b) What are their current occupations?

(7) What is the total and individual remuneration to be paid to the Chairman and members of the Committeeof Inquiry?

(8) When will the committee first meet and where?

(9) (a) What staffing and resources will be provided to the committee?

(b) What is the anticipated total cost of the inquiry, including office rental and costs?

(10) When will the interim reports and final reports be made?

(11) (a) What does the phrase “appropriate weighting of long-term as well as short to medium-termconsiderations” mean in the context of clause 12 of the Terms of Reference?

(b) What schemes or value system will be the basis of any weighting utilised?

(12) Will the submissions, proceedings and reports of the Committee of Inquiry be made public?

520 GAMING AND RACING—TAB—FIXED ODDS BETTING—Ms Kirkby to ask the Minister forCommunity Services, Minister for Aged Services, and Minister for Disability Services representing theMinister for Gaming and Racing, and Minister Assisting the Premier on Hunter Development—

(1) (a) Has the Government made all reasonable efforts to increase the turnover of the TAB by properlyenquiring into the viability of Fixed Odds Betting (FOB), also referred to as Set Price Betting(SPB)?

(b) If not, will the Government be selling the TAB for significantly less than its true value?

(2) Did the Minster for Racing and Gaming decide against a trial of the FOB system being promoted by theNew South Wales TAB on the basis that it was detrimental to the small variable price punter?

(3) (a) Was a system known as the Set Price Totalisator (SPT) devised some time ago by South Australianinventor Grant Hall (Grantley Thomas Aubrey Hall) and described in a patent application(PM 4044. PCT/AU95/00088, AU-A-17484/95, etc.)?

(b) Was the patent application filled out about 7 months earlier than the patent application filed by theNew South Wales TAB?

(c) Is the system promoted by the New South Wales TAB just a small subset of the Hall invention?

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997

(4) (a) Does the SPT patent application include approximately 105 ideas not found in the previousliterature including complex equations which can be used in a number of different ways?

(b) Does the New South Wales TAB application include only 10 such ideas?

(c) If so, are most or all of those 10 ideas to be found in the former application or are obvious or won’twork?

(5) Was one of the main objectives in devising the SPT to provide versions specifically aimed not only atavoiding the detrimental effect on variable price punters but actually providing them with better prices?

(6) Does the New South Wales TAB patent application only deal with win betting whereas the SPTinvention is apparently applicable to virtually all types of pools?

(7) What steps has the Government taken to thoroughly investigate whether the inventor of the SPT may beable to provide one or more versions suitable for its needs?

(8) Given that bookmakers’ phone betting with very restrictive lower betting limits and turnover tax of about2% has provided significant extra turnover and profits, has the Government had any research done to indicatewhat level of extra profit there might be from the introduction of SPB without the need for those restrictivelower betting limits and with 14.25% commission, especially when it may be applicable to all types of pools?

(9) Has the Government had any research done to ascertain how much higher the price for the sale of theTAB might be if SPB is introduced?

(10) Could SPB have been in operation for about 2½ years thus providing significant extra revenue for theracing industry and the Government and better variable prices for average TAB punters as well as set prices?

(11) With partners who had the appropriate rights and expertise, would development of this system and itsimplementation worldwide provide an opportunity for growth for the TAB?

(12) (a) Does the share market values growth very highly?

(b) If so, will a relatively small increase in growth prospects provide a relatively large increase invaluation?

(c) Has the Government had any research done on the level of any such growth and the impact of thatgrowth on the sale price of the TAB?

(13) Is the Government pursuing this possibility for growth or has it investigated the same?

John Evans Clerk of the Parliaments

___________________Authorised by the Parliament of New South Wales