Page 2599 - Week 09 - Wednesday, 24 August 1994
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ACTTAB - Contract with VITAB Ltd
MR CORNWELL: Madam Speaker, my question is addressed to the Treasurer. I am impressed by her comprehensive knowledge of the VITAB situation and I ask, therefore: What was the total cost of the ill-fated "it is money for jam" VITAB contract to the people of Canberra, including legal fees, travel costs, the settlement, computer upgrades, software changes, loss of the Northern Territory TAB link, increased linkage fee, reduced franchise revenue, loss of turnover, the Pearce report, et cetera?
MS FOLLETT: Madam Speaker, I have recently answered fairly detailed questions from both Mrs Carnell and Mr De Domenico on the cost of this agreement. There are some aspects of Mr Cornwell's question on which I do not have advice; I would have to consult with the Minister responsible, Mr Lamont. In terms of the costs of the inquiry, I can certainly provide you with those costs, as I have provided them to Mrs Carnell and Mr De Domenico previously. Those costs fall into three categories. First of all, there were legal costs; there were the fees paid to Professor Pearce and the associated administrative and support costs for him; and the cost of printing the report, though that was not a major cost. The legal fees were one of the larger items.
I should note that Mrs Carnell urged this inquiry at any cost, no matter what the cost. She showed some foresight for once, so she is hardly in a position to complain about it.
Members interjected.
MS FOLLETT: Madam Speaker, I do know their names, if you want me to help you name them.
The costs have been explained before. The ACT, of course, met the reasonable costs associated with Mr Berry's counsel, Mr James, QC. The Government Solicitor has arranged payment to Mr James of $34,938. Mr Redpath was the solicitor instructing Mr James and his fees were $5,390. ACTTAB, as a separate statutory authority, arranged its own legal representation at its own cost, presumably met from its operating expenses. The legal representation for my own department and the Department of the Environment, Land and Planning was provided by the Government Solicitor's Office and there was no additional cost for that.
The fees paid to Professor Pearce in his capacity as the board of inquiry totalled $51,300. That was calculated at a rate of $300 an hour. In addition, there was a small support service cost and administrative expenses totalling some $13,000. The cost of printing the report was $1,500 or thereabouts. The other major cost associated with the agreement was the payment agreed upon, as we have discussed in previous questions. As I have said, this is a loan from ACTBIT to the ACTTAB, and it is certainly my intention, though clearly not that of members opposite, that that loan be repaid by ACTTAB, and therefore the ACT taxpayer will not bear that cost.
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