LEGISLATIVE ASSEMBLY OF THE NORTHERN TERRITORY

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LEGISLATIVE ASSEMBLY OF THE NORTHERN TERRITORY

Public Accounts Committee

Associated Minutes of Proceedings Report of Ministerial

Correspondence on Subordinate Legislation

July 2018 – May 2019

May 2019

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Present:

LEGISLATIVE ASSEMBLY OF THE NORTHERN TERRITORY 13th Assembly

Public Accounts Committee

MINUTES OF PROCEEDINGS

Meeting No. 29

12.00 PM, Tuesday, 14 August 2018

Litchfield Room

Mrs Kate Warden, MLA, Chair, Member for Sanderson Mr Gerry Wood, MLA, Member for Nelson

Mr Paul Kirby, MLA, Member for Port Darwin Mrs Lia Finocchiaro, MLA, Member for Spillett Mr Terry Mills, MLA, Deputy Chair, Member for Blain Mr Tony Sievers, MLA, Member for Brennan

Secretariat: Mr Russell Keith, First Clerk Assistant and Committee Secretary Ms Elise Dyer, Senior Research Officer

Ms Annie McCall, Administration/Research Officer

1. MEETING

Mr Mills chaired the meeting.

2. PREVIOUS MINUTES MEETING 28

Mrs Finocchiaro moved and Mr Kirby seconded:

That the Minutes of Meeting Number 28 be confirmed.

Question put and passed.

3. CORRESPONDENCE

The correspondence was noted.

4. SUBORDINATE LEGISLATION

Mrs Warden moved and Mr Sievers seconded:

That the Committee:

• Note the correspondence

• Refer Professor Aughterson's comments on the Public and Environmental Health Amendment Regulations to the Minister for Health for her response.

5. PAC ANNUAL REPORT, BERRIMAH FARM & MAJOR PROJECTS

The Committee considered the actions arising from its examination of the Berrimah Farm Redevelopment Project and agreed to seek from the relevant an update on their progress in implementing the Northern Territory Project Development Framework.

Mr Sievers moved and Mrs Warden seconded:

That the Committee adopt the draft PAC Annual Report.

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6. STATUTORY REPORTS

The Committee noted the reports.

7. OTHER BUSINESS

Mr Wood raised the Fidelity Fund and the Committee discussed his concerns regarding its coverage of incomplete homes where the builder is not declared bankrupt. The Committee requested the Secretariat to prepare a brief on the Fidelity Fund.

8. NEXT MEETING 23 October 2018

Meeting finished at 12.20pm

Mrs Kate Warden, MLA

Chair

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LEGISLATIVE ASSEMBLY OF THE NORTHERN TERRITORY 13th Assembly

Public Accounts Committee

MINUTES OF PROCEEDINGS

Meeting No. 30

12.00 PM, Tuesday, 30 October 2018

Litchfield Room

Present: Mrs Kate Warden, MLA, Chair, Member for Sanderson Mr Gerry Wood, MLA, Member for Nelson

Guests: Ms Julie Crisp, NT Auditor-General

1. AUDITOR-GENERAL AUGUST REPORT

Ms Crisp briefed the Committee on her August report.

The Committee agreed to invite the Department of Infrastructure, Planning and Logistics to provide a briefing on Indigenous Development Plans at a date to be decided.

2. PREVIOUS MINUTES MEETING 29 Mr Kirby moved and Mr Mills seconded:

3. CORRESPONDENCE

The Committee requested the Secretariat recirculate correspondence received from the Chief Minister, Appointment of Reviewer ofAuditor-General's Office, 5 September 2018 and follow up

on the Minister for Health's response to letter dated 14 August 2018 regarding Public and Environmental Health Amendment Regulations (No 12 of 2018).

4. NORTHERN TERRITORY PROJECT DEVELOPMENT FRAMEWORK

The Committee resolved to write to the Minister for Trade, Business and Innovation seeking a

timeline for the finalisation and implementation of the Northern Territory Project Development

Framework, with a response to be provided to the Committee by 16 November 2018.

5. SUBORDINATE LEGISLATION

The Committee considered the correspondence from Ms Gearin and the briefing note.

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Education and Care Services National Amendment Regulations 2018

The Committee resolved to write to the Minister to ask why former Budget Based Funded early childhood and school age education and care services continue to be exempt from the National Quality Framework and whether the exemption of such services impacts the rights of the users of those services to an appropriate standard of care and education.

Gaming Machine Regulations (No 15 of 2018)

The Committee resolved to write to the Minister seeking advice as to how the reduction in gaming machines is effected, in particular:

• How is the number of gaming machines reduced?

• What procedure is there for determining which gaming machines will no longer be authorised?

• What rights of appeal or consultation does a person have if their gaming machines lose authorisation?

• Is there any compensation due or payable if a person loses authorisation of a g.aming machine?

Termination of pregnancy Law Reform Amendment Regulations 2018 (No 17 of 2018)

The Committee resolved to write to the Minister noting that it is pleased that Regulations 17 of 2018 have addressed the drafting error in regulation 4(5) but noting its concern that the tabling

note stated the Committee's concerns with Regulation 8 had been resolved by a

comprehensive written response when the Committee's concerns with that response raised by letter of 16 November 2017 had not been responded to.

Fisheries Amendment (Priority Species and Swim Bladder) Regulations 2018 (No 18 of 2018)

The Committee resolved to write to the Minister to seek explanation of the justification for reversing the onus of proof and whether the regulation has sufficient regard to Aboriginal tradition.

6. MASTER BUILDERS FIDELITY FUND

The Committee considered and noted the briefing note and requested the Secretariat circulate policy documents from the Fidelity Fund website.

The Committee resolved to write to the Treasurer to seek information on the balance of the fund.

The Committee resolved to invite the Master Builders Association to brief the Committee on the Fidelity Fund at a future meeting.

7. NEXT MEETING 27 November 2018

Meeting finished at 13.20pm

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Mrs Kate Warden, M LA

Chair

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Present:

Secretariat:

LEGISLATIVE ASSEMBLY OF THE NORTHERN TERRITORY 13th Assembly

Public Accounts Committee

MINUTES OF PROCEEDINGS

Meeting No. 31

12.10 PM, Tuesday, 27 November 2018

Litchfield Room

Mr Russell Keith, First Clerk Assistant and Committee Secretary Ms Elise Dyer, Senior Research Officer

1. PREVIOUS MINUTES MEETING 30

Mrs Finocchiaro moved and Mr Mills seconded:

2. CORRESPONDENCE

3. SUBORDINATE LEGISLATION

The Committee noted the briefing note. The Committee discuss the operation of gaming

machine licensing and the Chair agreed to orally seek further information about the number and location of gaming machines and report back to the Committee.

4. NORTHERN TERRITORY PROJECT DEVELOPMENT FRAMEWORK

The Committee resolved to write to the Minister for Trade and Major Projects seeking a timeline

for the finaiisation and implementation of the Northern Territory Project Development

Framework and advice on what framework is being used prior to implementation.

5. YOUTH DETENTION CENTRE

The Committee resolved to write to the Minister for Territory Families seeking a written briefing on the allocation of for the proposed youth detention centre to be built in the Darwin region and the application of the Northern Territory Project Development Framework.

6. ROOM TO BREATHE

The Committee resolved to write to the Minister for Housing and Community Development seeking a written progress report on the Room to Breathe Program expenditure and achievements to date, including details of the Room to Breathe Program in Santa Teresa.

7. WARREN PARK

The Committee resolved to write to the Minister for Tourism and Culture seeking a written progress report on expenditure and progress to date compared with proposed budget.

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8. MASTER BUILDERS FIDELITY FUND

The Committee resolved to write to Master Builders NT to invite them to attend a public briefing in early 2019 to answer questions relating to the Master Builders Fidelity Fund, either at the Committee's first or subsequent meeting as determined by the Chair.

9. NEXT MEETING 12 February 2018

Meeting finished at 12.45 pm

iandra Nelson, MLA

Chair

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Present:

Guest Secretariat:

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LEGISLATIVE ASSEMBLY OF THE NORTHERN TERRITORY 13th Assembly

Public Accounts Committee

MINUTES OF PROCEEDINGS

Meeting No. 32

12.30 pm, Tuesday, 12 February 2019

Litchfield Room

Mrs Lia Finocchiaro, MLA, Member for Spillett Mr Terry Mills, MLA, Deputy Chair, Member for Blain Ms Sandra Nelson, MLA, Member for Katherine Mr Tony Sievers, MLA, Member for Brennan Ms Julie Crisp, Auditor-General

Mr Russell Keith, First Clerk Assistant and Committee Secretary Ms Elise Dyer, Senior Research Officer

1. RESIGNATION OF CHAIR

Mrs Warden advised the Committee she was hereby standing down as Chair of the Committee.

2. ELECTION OF CHAIR

The Committee Secretary sought nominations for Chair of the Committee.

Ms Nelson nominated to be Chair and Mrs Warden seconded the nomination.

As there were no other nominations, the Secretary declared Ms Nelson to be Chair of the Committee.

3. BRIEFING FROM THE AUDITOR-GENERAL

The Auditor-General briefed the Committee on her November 2018 report.

The Auditor-General withdrew from the meeting.

4. PREVIOUS MINUTES MEETING 31

5. CORRESPONDENCE

6. BUDGET REPAIR

The Committee discussed the letter from Mrs Finocchiaro regarding the A plan for budget repair: Interim Report and the requirements of the F/sca/ Integrity and Transparency Act.

COMM2016/00010.277

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The Committee agreed to write to the Treasurer to ask that the Under Treasurer brief it at a public hearing on how the Northern Territory has arrived at this situation and what is being done to ensure that the principles of the Fiscal Integrity and Transparency Act are observed.

7. SUBORDINATE LEGISLATION

The Committee noted the brief on subordinate legislation.

8. WARREN PARK

The Committee noted the correspondence and briefing note.

9. ROOM TO BREATHE

10. DARWIN YOUTH JUSTICE CENTRE

The Committee agreed to write to the Minister for Territory Families to ask the extent to which awarding the design contract commits the building of the centre to a greenfield site, and what consideration Territory Families gave to using the existing site of the Youth Justice Centre.

11. REPORTS FROM STATUTORY BODIES

The Committee noted the:

• Ombudsman NT: Compliance by NT Police Force with Surveillance Devices Act.

• Ombudsman NT: Police (Special Investigative and Other Powers) Act Part 2 2017-18

• Office of the Information Commlsswner Annual Report 2017-18

• Office; of the Commissioner for Public Interest Disclosures Annual Report 2017-18

• Northern Territory Electoral Commission Annual Report 2017-18

Ms Sandra Nelson, MLA

Chair

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Present:

LEGISLATIVE ASSEMBLY OF THE NORTHERN TERRITORY 13th Assembly

Public Accounts Committee

MINUTES OF PROCEEDINGS

Meeting No. 33

12.05 pm, Tuesday, 19 March 2019

Litchfield Room

Ms Sandra Nelson MLA, Chair, Member for Katherine

Mrs Lia Finocchiaro MLA, Member for Spillett

Mr Terry Mills MLA, Deputy Chair, Member for Blain

Mr Tony Sievers MLA, Member for Brennan

Mr Gerry Wood MLA, Member for Nelson Mrs Kate Warden MLA, Member for Sanderson

1. PREVIOUS MINUTES MEETING 32

Mrs Finocchiaro moved and Mr Sievers seconded:

2. CORRESPONDENCE

3. MASTER BUILDERS FIDELITY FUND

The Committee noted correspondence received from the Treasurer on the Master Builders

Fidelity Fund.

The Committee resolved to seek a public briefing from Master Builders and the Department of Treasury and Finance at 12.00 pm on Tuesday 14 May 2019.

4. NATIONAL INTEGRITY CONFERENCE

Mr Wood moved and Mr Sievers seconded:

That the Chair attend the National Integrity Forum and Conference in Melbourne on 3 and

4 April 2019.

That if Ms Nelson is unable to attend the National Integrity Forum and Conference, the Deputy Chair will attend in her place.

COMM2016/00010.285

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5. DARWIN YOUTH JUSTICE CENTRE

The Committee noted the recent government announcement to not continue with the proposed site at Pinelands and directed the committee secretariat to follow up on the outstanding

correspondence with the Minister for Territory Families.

6. SUBORDINATE LEGISLATION

On the motion of Mrs Warden and seconded by Mr Sievers, the Committee resolved:

Pastoral Land Amendment Regulations 2018 (No 24 of 2018)

to write to the Minister to seek advice on whether Regulation 32, by purporting to limit the

Minister's power given under the Act by adding another requirement to those in section 68(5)(c), goes beyond the regulation making power under the Act.

Petroleum (Environment) Amendment Regulations 2018 (No 27 of 2018) & Petroleum (Environment) Further Amendment Regulations 2018 (No 28 of 2018)

to write to the Minister to seek advice on the validity of the regulations regarding hydraulic

fracturing; the timeframe for reporting on flowback fluid and produced water; and the

justification for strict liability offences with a penalty of 200 penalty units.

Plant Health (Fees) Amendment Regulations 2018 (No 29 of 2018)

to write to the Minister to note the absence of any guidance or criteria for the exercise of the power purported to waive fees, exempt payments and refund fees in Regulation 3 and to seek advice on whether the powers contained within Regulation 3 to prescribe fees payable goes beyond the regulation making power of the Act.

7. BUDGET REPAIR

Mrs Finocchiaro moved

That the Public Accounts Committee inquire into the current financial crisis confronting the Northern Territory.

The Committee divided:

Ayes: Mrs Finocchiaro, Mr Mills, Mr Wood Noes: Ms Nelson, Mr Sievers, Mrs Warden

The Chair gave her casting vote with the noes and motion was defeated.

The Committee agreed to revisit this motion at the deliberative meeting to follow the public briefing with the Under Treasurer on Friday 29 March 2019.

8. CONTRACT MANAGEMENT FOR DARWIN CORRECTIONAL CENTRE

Mrs Finocchiaro moved and Mr Mills seconded:

The Public Accounts Committee follow up on recommendations from the Auditor- General's 2017 Report and the former Public Account Committee's report Public Private Partnership Arrangements for the Danwin Correctional Precinct by inviting relevant

representatives to a public briefing to assess to effectiveness of the contract management for the Darwin Correctional Centre.

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The Committee divided:

Ayes: Mrs Finocchiaro, Mr Mills, Mr Wood Noes: Ms Nelson, Mr Sievers, Mrs Warden

The Chair gave her casting vote with the noes and motion was defeated.

The Committee requested the secretariat provide Members with copies of the report ofAuditor- General's 2017 audit of the Darwin Correctional Centre and the report of the former Public Accounts Committee's inquiry into Public Private Partnership Arrangements for the Darwin Correctional Precinct.

The Committee agreed to revisit this motion at the deliberative meeting to follow the public briefing with the Under Treasurer on Friday 29 March 2019.

Meeting closed at 12.45 pm

"Sandra Nelson, MLA

Chair

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Present:

LEGISLATIVE ASSEMBLY OF THE NORTHERN TERRITORY 13th Assembly

Public Accounts Committee

MINUTES OF PROCEEDINGS

Meeting No. 34

10.15 am, Friday, 29 March 2019

Litchfield Room

Ms Sandra Nelson MLA, Chair, Member for Katherine (via teleconference for

the deliberative meeting)

Mr Gary Higgins MLA, Member for Daly

Mr Terry Mills MLA, Deputy Chair, Member for Blain

Mrs Kate Warden MLA, Member for Sanderson

Ms Eloise Noske, Clerk's Associate

1. WELCOME AND APOLOGIES

Mr Wood was an apology for the meeting.

2. PUBLIC BRIEFING FROM UNDER TREASURER

In the absence of the Chair, the Deputy Chair presided over the public briefing.

The Committee heard from the following witnesses:

• Craig Graham: Under Treasurer

• David Braines-Mead: Deputy Under Treasurer - Policy

• Tim McManus: Assistant Under Treasurer - Finance

• Michael Butler: Assistant Under Treasurer - Revenue

The witnesses and public withdrew at 11.15 am and the Committee held a deliberative meeting.

Ms Nelson phoned in for the deliberative meeting.

3. MEMBERSHIP CHANGE

The Committee welcomed Mr Higgins to the Committee and acknowledged the work of

Mrs Finocchiaro.

4. PREVIOUS MINUTES MEETING 32

Ms Nelson moved and Mrs Warden seconded:

That the corrected Minutes of Meeting Number 32 be confirmed.

COMM2016/00010.293 COMM2016/00011.34

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5. PREVIOUS MINUTES MEETING 33

Mrs Warden moved and Ms Nelson seconded:

That the Minutes of Meeting Number 33 as previously confirmed be corrected in the attendance list.

6. CORRESPONDENCE

7. BUDGET REPAIR

The Committee agreed that following the release of the Final Report on Budget Repair and the

Government's response to the report, the Committee will develop a strategy to engage with industry groups and the community about issues related to budget repair.

8. CONTRACT MANAGEMENT FOR DARWIN CORRECTIONAL CENTRE

The Committee agreed to invite the Auditor-General to brief the Committee on progress made in relation to the recommendations contained within the 2017 audit.

Meeting closer at 11 .50 am

Chair

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Present:

LEGISLATIVE ASSEMBLY OF THE NORTHERN TERRITORY 13th Assembly

Public Accounts Committee

MINUTES OF PROCEEDINGS

Meeting No. 35

12.05 pm, Monday, 8 April 2019

Litchfield Room

Ms Sandra Nelson MLA, Chair, Member for Katherine

Mr Terry Mills MLA, Deputy Chair, Member for Blain

Mrs Kate Warden MLA, Member for Sanderson Mr Gerry Wood MLA, Member for Nelson

Apology Mr Gary Higgins MLA, Member for Daly

Guest:' Mrs Julie Crisp, Auditor-General

1. BRIEFING FROM THE AUDITOR-GENERAL

The Auditor-General briefed the Committee on her March 2019 report and outcomes from her 2017 audit of the Darwin Correction Centre.

The Auditor-General withdrew from the meeting.

2. PREVIOUS MINUTES MEETING 34

Ms Nelson moved and Mr Sievers seconded:

That the corrected Minutes of Meeting Number 34 be confirmed.

3. TRANSCRIPT FROM PUBLIC HEARING ON BUDGET REPAIR

Mr Mills moved and Ms Nelson seconded

The Committee authorises the publication of the transcript from the public hearing on Budget Repair on 29 March 2019.

4. CORRESPONDENCE

5. MASTER BUILDERS FIDELITY FUND

The Committee resolved to write to the Master Builders Association of the Northern Territory to

outline the Committee's jurisdiction to inquire into the Fund and explain that the public hearing

is to inform the Committee's understanding of how the scheme operates.

COMM2016/00010.300 COMM2016/00011.35

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6. CONTRACT MANAGEMENT FOR DARWIN CORRECTIONAL CENTRE

Mr Wood moved and Mr Mills seconded:

That the Committee write to the Auditor-General to request that she write to the Correctional Services Commissioner seeking an update on the progress of the implementation of recommendations from her March 2017 audit.

7. BUDGET REPAIR

The Committee agreed to write to the Treasurer to invite Mr John Langoulant AO to provide a

briefing to the Committee at 12 noon on Friday, 3 May 2019 on the Plan for Budget Repair:

Final Report, which is due to be publically released on 16 April 2019 along with the

Government's response to the report:.

Mr Mills moved and Mr Wood seconded that

The briefing to the Committee be a public briefing The Committee divided:

Ayes: Mr Mills, Mr Wood

Noes: Ms Nelson, Mrs Warden, Mr Sievers The motion was defeated.

8. SUBORDINATE LEGISLATION

Mr Wood moved and Mr Mills seconded:

That the Committee write to the Minister for Education regarding the Education

(Infringement Notice) Regulations 2019 (No. 2 of 2019) to seek advice on:

a) whether regulation 5(2)(c) requires infringement notices to threaten enforcement action that is in excess of the penalties provided in the Act and is not provided by law, and so, why this was included in the regulation, and

b) whether the Chief Executive Officer is a person authorised to bring a prosecution under s 283 of the Act and, if not, whether regulation 7 is beyond the power of the Act.

9. NEXT MEETING

12 noon, Friday, 3 May 2019 Meeting ojosed at 1.45 pm

Chair

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LEGISLATIVE ASSEMBLY OF THE NORTHERN TERRITORY 13th Assembly

Public Accounts Committee

MINUTES OF PROCEEDINGS

Meeting No. 36

11.30am, Monday, 1 May 2019

Litchfield Room

Present: Ms Sandra Nelson MLA, Chair, Member for Katherine Mrs Kate Warden MLA, Member for Sanderson Mr Gerry Wood MLA, Member for Nelson

Mr Gary Higgins MLA, Member for Daly

Apologies: Mr Terry Mills MLA, Deputy Chair, Member for Blain

Guest: MrJohnLangoulant

Mr Craig Graham, Under Treasurer

1. BRIEFING FROM JOHN LANGOULANT

Mr John Langoulant and Mr Craig Graham briefed the Committee on A Plan for Budget Repair:

Final Report.

Mr Langoulant and Mr Graham withdrew from the meeting.

2. PREVIOUS MINUTES MEETING 35

Mrs Warden moved and Mr Wood seconded:

3. CORRESPONDENCE

4. PASTORAL LAND AMENDMENT REGULATIONS

Mr Wood moved and Mrs Warden seconded:

That the Committee write to the Minister for Environment and Natural Resources seeking

further advice by Tuesday, 7 May 2019 on whether Regulation 32, by purporting to limit

the Minister's power given under the Act by adding another requirement to those made in

section 68(5)(c), goes beyond the regulation making power under the Act.

5. PETROLEUM (ENVIRONMENT) AMENDMENT REGULATIONS AND PETROLEUM (ENVIRONMENT) FURTHER AMENDMENT REGULATIONS

Mr Higgins moved and Mr Wood seconded:

COMM2019/00002.19

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That the Committee write to the Minister for Primary Industry and Resources seeking a

response by 7 May 2019:

• Noting that at the time the regulation was made (and, given that the 2019

amendments have not yet commenced, to date) extracting hydrocarbons by unconventional means was specifically excluded from the ambit of the Petroleum

Act 1984.

• Noting that the Committee has not been advised of any means by which the commencement of the amendments will retrospectively validate regulations not validly made.

• Expressing the view that laws of doubtful validity should not remain on the statute book, and that the proper regulation of hydraulic fracturing should not be founded on unenforceable laws.

• Seeking a copy of any legal advice provided to the Minister stating that the

regulations were validly made despite the limited definition of 'petroleum', or that they will be retrospectively validated by the commencement of the Petroleum Legislation Amendment Act 2019, or seeking advice on what action is proposed to ensure the validity of the regulation of hydraulic fracturing.

MASTER BUILDERS FIDELITY FUND

The Committee resolved to write to the Master Builders Association of the Northern Territory seeking a response by 9.00 am Tuesday, 7 May 2019 to the invitation to appear at a public hearing on Tuesday, 14 May 2019, noting that it may use its powers to compel attendance if it is not confirmed prior to then.