Adjourned debate on second reading.
(Continued from 28 May. Page 798.)
The Hon. K.T. GRIFFIN (Attorney-General): I thank honourable members
for their contributions to the Bill and for their indications of support
for the second reading. The Hon. Mr Holloway first asked for a copy of
the report in relation to the Notional Values Working Party. I have not
been provided with a copy of that. I am somewhat embar-rassed that I have
not even an answer on that part of the matter raised by the honourable
member, but I undertake to ensure that there is a response to it. I do
not necessarily accept his proposition as a matter of principle that where
a report is referred to in the second reading speech it automati-cally
should be provided. However, I understand the argu-ment which he is putting
and I will ensure that the matter is raised with the Minister responsible
for the administration of the Act, that a reply is forwarded to him and,
if it is possible to provide the report, ensure that that will also be
done, and hopefully we can get that issue resolved quickly.
It was unfortunate that in his second reading contribution the
Hon. Mr Holloway made reference to the member for Mawson in if not expressed
then implied criticism, suggesting that he would benefit from the passing
of this Bill, I suppose, hinting that because he chaired this committee
he would somehow derive a benefit from the Bill which was enacted. I have
not raised the issue with the member for Mawson but, first, I would defend
his honour because he would not have entered into the task if there was
a potential for conflict of interest and, whilst I know little about his
personal affairs, my understanding is that, whilst he does own broad acre
property, it is so far south in the Fleurieu Peninsula that it could not
in any way be affected by the operation of the provisions in this Bill.
That is not stated categorically and without equivocation but
mainly from my presumption of what might be the effect of property values
on his own property so far away from the influence of metropolitan or suburban
Adelaide and its expansion. I think it was unfortunate for that observation
to be made by the honourable member and for him to colour the debate in
a way which I believe is unwarranted.
The honourable member does make some references to the limited
period for objection and indicates that he agrees with that. He places
a great deal of emphasis upon putting in some special provisions for the
office of Valuer-General and, in effect, to elevate the Valuer-General
to the status of Ombuds-man or the Electoral Commissioner, or perhaps in
the future even akin to the Auditor-General when, in fact, there is no
similarity between the public, administrative and other responsibilities
which are carried by those statutory office holders.
One only needs to look at the Electoral Commissioner to recognise
that he has two very important responsibilities and to see why he cannot
be removed except by resolution of both Houses. Now he is appointed by
the Parliament on the recommendation of the Statutory Officers Committee.
He first has a responsibility for running State elections and it is critically
important that the person who holds that office be not only above criticism
but be seen to be above criticism. The second function of the Electoral
Commissioner is to participate as a member of the Electoral Districts Boundaries
Commission. They are two very important functions basic to the fair and
unbiased operation of our electoral system.
If one looks at the Ombudsman, again one can see some special
obligations. The Ombudsman again cannot be removed, except by a resolution
of both Houses of Parliament and, in addition, now is appointed by the
Parliament on the recommendation of the Statutory Officers Committee. The
Ombudsman is so appointed and has that protection because the Ombudsman
exercises a critical function of examining the administrative acts of Executive
Government and making a report to the Parliament as well as requiring corrections
or other action by officers of Executive Government. For that reason it
is important that the Ombudsman be protected from instant dismissal or
intimidation.
The Hon. P. Holloway interjecting:
The Hon. K.T. GRIFFIN: I am not suggesting that. If the honourable
member is going to be mischievous and suggest that that therefore implies
that the Valuer-General will be the subject of intimidation, he has got
it wrong. I am not saying that. I am putting to the Council why we have
special provisions for the Ombudsman and the Electoral Commis-sioner.
The Hon. Ian Gilfillan: What is the current position of the Valuer-General?
The Hon. K.T. GRIFFIN: The current position of the Valuer General
is that he is appointed by the Executive arm of Government and has no special
protection. The vacancy has not been filled for a number of years.
The Hon. P. Holloway interjecting:
The Hon. K.T. GRIFFIN: I do not know why that is in there, but
I will check it and get back.
The Hon. Ian Gilfillan interjecting:
The Hon. K.T. GRIFFIN: I will take it on notice and check it
so that we can deal with it in Committee. In the earlier days of the colony
and the State the Valuer-General may have had some special responsibilities,
but now the Valuer-General has basically only the obligation to provide
a valuation of the State, which is the basis upon which the land tax, other
than land tax on the principal place of residence, is established and council
rated. In every other jurisdiction, I am told, the Valuer-General is an
officer of the Executive Government.
If we get to the point of the Valuer-General's being a statutory
officer appointed in the same manner as the Electoral Commissioner and
the Ombudsman, in the current environment of Government, public policy
and public administration you have to ask similar questions about the Commissioner
for Equal Opportunity and other officers who might be named in legislation.
For those reasons the Govern-ment is not supportive of the amendment that
will be moved in Committee by the Hon. Paul Holloway; but apart from that
we indicate our appreciation for support for the second reading.
Bill read a second time.
In Committee.
Clauses 1 and 2 passed.
Clause 3.
The Hon. P. HOLLOWAY: I move:
Page 1, after line 21óInsert:
(a1) by striking out from subsection (1) `by notice published
in the Gazette' and substituting `on a recommendation made by resolution
of both Houses of Parliament';
(a2) by inserting after subsection (1) the following subsection:
(1a) On a vacancy occurring in the office of Valuer-General,
the matter of inquiring into and reporting on a suitable person for appointment
to the vacant office is referred by force of this subsection to the Statutory
Officers Committee established under the Parliamentary Committees Act 1991,;
The two amendments relate to the appointment of the Valuer-General.
The first amendment provides that the Valuer-General should be appointed
by the Statutory Officers Committee established under the Parliament, so
I will deal with it first. The Attorney-General has just tried to draw
a distinction between the position of Valuer-General and other office holders
such as the Ombudsman and the Electoral Commissioner. I do not agree with
his distinction. During the second reading debate on the Bill I read out
an extract from the original explanation of the Government back in 1971
when the Bill was introduced. It was introduced by the Hon. Bert Shard,
then Chief Secretary, who stated:
This Bill makes him [the Valuer-General] an officer responsible
to Parliament and frees him from any suggestion of political bias.
That is the question. The Valuer-General has to value all of the property
within the State. Upon his valuation are raised hundreds of millions of
dollars in taxation, stamp duties, sewerage rates, local government rates,
and so on. So it is important that the Valuer-General should be above the
political process and not subject to any pressure in any way as to the
exercise of his judgment. There are hundreds of millions of dollars of
revenue to Government, both State and local, at stake.
It is important that we recognise that with the appointment of
this position. As I indicated when debating this Bill last, when the budget
was brought down last week we note that the Government has decided to extend
the property franchise, notwithstanding that the now Government back in
1992 vigorously opposed the water rating system at the time, which for
100 years previously had been based on a property tax. The then Opposition
was very vocal and outspoken at the time. Subsequently we have changed
the water rating system to a user-pays system, but nevertheless we now
have the Government in its most recent budget going back to a property-based
tax to fund emergency services. The merits of that will be debated in this
place at the appropriate time, but if successful it will again extend the
importance of the valuation that this Government does as a taxing base.
The Opposition believes that we should recognise the independence
of the position in two ways: first, make the appointment of the Valuer-General
subject to the Statutory Officers Committee of Parliament in the way other
officers are appointed; and, secondly, reject the amendment in the Bill
which seeks to make it a five year contract appointment instead of an appointment
until retirement. I support the amendment.
The Hon. K.T. GRIFFIN: Concerning the question raised by the
Hon. Mr Gilfillan during the second reading stage, I acknowledge that there
is a provision in the Act whereby the Valuer-General is appointed until
he or she attains the age of 65 years and whereby he or she may be removed
from office upon the presentation of an address by both Houses of Parliament
praying for that person's removal from office, and a provision for suspension
is included in section 9 of the principal Act.
I confess that I am not familiar with all the reasons why the
then Chief Secretary would have wanted to move for this, except that perhaps
then there was a much heavier depend-ence upon property for taxation purposes
and less opportunity for review. The Valuation of Land Act contains a number
of provisions which I think were enacted subsequent to the 1971 amendment
by the then Chief Secretary and which provide for a review of the valuations.
So it is not as though the valuations stand for all time without challenge:
any Valuer-General's decision is subject to review in relation to a particular
piece of real estate.
Although there is that current provision in section 9, the Government
has taken the view that it is now time to rethink the rationale for appointment
of the Valuer-General under the terms and conditions specified in the Act
and to move to something which is more flexible, keeping in mind that there
are adequate opportunities for independent review of valuations and that
valuation principles are well set out in the Act, and that, apart from
the normal mechanisms for a review provided in the Valuation of Land Act,
judicial review applies to the work undertaken by the Valuer-General. The
Govern-ment opposes the amendment proposed
by the Hon. Mr Holloway.
The Hon. IAN GILFILLAN: I support the amendment. I think that
the intention expressed in the Act is quite clear and I can see no reason
to depart from it in such a dramatic way. I do not think the Attorney-General
should be too sensitive about it. It is common knowledge that people are
appointed to positions by the Government of the day because they are favoured
by the Government of the day for that position.
The Hon. K.T. Griffin: Some may be, but all aren't.
The Hon. IAN GILFILLAN: They certainly would not be appointed
because they are out of favour with the Govern-ment of the day. If one
takes the reverse argument one can see the logic of my comment. It appears
to me that the person who is qualified to be Valuer-General will be competent
to be Valuer-General for a reasonably extended term. It is not as though
they burn out over five years. It is a task that I think one could reasonably
expect to fulfil until reaching retirement age. Also, as I understand it,
the provi-sion in the current Act will remain, that both Houses can remove
the Valuer-General, for whatever reason. We support the amendment.
I suspect that a student of Hansard studying my second reading
speech would have noted my concern, from the LGA, that the valuations of
different authorities can be applied retrospectively. I do not recall hearing
the Attorney in his concluding remarks address that matter. He can correct
me if I am wrong, but if I am correctó
The Hon. K.T. Griffin: I did not refer to that.
The Hon. IAN GILFILLAN: At the right time can the Attorney address
this matter. I am not sure which clause addresses it specifically, except
possibly the last one, clause 17. I do not want the Bill to slide out of
the Committee stage without this being addressed.
The Hon. T. CROTHERS: I, too, rise to support the amendment.
In doing so I think there is some rationale that underpins that which we
say. The Attorney-General in his contribution alluded to the fact that
the Valuer-General was appointed until the age of 65 years and that such
person may only be removed by addresses carried by both Houses of the Parliament,
so as to give that person protection under the present Act. He then said
that he did not know why the Chief Secretary of the day saw fit to include
a provision such as that in the Bill.
I think the historical precedent goes further back than that.
It probably goes back to the time of the South Australia Company when land
values were not only determined in England but (I seem to recall as part
of my historical reading) when, on a number of occasions, the then Secretary
for the colonies, Lord Glenelg, overturned the legislative processes of
what was then an infant parliamentary Chamber, albeit not with the same
power that this one has now, and certainly overturned decisions of the
then governing company, which was, of course, the South Australia Company.
Up until recentlyócertainly until just prior to the Second World
War and even after itómuch of the property in the square mile of Adelaide
was still owned by interests located in the United Kingdom. It may well
be that the precedent was that, when this Parliament assumed full responsibility,
even before the Statutes of Westminster, when it assumed pretty well full
responsibility for its own destiny, whoever was the author responsible
for the Act determined to put in place a proposition which in fact had
only been neutered by a direct Act of this Parliament, so as to forestall
any intervention or interference from the other side of the world. I simply
proffer that as as good a piece of rationale as any for that which underpins
the present state of the Act and the reference it makes to the Valuer-General's
appointment. I support the amendment.
The Hon. P. HOLLOWAY: I make one point in response to the Attorney's
earlier comments. The Attorney indicated that we now have, under subsequent
changes to the Act, the provision for independent reviews against the Valuer-General's
decision. I would suggest that most of those independent reviews would
be against high values of assessment by the Valuer-General, because if
the Valuer-General assesses your property at a value which you consider
too high you will have to pay higher council rates, sewerage rates and
so on. It certainly is proffered that we should have some sort of independent
review against such processes. Where the real problem and pressure from
the Government may come in is if there are people who wish to keep their
values low to reduce such taxes and charges. Of course, it is highly unlikelyó
The Hon. K.T. Griffin interjecting:
The Hon. P. HOLLOWAY: Who will ask for an independent review
if pressure is brought to bear on a Valuer-General to reduce values to
reduce the cross people have to bear?
The Hon. K.T. Griffin interjecting:
The Hon. P. HOLLOWAY: Well, maybe so, but earlier Parliaments
have decided that they will ensure that Valuers-General are absolutely
free from any sort of political pressure by making the appointment a life
appointment and by providing that the Valuer-General may be removed only
by an address of both Houses. Here the Government seeks to turn that into
a five year term. Clearly, the Valuer-General is much more likely to be
subject to the pressure of the Govern-ment of the day, particularly if
that person's term is nearing the end. The most important point of the
Opposition's amendment is that this appointment should be restored to an
appointment until retirement. The second part of itóto make that appointment
subject to the relevant committee of Parliament, the Statutory Officers
Committeeóis perhaps less important. On behalf of the Opposition, the point
I want to make is that we believe that, for a position as important as
this, we should stay with the wishes of Parliament over the past many yearsóthat
the position should be independent and be seen to be independent.
The Hon. K.T. GRIFFIN: The Government does not accept that it
is an office which is so important that it requires the protections to
which the honourable member referred or that it will, in fact, be open
to abuse. The proposition raised by the Hon. Mr Holloway about influence
by Government to keep valuations down is bizarre in the extreme. In fact,
it is likely to be a very serious criminal offence under the Criminal Law
Consolidation Act. However, if the numbers are in favour of the amendment,
I indicate that, if it is carried on the voices, I will not be seeking
to divide. It will undoub-tedly go to conference, and we can resolve the
issues there. In terms of the Hon. Mr Gilfillan's matter, I do not have
the answer. However, I suggest that, once we have dealt with the amendments,
I will then report progress and see whether I can get a reply by tomorrow.
Amendment carried; clause as amended passed.
Clause 4 passed.
Clause 5.
The Hon. P. HOLLOWAY: I move:
Page 2ó
Lines 3 to 7óLeave out all words in these lines after `by striking
out subsection (1)'.
Lines 15 to 24óLeave out all words in these lines.
These amendments flow on from earlier amendments I have already discussed.
Amendments carried; clause as amended passed.
Progress reported; Committee to sit again.
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