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| Ian Gilfillan Australian Democrats Member of the Legislative Council |
Parliament Index |
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METROPOLITAN FIRE SERVICE
The Hon. IAN GILFILLAN: I seek leave to make a brief explanation before asking the Attorney a question about the Auditor-General's Report on the South Australian Metropolitan Fire Service.
Leave granted.
The Hon. IAN GILFILLAN: The Auditor-General's Report states:
Last year's general purpose financial report included a note disclosure regarding an after balance date event relating to an agreement that the State Supply Board had signed with Lowes Industries (North Island) Limited for the supply of 16 fire appliances to the SAMFS at a cost of $5. 5 million. It was reported that Lowes had appointed a liquidator for the purposes of winding up the affairs of the company and distributing the company's assets. At the time the SAMFS had a financial exposure to Lowes through non-completion of the contract. . . The SAMFS received delivery of four fire appliances in February 1999 with a further two fire appliances delivered in June 1999. The total payment made to Lowes was approximately $ 4 million.
The SAMFS ordered 16 fire appliances, received six, but had paid $4 million. I ask the Attorney:
1. What, if any, Metropolitan Fire Service personnel travelled to New Zealand to visit Lowes? If so, who went, how many, at what cost, who paid, and when did they travel?
2. In relation to the financial consequences, what justification was there for the advance payment of $4 million, which is three-quarters of the total indebtedness to Lowes Industries, when only six of the 16 fire appliances were supplied?
3. Was any security or guarantee received to cover the advance payment? If not, why not?
The Hon. K.T. GRIFFIN (Attorney-General): I will refer those questions to my colleague in another place and bring back a reply.