❓ Question regarding the Leader of the Opposition's claims about the Western Power Managing Director's contractual arrangements. The Minister defends the appointment and criticizes the Opposition's attack, highlighting the importance of the role and the board's involvement.
AnsweredQoN 1067Legislative Assembly
QuestionView source ↗
I refer to the Leader of the Opposition’s claim that the Managing Director of Western Power’s contractual arrangements are shonky, as reported in the Channel Seven news on 5 September 2003. Will the minister confirm the accuracy of this claim? Mr E.S. RIPPER
AnswerView source ↗
The appointment of the Managing Director of Western Power is a very significant appointment for Western Australia because Western Power is a major trading enterprise with more than 2 580 employees, close to 850 000 customers and a turnover of nearly $1.7 billion. The managing director must not only run that organisation and take responsibility for the delivery of an essential service to those 850 000 customers but also prepare the organisation for and participate in the creation of the four successor publicly owned corporations following the Government’s electricity reform. I remind members that the reform aims to deliver investment, jobs and economic growth in the best long-term interests of this State. The Leader of the Opposition has described the managing director’s contractual arrangements as shonky. He has also described the managing director’s contractual arrangements as the worst example of political interference in the conduct and operations of a government organisation and the worst example of the sort of financial and salary arrangements for a chief executive. He asserted that the managing director’s performance bonus was more than $100 000. He said that it smacked of Laurie Connell and the 1980s. He has also questioned the professional credentials of the Western Power managing director. Even allowing for the Leader of the Opposition’s well-known propensity to embellish and exaggerate, this is the most despicable personal attack on a senior professional public servant in years. It is not only an attack on the managing director but also a slur on the integrity of the chairman of the board of Western Power, Malcolm Macpherson, and each of the board members who endorsed the managing director’s appointment - Mr Warren Murphy, Ms Jenny Seabrook, Mr Neil Hamilton and Dr Paul Moy. As I said earlier, the managing director’s contract was negotiated by the Western Power board with the advice and assistance of consulting and recruiting firm Korn/Ferry International Pty Ltd. Although it is undoubtedly a substantial package when measured against the Western Australian public sector, it is commensurate with packages elsewhere in the energy sector. Quite frankly, in dealing with the delivery of an essential service and a complex and substantial reform, Western Australia deserves the best. We should not skimp on the delivery of an essential service or on a complex and substantial reform program. There has also been debate about the remuneration of other senior executives of Western Power, the appointment of most of whom predates the change of government. As the Leader of the Opposition knows well, under the Electricity Corporation Act I have no authority over senior executive salaries; it is a matter for the board. In the interests of accountability, the salary packages are identified each year in the Western Power annual report. This is the first year that the executives have been identified by name. However, I have the power to accept or reject recommendations on the salary of the managing director and I have exercised that right on a previous occasion. In 2001 I was asked to approve an 11.7 per cent pay rise for the former managing director. I refused on the basis that it was inconsistent with wages policy and lacked sufficient justification. I have with me a chart that I would like members to look at. It is not a chart of the Argentinean inflation rate. It is not a chart of the unfunded spending promises made by the coalition. It is a chart indicating the pay rises granted to the former managing director by the former Minister for Energy. It is worth running through this chart. The former minister granted five pay rises of seven per cent, nine per cent, six per cent, eight per cent and 11 per cent in five years to the former managing director. Those were the five decisions that the Leader of the Opposition made when he was Minister for Energy between 1995 and 2000. Mr C.J. Barnett: He was full time and lived in Western Australia and did a great job. Mr E.S. RIPPER: The Leader of the Opposition said that he was full time, lived in Western Australia and did a great job. Does he stand by those decisions? Mr C.J. Barnett: Let’s suspend standing orders and we’ll debate it. Mr E.S. RIPPER: Does the Leader of the Opposition stand by those decisions? Mr C.J. Barnett: What a fool! Mr E.S. RIPPER: The Leader of the Opposition is too gutless to stand by his decisions. I appreciate that taxpayers will find a performance bonus unconventional, even though a trading enterprise is required to act in a commercial fashion. A bonus linked to stringent performance criteria is far more rigorous than the automatic pay increases granted by the former Minister for Energy. I do not believe there can be any justification for taxpayers stumping up for a Weld Club membership for the former managing director. The Leader of the Opposition approved those arrangements and gave all those pay increases, yet he comes into this place with the hide to call arrangements for the new managing director shonky.
Mr E.S. RIPPER replied: The appointment of the Managing Director of Western Power is a very significant appointment for Western Australia because Western Power is a major trading enterprise with more than 2 580 employees, close to 850 000 customers and a turnover of nearly $1.7 billion. The managing director must not only run that organisation and take responsibility for the delivery of an essential service to those 850 000 customers but also prepare the organisation for and participate in the creation of the four successor publicly owned corporations following the Government’s electricity reform. I remind members that the reform aims to deliver investment, jobs and economic growth in the best long-term interests of this State. The Leader of the Opposition has described the managing director’s contractual arrangements as shonky. He has also described the managing director’s contractual arrangements as the worst example of political interference in the conduct and operations of a government organisation and the worst example of the sort of financial and salary arrangements for a chief executive. He asserted that the managing director’s performance bonus was more than $100 000. He said that it smacked of Laurie Connell and the 1980s. He has also questioned the professional credentials of the Western Power managing director. Even allowing for the Leader of the Opposition’s well-known propensity to embellish and exaggerate, this is the most despicable personal attack on a senior professional public servant in years. It is not only an attack on the managing director but also a slur on the integrity of the chairman of the board of Western Power, Malcolm Macpherson, and each of the board members who endorsed the managing director’s appointment - Mr Warren Murphy, Ms Jenny Seabrook, Mr Neil Hamilton and Dr Paul Moy. As I said earlier, the managing director’s contract was negotiated by the Western Power board with the advice and assistance of consulting and recruiting firm Korn/Ferry International Pty Ltd. Although it is undoubtedly a substantial package when measured against the Western Australian public sector, it is commensurate with packages elsewhere in the energy sector. Quite frankly, in dealing with the delivery of an essential service and a complex and substantial reform, Western Australia deserves the best. We should not skimp on the delivery of an essential service or on a complex and substantial reform program. There has also been debate about the remuneration of other senior executives of Western Power, the appointment of most of whom predates the change of government. As the Leader of the Opposition knows well, under the Electricity Corporation Act I have no authority over senior executive salaries; it is a matter for the board. In the interests of accountability, the salary packages are identified each year in the Western Power annual report. This is the first year that the executives have been identified by name. However, I have the power to accept or reject recommendations on the salary of the managing director and I have exercised that right on a previous occasion. In 2001 I was asked to approve an 11.7 per cent pay rise for the former managing director. I refused on the basis that it was inconsistent with wages policy and lacked sufficient justification. I have with me a chart that I would like members to look at. It is not a chart of the Argentinean inflation rate. It is not a chart of the unfunded spending promises made by the coalition. It is a chart indicating the pay rises granted to the former managing director by the former Minister for Energy. It is worth running through this chart. The former minister granted five pay rises of seven per cent, nine per cent, six per cent, eight per cent and 11 per cent in five years to the former managing director. Those were the five decisions that the Leader of the Opposition made when he was Minister for Energy between 1995 and 2000. Mr C.J. Barnett: He was full time and lived in Western Australia and did a great job. Mr E.S. RIPPER: The Leader of the Opposition said that he was full time, lived in Western Australia and did a great job. Does he stand by those decisions? Mr C.J. Barnett: Let’s suspend standing orders and we’ll debate it. Mr E.S. RIPPER: Does the Leader of the Opposition stand by those decisions? Mr C.J. Barnett: What a fool! Mr E.S. RIPPER: The Leader of the Opposition is too gutless to stand by his decisions. I appreciate that taxpayers will find a performance bonus unconventional, even though a trading enterprise is required to act in a commercial fashion. A bonus linked to stringent performance criteria is far more rigorous than the automatic pay increases granted by the former Minister for Energy. I do not believe there can be any justification for taxpayers stumping up for a Weld Club membership for the former managing director. The Leader of the Opposition approved those arrangements and gave all those pay increases, yet he comes into this place with the hide to call arrangements for the new managing director shonky.
The appointment of the Managing Director of Western Power is a very significant appointment for Western Australia because Western Power is a major trading enterprise with more than 2 580 employees, close to 850 000 customers and a turnover of nearly $1.7 billion. The managing director must not only run that organisation and take responsibility for the delivery of an essential service to those 850 000 customers but also prepare the organisation for and participate in the creation of the four successor publicly owned corporations following the Government’s electricity reform. I remind members that the reform aims to deliver investment, jobs and economic growth in the best long-term interests of this State. The Leader of the Opposition has described the managing director’s contractual arrangements as shonky. He has also described the managing director’s contractual arrangements as the worst example of political interference in the conduct and operations of a government organisation and the worst example of the sort of financial and salary arrangements for a chief executive. He asserted that the managing director’s performance bonus was more than $100 000. He said that it smacked of Laurie Connell and the 1980s. He has also questioned the professional credentials of the Western Power managing director. Even allowing for the Leader of the Opposition’s well-known propensity to embellish and exaggerate, this is the most despicable personal attack on a senior professional public servant in years. It is not only an attack on the managing director but also a slur on the integrity of the chairman of the board of Western Power, Malcolm Macpherson, and each of the board members who endorsed the managing director’s appointment - Mr Warren Murphy, Ms Jenny Seabrook, Mr Neil Hamilton and Dr Paul Moy. As I said earlier, the managing director’s contract was negotiated by the Western Power board with the advice and assistance of consulting and recruiting firm Korn/Ferry International Pty Ltd. Although it is undoubtedly a substantial package when measured against the Western Australian public sector, it is commensurate with packages elsewhere in the energy sector. Quite frankly, in dealing with the delivery of an essential service and a complex and substantial reform, Western Australia deserves the best. We should not skimp on the delivery of an essential service or on a complex and substantial reform program. There has also been debate about the remuneration of other senior executives of Western Power, the appointment of most of whom predates the change of government. As the Leader of the Opposition knows well, under the Electricity Corporation Act I have no authority over senior executive salaries; it is a matter for the board. In the interests of accountability, the salary packages are identified each year in the Western Power annual report. This is the first year that the executives have been identified by name. However, I have the power to accept or reject recommendations on the salary of the managing director and I have exercised that right on a previous occasion. In 2001 I was asked to approve an 11.7 per cent pay rise for the former managing director. I refused on the basis that it was inconsistent with wages policy and lacked sufficient justification. I have with me a chart that I would like members to look at. It is not a chart of the Argentinean inflation rate. It is not a chart of the unfunded spending promises made by the coalition. It is a chart indicating the pay rises granted to the former managing director by the former Minister for Energy. It is worth running through this chart. The former minister granted five pay rises of seven per cent, nine per cent, six per cent, eight per cent and 11 per cent in five years to the former managing director. Those were the five decisions that the Leader of the Opposition made when he was Minister for Energy between 1995 and 2000. Mr C.J. Barnett: He was full time and lived in Western Australia and did a great job. Mr E.S. RIPPER: The Leader of the Opposition said that he was full time, lived in Western Australia and did a great job. Does he stand by those decisions? Mr C.J. Barnett: Let’s suspend standing orders and we’ll debate it. Mr E.S. RIPPER: Does the Leader of the Opposition stand by those decisions? Mr C.J. Barnett: What a fool! Mr E.S. RIPPER: The Leader of the Opposition is too gutless to stand by his decisions. I appreciate that taxpayers will find a performance bonus unconventional, even though a trading enterprise is required to act in a commercial fashion. A bonus linked to stringent performance criteria is far more rigorous than the automatic pay increases granted by the former Minister for Energy. I do not believe there can be any justification for taxpayers stumping up for a Weld Club membership for the former managing director. The Leader of the Opposition approved those arrangements and gave all those pay increases, yet he comes into this place with the hide to call arrangements for the new managing director shonky.
The Leader of the Opposition has described the managing director’s contractual arrangements as shonky. He has also described the managing director’s contractual arrangements as the worst example of political interference in the conduct and operations of a government organisation and the worst example of the sort of financial and salary arrangements for a chief executive. He asserted that the managing director’s performance bonus was more than $100 000. He said that it smacked of Laurie Connell and the 1980s. He has also questioned the professional credentials of the Western Power managing director. Even allowing for the Leader of the Opposition’s well-known propensity to embellish and exaggerate, this is the most despicable personal attack on a senior professional public servant in years. It is not only an attack on the managing director but also a slur on the integrity of the chairman of the board of Western Power, Malcolm Macpherson, and each of the board members who endorsed the managing director’s appointment - Mr Warren Murphy, Ms Jenny Seabrook, Mr Neil Hamilton and Dr Paul Moy. As I said earlier, the managing director’s contract was negotiated by the Western Power board with the advice and assistance of consulting and recruiting firm Korn/Ferry International Pty Ltd. Although it is undoubtedly a substantial package when measured against the Western Australian public sector, it is commensurate with packages elsewhere in the energy sector. Quite frankly, in dealing with the delivery of an essential service and a complex and substantial reform, Western Australia deserves the best. We should not skimp on the delivery of an essential service or on a complex and substantial reform program. There has also been debate about the remuneration of other senior executives of Western Power, the appointment of most of whom predates the change of government. As the Leader of the Opposition knows well, under the Electricity Corporation Act I have no authority over senior executive salaries; it is a matter for the board. In the interests of accountability, the salary packages are identified each year in the Western Power annual report. This is the first year that the executives have been identified by name. However, I have the power to accept or reject recommendations on the salary of the managing director and I have exercised that right on a previous occasion. In 2001 I was asked to approve an 11.7 per cent pay rise for the former managing director. I refused on the basis that it was inconsistent with wages policy and lacked sufficient justification. I have with me a chart that I would like members to look at. It is not a chart of the Argentinean inflation rate. It is not a chart of the unfunded spending promises made by the coalition. It is a chart indicating the pay rises granted to the former managing director by the former Minister for Energy. It is worth running through this chart. The former minister granted five pay rises of seven per cent, nine per cent, six per cent, eight per cent and 11 per cent in five years to the former managing director. Those were the five decisions that the Leader of the Opposition made when he was Minister for Energy between 1995 and 2000. Mr C.J. Barnett: He was full time and lived in Western Australia and did a great job. Mr E.S. RIPPER: The Leader of the Opposition said that he was full time, lived in Western Australia and did a great job. Does he stand by those decisions? Mr C.J. Barnett: Let’s suspend standing orders and we’ll debate it. Mr E.S. RIPPER: Does the Leader of the Opposition stand by those decisions? Mr C.J. Barnett: What a fool! Mr E.S. RIPPER: The Leader of the Opposition is too gutless to stand by his decisions. I appreciate that taxpayers will find a performance bonus unconventional, even though a trading enterprise is required to act in a commercial fashion. A bonus linked to stringent performance criteria is far more rigorous than the automatic pay increases granted by the former Minister for Energy. I do not believe there can be any justification for taxpayers stumping up for a Weld Club membership for the former managing director. The Leader of the Opposition approved those arrangements and gave all those pay increases, yet he comes into this place with the hide to call arrangements for the new managing director shonky.
As I said earlier, the managing director’s contract was negotiated by the Western Power board with the advice and assistance of consulting and recruiting firm Korn/Ferry International Pty Ltd. Although it is undoubtedly a substantial package when measured against the Western Australian public sector, it is commensurate with packages elsewhere in the energy sector. Quite frankly, in dealing with the delivery of an essential service and a complex and substantial reform, Western Australia deserves the best. We should not skimp on the delivery of an essential service or on a complex and substantial reform program. There has also been debate about the remuneration of other senior executives of Western Power, the appointment of most of whom predates the change of government. As the Leader of the Opposition knows well, under the Electricity Corporation Act I have no authority over senior executive salaries; it is a matter for the board. In the interests of accountability, the salary packages are identified each year in the Western Power annual report. This is the first year that the executives have been identified by name. However, I have the power to accept or reject recommendations on the salary of the managing director and I have exercised that right on a previous occasion. In 2001 I was asked to approve an 11.7 per cent pay rise for the former managing director. I refused on the basis that it was inconsistent with wages policy and lacked sufficient justification. I have with me a chart that I would like members to look at. It is not a chart of the Argentinean inflation rate. It is not a chart of the unfunded spending promises made by the coalition. It is a chart indicating the pay rises granted to the former managing director by the former Minister for Energy. It is worth running through this chart. The former minister granted five pay rises of seven per cent, nine per cent, six per cent, eight per cent and 11 per cent in five years to the former managing director. Those were the five decisions that the Leader of the Opposition made when he was Minister for Energy between 1995 and 2000. Mr C.J. Barnett: He was full time and lived in Western Australia and did a great job. Mr E.S. RIPPER: The Leader of the Opposition said that he was full time, lived in Western Australia and did a great job. Does he stand by those decisions? Mr C.J. Barnett: Let’s suspend standing orders and we’ll debate it. Mr E.S. RIPPER: Does the Leader of the Opposition stand by those decisions? Mr C.J. Barnett: What a fool! Mr E.S. RIPPER: The Leader of the Opposition is too gutless to stand by his decisions. I appreciate that taxpayers will find a performance bonus unconventional, even though a trading enterprise is required to act in a commercial fashion. A bonus linked to stringent performance criteria is far more rigorous than the automatic pay increases granted by the former Minister for Energy. I do not believe there can be any justification for taxpayers stumping up for a Weld Club membership for the former managing director. The Leader of the Opposition approved those arrangements and gave all those pay increases, yet he comes into this place with the hide to call arrangements for the new managing director shonky.
There has also been debate about the remuneration of other senior executives of Western Power, the appointment of most of whom predates the change of government. As the Leader of the Opposition knows well, under the Electricity Corporation Act I have no authority over senior executive salaries; it is a matter for the board. In the interests of accountability, the salary packages are identified each year in the Western Power annual report. This is the first year that the executives have been identified by name. However, I have the power to accept or reject recommendations on the salary of the managing director and I have exercised that right on a previous occasion. In 2001 I was asked to approve an 11.7 per cent pay rise for the former managing director. I refused on the basis that it was inconsistent with wages policy and lacked sufficient justification. I have with me a chart that I would like members to look at. It is not a chart of the Argentinean inflation rate. It is not a chart of the unfunded spending promises made by the coalition. It is a chart indicating the pay rises granted to the former managing director by the former Minister for Energy. It is worth running through this chart. The former minister granted five pay rises of seven per cent, nine per cent, six per cent, eight per cent and 11 per cent in five years to the former managing director. Those were the five decisions that the Leader of the Opposition made when he was Minister for Energy between 1995 and 2000. Mr C.J. Barnett: He was full time and lived in Western Australia and did a great job. Mr E.S. RIPPER: The Leader of the Opposition said that he was full time, lived in Western Australia and did a great job. Does he stand by those decisions? Mr C.J. Barnett: Let’s suspend standing orders and we’ll debate it. Mr E.S. RIPPER: Does the Leader of the Opposition stand by those decisions? Mr C.J. Barnett: What a fool! Mr E.S. RIPPER: The Leader of the Opposition is too gutless to stand by his decisions. I appreciate that taxpayers will find a performance bonus unconventional, even though a trading enterprise is required to act in a commercial fashion. A bonus linked to stringent performance criteria is far more rigorous than the automatic pay increases granted by the former Minister for Energy. I do not believe there can be any justification for taxpayers stumping up for a Weld Club membership for the former managing director. The Leader of the Opposition approved those arrangements and gave all those pay increases, yet he comes into this place with the hide to call arrangements for the new managing director shonky.
I have with me a chart that I would like members to look at. It is not a chart of the Argentinean inflation rate. It is not a chart of the unfunded spending promises made by the coalition. It is a chart indicating the pay rises granted to the former managing director by the former Minister for Energy. It is worth running through this chart. The former minister granted five pay rises of seven per cent, nine per cent, six per cent, eight per cent and 11 per cent in five years to the former managing director. Those were the five decisions that the Leader of the Opposition made when he was Minister for Energy between 1995 and 2000. Mr C.J. Barnett: He was full time and lived in Western Australia and did a great job. Mr E.S. RIPPER: The Leader of the Opposition said that he was full time, lived in Western Australia and did a great job. Does he stand by those decisions? Mr C.J. Barnett: Let’s suspend standing orders and we’ll debate it. Mr E.S. RIPPER: Does the Leader of the Opposition stand by those decisions? Mr C.J. Barnett: What a fool! Mr E.S. RIPPER: The Leader of the Opposition is too gutless to stand by his decisions. I appreciate that taxpayers will find a performance bonus unconventional, even though a trading enterprise is required to act in a commercial fashion. A bonus linked to stringent performance criteria is far more rigorous than the automatic pay increases granted by the former Minister for Energy. I do not believe there can be any justification for taxpayers stumping up for a Weld Club membership for the former managing director. The Leader of the Opposition approved those arrangements and gave all those pay increases, yet he comes into this place with the hide to call arrangements for the new managing director shonky.
Mr C.J. Barnett: He was full time and lived in Western Australia and did a great job. Mr E.S. RIPPER: The Leader of the Opposition said that he was full time, lived in Western Australia and did a great job. Does he stand by those decisions? Mr C.J. Barnett: Let’s suspend standing orders and we’ll debate it. Mr E.S. RIPPER: Does the Leader of the Opposition stand by those decisions? Mr C.J. Barnett: What a fool! Mr E.S. RIPPER: The Leader of the Opposition is too gutless to stand by his decisions. I appreciate that taxpayers will find a performance bonus unconventional, even though a trading enterprise is required to act in a commercial fashion. A bonus linked to stringent performance criteria is far more rigorous than the automatic pay increases granted by the former Minister for Energy. I do not believe there can be any justification for taxpayers stumping up for a Weld Club membership for the former managing director. The Leader of the Opposition approved those arrangements and gave all those pay increases, yet he comes into this place with the hide to call arrangements for the new managing director shonky.
Mr E.S. RIPPER: The Leader of the Opposition said that he was full time, lived in Western Australia and did a great job. Does he stand by those decisions? Mr C.J. Barnett: Let’s suspend standing orders and we’ll debate it. Mr E.S. RIPPER: Does the Leader of the Opposition stand by those decisions? Mr C.J. Barnett: What a fool! Mr E.S. RIPPER: The Leader of the Opposition is too gutless to stand by his decisions. I appreciate that taxpayers will find a performance bonus unconventional, even though a trading enterprise is required to act in a commercial fashion. A bonus linked to stringent performance criteria is far more rigorous than the automatic pay increases granted by the former Minister for Energy. I do not believe there can be any justification for taxpayers stumping up for a Weld Club membership for the former managing director. The Leader of the Opposition approved those arrangements and gave all those pay increases, yet he comes into this place with the hide to call arrangements for the new managing director shonky.
Mr C.J. Barnett: Let’s suspend standing orders and we’ll debate it. Mr E.S. RIPPER: Does the Leader of the Opposition stand by those decisions? Mr C.J. Barnett: What a fool! Mr E.S. RIPPER: The Leader of the Opposition is too gutless to stand by his decisions. I appreciate that taxpayers will find a performance bonus unconventional, even though a trading enterprise is required to act in a commercial fashion. A bonus linked to stringent performance criteria is far more rigorous than the automatic pay increases granted by the former Minister for Energy. I do not believe there can be any justification for taxpayers stumping up for a Weld Club membership for the former managing director. The Leader of the Opposition approved those arrangements and gave all those pay increases, yet he comes into this place with the hide to call arrangements for the new managing director shonky.
Mr E.S. RIPPER: Does the Leader of the Opposition stand by those decisions? Mr C.J. Barnett: What a fool! Mr E.S. RIPPER: The Leader of the Opposition is too gutless to stand by his decisions. I appreciate that taxpayers will find a performance bonus unconventional, even though a trading enterprise is required to act in a commercial fashion. A bonus linked to stringent performance criteria is far more rigorous than the automatic pay increases granted by the former Minister for Energy. I do not believe there can be any justification for taxpayers stumping up for a Weld Club membership for the former managing director. The Leader of the Opposition approved those arrangements and gave all those pay increases, yet he comes into this place with the hide to call arrangements for the new managing director shonky.
Mr C.J. Barnett: What a fool! Mr E.S. RIPPER: The Leader of the Opposition is too gutless to stand by his decisions. I appreciate that taxpayers will find a performance bonus unconventional, even though a trading enterprise is required to act in a commercial fashion. A bonus linked to stringent performance criteria is far more rigorous than the automatic pay increases granted by the former Minister for Energy. I do not believe there can be any justification for taxpayers stumping up for a Weld Club membership for the former managing director. The Leader of the Opposition approved those arrangements and gave all those pay increases, yet he comes into this place with the hide to call arrangements for the new managing director shonky.
Mr E.S. RIPPER: The Leader of the Opposition is too gutless to stand by his decisions. I appreciate that taxpayers will find a performance bonus unconventional, even though a trading enterprise is required to act in a commercial fashion. A bonus linked to stringent performance criteria is far more rigorous than the automatic pay increases granted by the former Minister for Energy. I do not believe there can be any justification for taxpayers stumping up for a Weld Club membership for the former managing director. The Leader of the Opposition approved those arrangements and gave all those pay increases, yet he comes into this place with the hide to call arrangements for the new managing director shonky.
I appreciate that taxpayers will find a performance bonus unconventional, even though a trading enterprise is required to act in a commercial fashion. A bonus linked to stringent performance criteria is far more rigorous than the automatic pay increases granted by the former Minister for Energy. I do not believe there can be any justification for taxpayers stumping up for a Weld Club membership for the former managing director. The Leader of the Opposition approved those arrangements and gave all those pay increases, yet he comes into this place with the hide to call arrangements for the new managing director shonky.
Mr E.S. RIPPER replied: The appointment of the Managing Director of Western Power is a very significant appointment for Western Australia because Western Power is a major trading enterprise with more than 2 580 employees, close to 850 000 customers and a turnover of nearly $1.7 billion. The managing director must not only run that organisation and take responsibility for the delivery of an essential service to those 850 000 customers but also prepare the organisation for and participate in the creation of the four successor publicly owned corporations following the Government’s electricity reform. I remind members that the reform aims to deliver investment, jobs and economic growth in the best long-term interests of this State. The Leader of the Opposition has described the managing director’s contractual arrangements as shonky. He has also described the managing director’s contractual arrangements as the worst example of political interference in the conduct and operations of a government organisation and the worst example of the sort of financial and salary arrangements for a chief executive. He asserted that the managing director’s performance bonus was more than $100 000. He said that it smacked of Laurie Connell and the 1980s. He has also questioned the professional credentials of the Western Power managing director. Even allowing for the Leader of the Opposition’s well-known propensity to embellish and exaggerate, this is the most despicable personal attack on a senior professional public servant in years. It is not only an attack on the managing director but also a slur on the integrity of the chairman of the board of Western Power, Malcolm Macpherson, and each of the board members who endorsed the managing director’s appointment - Mr Warren Murphy, Ms Jenny Seabrook, Mr Neil Hamilton and Dr Paul Moy. As I said earlier, the managing director’s contract was negotiated by the Western Power board with the advice and assistance of consulting and recruiting firm Korn/Ferry International Pty Ltd. Although it is undoubtedly a substantial package when measured against the Western Australian public sector, it is commensurate with packages elsewhere in the energy sector. Quite frankly, in dealing with the delivery of an essential service and a complex and substantial reform, Western Australia deserves the best. We should not skimp on the delivery of an essential service or on a complex and substantial reform program. There has also been debate about the remuneration of other senior executives of Western Power, the appointment of most of whom predates the change of government. As the Leader of the Opposition knows well, under the Electricity Corporation Act I have no authority over senior executive salaries; it is a matter for the board. In the interests of accountability, the salary packages are identified each year in the Western Power annual report. This is the first year that the executives have been identified by name. However, I have the power to accept or reject recommendations on the salary of the managing director and I have exercised that right on a previous occasion. In 2001 I was asked to approve an 11.7 per cent pay rise for the former managing director. I refused on the basis that it was inconsistent with wages policy and lacked sufficient justification. I have with me a chart that I would like members to look at. It is not a chart of the Argentinean inflation rate. It is not a chart of the unfunded spending promises made by the coalition. It is a chart indicating the pay rises granted to the former managing director by the former Minister for Energy. It is worth running through this chart. The former minister granted five pay rises of seven per cent, nine per cent, six per cent, eight per cent and 11 per cent in five years to the former managing director. Those were the five decisions that the Leader of the Opposition made when he was Minister for Energy between 1995 and 2000. Mr C.J. Barnett: He was full time and lived in Western Australia and did a great job. Mr E.S. RIPPER: The Leader of the Opposition said that he was full time, lived in Western Australia and did a great job. Does he stand by those decisions? Mr C.J. Barnett: Let’s suspend standing orders and we’ll debate it. Mr E.S. RIPPER: Does the Leader of the Opposition stand by those decisions? Mr C.J. Barnett: What a fool! Mr E.S. RIPPER: The Leader of the Opposition is too gutless to stand by his decisions. I appreciate that taxpayers will find a performance bonus unconventional, even though a trading enterprise is required to act in a commercial fashion. A bonus linked to stringent performance criteria is far more rigorous than the automatic pay increases granted by the former Minister for Energy. I do not believe there can be any justification for taxpayers stumping up for a Weld Club membership for the former managing director. The Leader of the Opposition approved those arrangements and gave all those pay increases, yet he comes into this place with the hide to call arrangements for the new managing director shonky.
The appointment of the Managing Director of Western Power is a very significant appointment for Western Australia because Western Power is a major trading enterprise with more than 2 580 employees, close to 850 000 customers and a turnover of nearly $1.7 billion. The managing director must not only run that organisation and take responsibility for the delivery of an essential service to those 850 000 customers but also prepare the organisation for and participate in the creation of the four successor publicly owned corporations following the Government’s electricity reform. I remind members that the reform aims to deliver investment, jobs and economic growth in the best long-term interests of this State. The Leader of the Opposition has described the managing director’s contractual arrangements as shonky. He has also described the managing director’s contractual arrangements as the worst example of political interference in the conduct and operations of a government organisation and the worst example of the sort of financial and salary arrangements for a chief executive. He asserted that the managing director’s performance bonus was more than $100 000. He said that it smacked of Laurie Connell and the 1980s. He has also questioned the professional credentials of the Western Power managing director. Even allowing for the Leader of the Opposition’s well-known propensity to embellish and exaggerate, this is the most despicable personal attack on a senior professional public servant in years. It is not only an attack on the managing director but also a slur on the integrity of the chairman of the board of Western Power, Malcolm Macpherson, and each of the board members who endorsed the managing director’s appointment - Mr Warren Murphy, Ms Jenny Seabrook, Mr Neil Hamilton and Dr Paul Moy. As I said earlier, the managing director’s contract was negotiated by the Western Power board with the advice and assistance of consulting and recruiting firm Korn/Ferry International Pty Ltd. Although it is undoubtedly a substantial package when measured against the Western Australian public sector, it is commensurate with packages elsewhere in the energy sector. Quite frankly, in dealing with the delivery of an essential service and a complex and substantial reform, Western Australia deserves the best. We should not skimp on the delivery of an essential service or on a complex and substantial reform program. There has also been debate about the remuneration of other senior executives of Western Power, the appointment of most of whom predates the change of government. As the Leader of the Opposition knows well, under the Electricity Corporation Act I have no authority over senior executive salaries; it is a matter for the board. In the interests of accountability, the salary packages are identified each year in the Western Power annual report. This is the first year that the executives have been identified by name. However, I have the power to accept or reject recommendations on the salary of the managing director and I have exercised that right on a previous occasion. In 2001 I was asked to approve an 11.7 per cent pay rise for the former managing director. I refused on the basis that it was inconsistent with wages policy and lacked sufficient justification. I have with me a chart that I would like members to look at. It is not a chart of the Argentinean inflation rate. It is not a chart of the unfunded spending promises made by the coalition. It is a chart indicating the pay rises granted to the former managing director by the former Minister for Energy. It is worth running through this chart. The former minister granted five pay rises of seven per cent, nine per cent, six per cent, eight per cent and 11 per cent in five years to the former managing director. Those were the five decisions that the Leader of the Opposition made when he was Minister for Energy between 1995 and 2000. Mr C.J. Barnett: He was full time and lived in Western Australia and did a great job. Mr E.S. RIPPER: The Leader of the Opposition said that he was full time, lived in Western Australia and did a great job. Does he stand by those decisions? Mr C.J. Barnett: Let’s suspend standing orders and we’ll debate it. Mr E.S. RIPPER: Does the Leader of the Opposition stand by those decisions? Mr C.J. Barnett: What a fool! Mr E.S. RIPPER: The Leader of the Opposition is too gutless to stand by his decisions. I appreciate that taxpayers will find a performance bonus unconventional, even though a trading enterprise is required to act in a commercial fashion. A bonus linked to stringent performance criteria is far more rigorous than the automatic pay increases granted by the former Minister for Energy. I do not believe there can be any justification for taxpayers stumping up for a Weld Club membership for the former managing director. The Leader of the Opposition approved those arrangements and gave all those pay increases, yet he comes into this place with the hide to call arrangements for the new managing director shonky.
The Leader of the Opposition has described the managing director’s contractual arrangements as shonky. He has also described the managing director’s contractual arrangements as the worst example of political interference in the conduct and operations of a government organisation and the worst example of the sort of financial and salary arrangements for a chief executive. He asserted that the managing director’s performance bonus was more than $100 000. He said that it smacked of Laurie Connell and the 1980s. He has also questioned the professional credentials of the Western Power managing director. Even allowing for the Leader of the Opposition’s well-known propensity to embellish and exaggerate, this is the most despicable personal attack on a senior professional public servant in years. It is not only an attack on the managing director but also a slur on the integrity of the chairman of the board of Western Power, Malcolm Macpherson, and each of the board members who endorsed the managing director’s appointment - Mr Warren Murphy, Ms Jenny Seabrook, Mr Neil Hamilton and Dr Paul Moy. As I said earlier, the managing director’s contract was negotiated by the Western Power board with the advice and assistance of consulting and recruiting firm Korn/Ferry International Pty Ltd. Although it is undoubtedly a substantial package when measured against the Western Australian public sector, it is commensurate with packages elsewhere in the energy sector. Quite frankly, in dealing with the delivery of an essential service and a complex and substantial reform, Western Australia deserves the best. We should not skimp on the delivery of an essential service or on a complex and substantial reform program. There has also been debate about the remuneration of other senior executives of Western Power, the appointment of most of whom predates the change of government. As the Leader of the Opposition knows well, under the Electricity Corporation Act I have no authority over senior executive salaries; it is a matter for the board. In the interests of accountability, the salary packages are identified each year in the Western Power annual report. This is the first year that the executives have been identified by name. However, I have the power to accept or reject recommendations on the salary of the managing director and I have exercised that right on a previous occasion. In 2001 I was asked to approve an 11.7 per cent pay rise for the former managing director. I refused on the basis that it was inconsistent with wages policy and lacked sufficient justification. I have with me a chart that I would like members to look at. It is not a chart of the Argentinean inflation rate. It is not a chart of the unfunded spending promises made by the coalition. It is a chart indicating the pay rises granted to the former managing director by the former Minister for Energy. It is worth running through this chart. The former minister granted five pay rises of seven per cent, nine per cent, six per cent, eight per cent and 11 per cent in five years to the former managing director. Those were the five decisions that the Leader of the Opposition made when he was Minister for Energy between 1995 and 2000. Mr C.J. Barnett: He was full time and lived in Western Australia and did a great job. Mr E.S. RIPPER: The Leader of the Opposition said that he was full time, lived in Western Australia and did a great job. Does he stand by those decisions? Mr C.J. Barnett: Let’s suspend standing orders and we’ll debate it. Mr E.S. RIPPER: Does the Leader of the Opposition stand by those decisions? Mr C.J. Barnett: What a fool! Mr E.S. RIPPER: The Leader of the Opposition is too gutless to stand by his decisions. I appreciate that taxpayers will find a performance bonus unconventional, even though a trading enterprise is required to act in a commercial fashion. A bonus linked to stringent performance criteria is far more rigorous than the automatic pay increases granted by the former Minister for Energy. I do not believe there can be any justification for taxpayers stumping up for a Weld Club membership for the former managing director. The Leader of the Opposition approved those arrangements and gave all those pay increases, yet he comes into this place with the hide to call arrangements for the new managing director shonky.
As I said earlier, the managing director’s contract was negotiated by the Western Power board with the advice and assistance of consulting and recruiting firm Korn/Ferry International Pty Ltd. Although it is undoubtedly a substantial package when measured against the Western Australian public sector, it is commensurate with packages elsewhere in the energy sector. Quite frankly, in dealing with the delivery of an essential service and a complex and substantial reform, Western Australia deserves the best. We should not skimp on the delivery of an essential service or on a complex and substantial reform program. There has also been debate about the remuneration of other senior executives of Western Power, the appointment of most of whom predates the change of government. As the Leader of the Opposition knows well, under the Electricity Corporation Act I have no authority over senior executive salaries; it is a matter for the board. In the interests of accountability, the salary packages are identified each year in the Western Power annual report. This is the first year that the executives have been identified by name. However, I have the power to accept or reject recommendations on the salary of the managing director and I have exercised that right on a previous occasion. In 2001 I was asked to approve an 11.7 per cent pay rise for the former managing director. I refused on the basis that it was inconsistent with wages policy and lacked sufficient justification. I have with me a chart that I would like members to look at. It is not a chart of the Argentinean inflation rate. It is not a chart of the unfunded spending promises made by the coalition. It is a chart indicating the pay rises granted to the former managing director by the former Minister for Energy. It is worth running through this chart. The former minister granted five pay rises of seven per cent, nine per cent, six per cent, eight per cent and 11 per cent in five years to the former managing director. Those were the five decisions that the Leader of the Opposition made when he was Minister for Energy between 1995 and 2000. Mr C.J. Barnett: He was full time and lived in Western Australia and did a great job. Mr E.S. RIPPER: The Leader of the Opposition said that he was full time, lived in Western Australia and did a great job. Does he stand by those decisions? Mr C.J. Barnett: Let’s suspend standing orders and we’ll debate it. Mr E.S. RIPPER: Does the Leader of the Opposition stand by those decisions? Mr C.J. Barnett: What a fool! Mr E.S. RIPPER: The Leader of the Opposition is too gutless to stand by his decisions. I appreciate that taxpayers will find a performance bonus unconventional, even though a trading enterprise is required to act in a commercial fashion. A bonus linked to stringent performance criteria is far more rigorous than the automatic pay increases granted by the former Minister for Energy. I do not believe there can be any justification for taxpayers stumping up for a Weld Club membership for the former managing director. The Leader of the Opposition approved those arrangements and gave all those pay increases, yet he comes into this place with the hide to call arrangements for the new managing director shonky.
There has also been debate about the remuneration of other senior executives of Western Power, the appointment of most of whom predates the change of government. As the Leader of the Opposition knows well, under the Electricity Corporation Act I have no authority over senior executive salaries; it is a matter for the board. In the interests of accountability, the salary packages are identified each year in the Western Power annual report. This is the first year that the executives have been identified by name. However, I have the power to accept or reject recommendations on the salary of the managing director and I have exercised that right on a previous occasion. In 2001 I was asked to approve an 11.7 per cent pay rise for the former managing director. I refused on the basis that it was inconsistent with wages policy and lacked sufficient justification. I have with me a chart that I would like members to look at. It is not a chart of the Argentinean inflation rate. It is not a chart of the unfunded spending promises made by the coalition. It is a chart indicating the pay rises granted to the former managing director by the former Minister for Energy. It is worth running through this chart. The former minister granted five pay rises of seven per cent, nine per cent, six per cent, eight per cent and 11 per cent in five years to the former managing director. Those were the five decisions that the Leader of the Opposition made when he was Minister for Energy between 1995 and 2000. Mr C.J. Barnett: He was full time and lived in Western Australia and did a great job. Mr E.S. RIPPER: The Leader of the Opposition said that he was full time, lived in Western Australia and did a great job. Does he stand by those decisions? Mr C.J. Barnett: Let’s suspend standing orders and we’ll debate it. Mr E.S. RIPPER: Does the Leader of the Opposition stand by those decisions? Mr C.J. Barnett: What a fool! Mr E.S. RIPPER: The Leader of the Opposition is too gutless to stand by his decisions. I appreciate that taxpayers will find a performance bonus unconventional, even though a trading enterprise is required to act in a commercial fashion. A bonus linked to stringent performance criteria is far more rigorous than the automatic pay increases granted by the former Minister for Energy. I do not believe there can be any justification for taxpayers stumping up for a Weld Club membership for the former managing director. The Leader of the Opposition approved those arrangements and gave all those pay increases, yet he comes into this place with the hide to call arrangements for the new managing director shonky.
I have with me a chart that I would like members to look at. It is not a chart of the Argentinean inflation rate. It is not a chart of the unfunded spending promises made by the coalition. It is a chart indicating the pay rises granted to the former managing director by the former Minister for Energy. It is worth running through this chart. The former minister granted five pay rises of seven per cent, nine per cent, six per cent, eight per cent and 11 per cent in five years to the former managing director. Those were the five decisions that the Leader of the Opposition made when he was Minister for Energy between 1995 and 2000. Mr C.J. Barnett: He was full time and lived in Western Australia and did a great job. Mr E.S. RIPPER: The Leader of the Opposition said that he was full time, lived in Western Australia and did a great job. Does he stand by those decisions? Mr C.J. Barnett: Let’s suspend standing orders and we’ll debate it. Mr E.S. RIPPER: Does the Leader of the Opposition stand by those decisions? Mr C.J. Barnett: What a fool! Mr E.S. RIPPER: The Leader of the Opposition is too gutless to stand by his decisions. I appreciate that taxpayers will find a performance bonus unconventional, even though a trading enterprise is required to act in a commercial fashion. A bonus linked to stringent performance criteria is far more rigorous than the automatic pay increases granted by the former Minister for Energy. I do not believe there can be any justification for taxpayers stumping up for a Weld Club membership for the former managing director. The Leader of the Opposition approved those arrangements and gave all those pay increases, yet he comes into this place with the hide to call arrangements for the new managing director shonky.
Mr C.J. Barnett: He was full time and lived in Western Australia and did a great job. Mr E.S. RIPPER: The Leader of the Opposition said that he was full time, lived in Western Australia and did a great job. Does he stand by those decisions? Mr C.J. Barnett: Let’s suspend standing orders and we’ll debate it. Mr E.S. RIPPER: Does the Leader of the Opposition stand by those decisions? Mr C.J. Barnett: What a fool! Mr E.S. RIPPER: The Leader of the Opposition is too gutless to stand by his decisions. I appreciate that taxpayers will find a performance bonus unconventional, even though a trading enterprise is required to act in a commercial fashion. A bonus linked to stringent performance criteria is far more rigorous than the automatic pay increases granted by the former Minister for Energy. I do not believe there can be any justification for taxpayers stumping up for a Weld Club membership for the former managing director. The Leader of the Opposition approved those arrangements and gave all those pay increases, yet he comes into this place with the hide to call arrangements for the new managing director shonky.
Mr E.S. RIPPER: The Leader of the Opposition said that he was full time, lived in Western Australia and did a great job. Does he stand by those decisions? Mr C.J. Barnett: Let’s suspend standing orders and we’ll debate it. Mr E.S. RIPPER: Does the Leader of the Opposition stand by those decisions? Mr C.J. Barnett: What a fool! Mr E.S. RIPPER: The Leader of the Opposition is too gutless to stand by his decisions. I appreciate that taxpayers will find a performance bonus unconventional, even though a trading enterprise is required to act in a commercial fashion. A bonus linked to stringent performance criteria is far more rigorous than the automatic pay increases granted by the former Minister for Energy. I do not believe there can be any justification for taxpayers stumping up for a Weld Club membership for the former managing director. The Leader of the Opposition approved those arrangements and gave all those pay increases, yet he comes into this place with the hide to call arrangements for the new managing director shonky.
Mr C.J. Barnett: Let’s suspend standing orders and we’ll debate it. Mr E.S. RIPPER: Does the Leader of the Opposition stand by those decisions? Mr C.J. Barnett: What a fool! Mr E.S. RIPPER: The Leader of the Opposition is too gutless to stand by his decisions. I appreciate that taxpayers will find a performance bonus unconventional, even though a trading enterprise is required to act in a commercial fashion. A bonus linked to stringent performance criteria is far more rigorous than the automatic pay increases granted by the former Minister for Energy. I do not believe there can be any justification for taxpayers stumping up for a Weld Club membership for the former managing director. The Leader of the Opposition approved those arrangements and gave all those pay increases, yet he comes into this place with the hide to call arrangements for the new managing director shonky.
Mr E.S. RIPPER: Does the Leader of the Opposition stand by those decisions? Mr C.J. Barnett: What a fool! Mr E.S. RIPPER: The Leader of the Opposition is too gutless to stand by his decisions. I appreciate that taxpayers will find a performance bonus unconventional, even though a trading enterprise is required to act in a commercial fashion. A bonus linked to stringent performance criteria is far more rigorous than the automatic pay increases granted by the former Minister for Energy. I do not believe there can be any justification for taxpayers stumping up for a Weld Club membership for the former managing director. The Leader of the Opposition approved those arrangements and gave all those pay increases, yet he comes into this place with the hide to call arrangements for the new managing director shonky.
Mr C.J. Barnett: What a fool! Mr E.S. RIPPER: The Leader of the Opposition is too gutless to stand by his decisions. I appreciate that taxpayers will find a performance bonus unconventional, even though a trading enterprise is required to act in a commercial fashion. A bonus linked to stringent performance criteria is far more rigorous than the automatic pay increases granted by the former Minister for Energy. I do not believe there can be any justification for taxpayers stumping up for a Weld Club membership for the former managing director. The Leader of the Opposition approved those arrangements and gave all those pay increases, yet he comes into this place with the hide to call arrangements for the new managing director shonky.
Mr E.S. RIPPER: The Leader of the Opposition is too gutless to stand by his decisions. I appreciate that taxpayers will find a performance bonus unconventional, even though a trading enterprise is required to act in a commercial fashion. A bonus linked to stringent performance criteria is far more rigorous than the automatic pay increases granted by the former Minister for Energy. I do not believe there can be any justification for taxpayers stumping up for a Weld Club membership for the former managing director. The Leader of the Opposition approved those arrangements and gave all those pay increases, yet he comes into this place with the hide to call arrangements for the new managing director shonky.
I appreciate that taxpayers will find a performance bonus unconventional, even though a trading enterprise is required to act in a commercial fashion. A bonus linked to stringent performance criteria is far more rigorous than the automatic pay increases granted by the former Minister for Energy. I do not believe there can be any justification for taxpayers stumping up for a Weld Club membership for the former managing director. The Leader of the Opposition approved those arrangements and gave all those pay increases, yet he comes into this place with the hide to call arrangements for the new managing director shonky.
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