Mr Masters questions the valuation and asset reduction of the former Dairy Industry Authority (DIA) during its closure, focusing on financial transactions and justifications for fund transfers to other departments. The response details unbudgeted items and costs incurred, clarifying a reported transfer amount.

AnsweredQoN 914Legislative Assembly
Asked
22 August 2001
Member
Portfolio
Agriculture, Forestry and Fisheries

QuestionView source ↗

(1) I refer to the article on page 6 of
Farm Weekly
on 19 August 2001 and ask in what ways and for what reasons do you believe that the assets of the former Dairy Industry Authority (DIA) were overvalued?
(2) If the claims by 8 former milk distributors are found to be valid, on what grounds would the claimed $2 million be removed from the DIA assets and not from the Government’s consolidated revenue?
(3) How were the assets of the DIA reduced from the $10.6 million figure stated in early 2000 to just $7.7 million when it ceased to operate on 13 July 2000?
(4) What services did the Department of Agriculture provide to the DIA between 30 June and 13 July 2000 to justify a transfer of $1.5 million from the DIA?

AnswerView source ↗

Answered
11 September 2001
Responded by
Parliamentary Secretary to the Minister for Agriculture, Forestry and Fisheries
Response time
20 days
3) The June 1999 figure did not include provision for the following unbudgeted items to 30 June 2000: Payments of $883,000 to milk vendors under the Distribution Adjustment Assistance Scheme. Provision for doubtful debts of $315,000. Revaluation of land and buildings by $221,000 TOTAL $1.42 million. The following costs were incurred by the DIA between 1 July 2000 and 13 July 2000: Transfer of $650,000 to Agriculture Western Australia. Allocation of $682,000 to Health Department of WA. Expenses of $40,000 for the Transition Advisory Group. Provision for doubtful debts of $52,000. Loss from asset sales of $29,000. TOTAL $1.45 million These items combined to reduce the assets of the DIA to $7.7 million when it ceased operations on 13 July 2000. 4) The report that DIA transferred $1.5 million to the Department of Agriculture (then known as Agriculture Western Australia) between 30 June 2000 and 13 July 2000 is incorrect. This represents the total figure for costs from 1 to 13 July as outlined under Question 3 above. The former Minister for Primary Industry, Monty House, directed the DIA to transfer $650,000 to the Department of Agriculture. This transfer was the result of an agreement reached between the then Government and Opposition prior to the repeal of the Dairy Industry Act. This was not payment for services delivered to the DIA by the Department of Agriculture. The funds were transferred for the following purposes: $400,000 for the establishment and operation of a Dairy Industry Working Group. $200,000 for monitoring of milk prices after deregulation. $ 30,000 for expenses associated with the windup of the DIA. $ 20,000 for incidental expenses.
Payments of $883,000 to milk vendors under the Distribution Adjustment Assistance Scheme. Provision for doubtful debts of $315,000. Revaluation of land and buildings by $221,000 TOTAL $1.42 million. The following costs were incurred by the DIA between 1 July 2000 and 13 July 2000: Transfer of $650,000 to Agriculture Western Australia. Allocation of $682,000 to Health Department of WA. Expenses of $40,000 for the Transition Advisory Group. Provision for doubtful debts of $52,000. Loss from asset sales of $29,000. TOTAL $1.45 million These items combined to reduce the assets of the DIA to $7.7 million when it ceased operations on 13 July 2000. 4) The report that DIA transferred $1.5 million to the Department of Agriculture (then known as Agriculture Western Australia) between 30 June 2000 and 13 July 2000 is incorrect. This represents the total figure for costs from 1 to 13 July as outlined under Question 3 above. The former Minister for Primary Industry, Monty House, directed the DIA to transfer $650,000 to the Department of Agriculture. This transfer was the result of an agreement reached between the then Government and Opposition prior to the repeal of the Dairy Industry Act. This was not payment for services delivered to the DIA by the Department of Agriculture. The funds were transferred for the following purposes: $400,000 for the establishment and operation of a Dairy Industry Working Group. $200,000 for monitoring of milk prices after deregulation. $ 30,000 for expenses associated with the windup of the DIA. $ 20,000 for incidental expenses.
The following costs were incurred by the DIA between 1 July 2000 and 13 July 2000: Transfer of $650,000 to Agriculture Western Australia. Allocation of $682,000 to Health Department of WA. Expenses of $40,000 for the Transition Advisory Group. Provision for doubtful debts of $52,000. Loss from asset sales of $29,000. TOTAL $1.45 million These items combined to reduce the assets of the DIA to $7.7 million when it ceased operations on 13 July 2000. 4) The report that DIA transferred $1.5 million to the Department of Agriculture (then known as Agriculture Western Australia) between 30 June 2000 and 13 July 2000 is incorrect. This represents the total figure for costs from 1 to 13 July as outlined under Question 3 above. The former Minister for Primary Industry, Monty House, directed the DIA to transfer $650,000 to the Department of Agriculture. This transfer was the result of an agreement reached between the then Government and Opposition prior to the repeal of the Dairy Industry Act. This was not payment for services delivered to the DIA by the Department of Agriculture. The funds were transferred for the following purposes: $400,000 for the establishment and operation of a Dairy Industry Working Group. $200,000 for monitoring of milk prices after deregulation. $ 30,000 for expenses associated with the windup of the DIA. $ 20,000 for incidental expenses.
Transfer of $650,000 to Agriculture Western Australia. Allocation of $682,000 to Health Department of WA. Expenses of $40,000 for the Transition Advisory Group. Provision for doubtful debts of $52,000. Loss from asset sales of $29,000. TOTAL $1.45 million These items combined to reduce the assets of the DIA to $7.7 million when it ceased operations on 13 July 2000. 4) The report that DIA transferred $1.5 million to the Department of Agriculture (then known as Agriculture Western Australia) between 30 June 2000 and 13 July 2000 is incorrect. This represents the total figure for costs from 1 to 13 July as outlined under Question 3 above. The former Minister for Primary Industry, Monty House, directed the DIA to transfer $650,000 to the Department of Agriculture. This transfer was the result of an agreement reached between the then Government and Opposition prior to the repeal of the Dairy Industry Act. This was not payment for services delivered to the DIA by the Department of Agriculture. The funds were transferred for the following purposes: $400,000 for the establishment and operation of a Dairy Industry Working Group. $200,000 for monitoring of milk prices after deregulation. $ 30,000 for expenses associated with the windup of the DIA. $ 20,000 for incidental expenses.
These items combined to reduce the assets of the DIA to $7.7 million when it ceased operations on 13 July 2000. 4) The report that DIA transferred $1.5 million to the Department of Agriculture (then known as Agriculture Western Australia) between 30 June 2000 and 13 July 2000 is incorrect. This represents the total figure for costs from 1 to 13 July as outlined under Question 3 above. The former Minister for Primary Industry, Monty House, directed the DIA to transfer $650,000 to the Department of Agriculture. This transfer was the result of an agreement reached between the then Government and Opposition prior to the repeal of the Dairy Industry Act. This was not payment for services delivered to the DIA by the Department of Agriculture. The funds were transferred for the following purposes: $400,000 for the establishment and operation of a Dairy Industry Working Group. $200,000 for monitoring of milk prices after deregulation. $ 30,000 for expenses associated with the windup of the DIA. $ 20,000 for incidental expenses.
4) The report that DIA transferred $1.5 million to the Department of Agriculture (then known as Agriculture Western Australia) between 30 June 2000 and 13 July 2000 is incorrect. This represents the total figure for costs from 1 to 13 July as outlined under Question 3 above. The former Minister for Primary Industry, Monty House, directed the DIA to transfer $650,000 to the Department of Agriculture. This transfer was the result of an agreement reached between the then Government and Opposition prior to the repeal of the Dairy Industry Act. This was not payment for services delivered to the DIA by the Department of Agriculture. The funds were transferred for the following purposes: $400,000 for the establishment and operation of a Dairy Industry Working Group. $200,000 for monitoring of milk prices after deregulation. $ 30,000 for expenses associated with the windup of the DIA. $ 20,000 for incidental expenses.
The former Minister for Primary Industry, Monty House, directed the DIA to transfer $650,000 to the Department of Agriculture. This transfer was the result of an agreement reached between the then Government and Opposition prior to the repeal of the Dairy Industry Act. This was not payment for services delivered to the DIA by the Department of Agriculture. The funds were transferred for the following purposes: $400,000 for the establishment and operation of a Dairy Industry Working Group. $200,000 for monitoring of milk prices after deregulation. $ 30,000 for expenses associated with the windup of the DIA. $ 20,000 for incidental expenses.
The funds were transferred for the following purposes: $400,000 for the establishment and operation of a Dairy Industry Working Group. $200,000 for monitoring of milk prices after deregulation. $ 30,000 for expenses associated with the windup of the DIA. $ 20,000 for incidental expenses.
$400,000 for the establishment and operation of a Dairy Industry Working Group. $200,000 for monitoring of milk prices after deregulation. $ 30,000 for expenses associated with the windup of the DIA. $ 20,000 for incidental expenses.

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