A WA parliamentary question regarding debts owed to the Education and Training portfolio by the Commonwealth Department of Employment, Education and Training (DEET) and the Shire of Busselton, and the justification for writing them off. The debts relate to a land swap agreement and road construction costs.

AnsweredQoN 4386Legislative Council
Asked
21 November 2006
Portfolio
Education and Training

QuestionView source ↗

I refer to the answer to question on notice No. 3834 of 2006, and I ask -
(1) What was the nature of debts from the -
(a) Commonwealth Department of Employment, Education and Training; and
(b) Shire of Busselton?
(2) What was the justification for writing each of them off?

AnswerView source ↗

Answered
19 March 2007
Responded by
Minister for Education and Training
Response time
118 days
(b) Shire of Busselton?
1b. The Shire of Busselton and the Department entered into an agreement that swapped the Geographe Primary School site and the Community Aquatic Centre site. Part of the agreement was that the Shire would construct a road providing the primary school with a second road frontage. The Shire approved the design, documentation and estimate of the road. The road construction was included in the main contract for the new school to gain best value for money. The value of the work was $150 623 for which the Shire was invoiced in 2001. The Shire paid $112 910.60, leaving a balance of $37 712.40. 2a. DEET maintained that they had paid the debt and provided their records to confirm that they had paid an amount on July 1997. A search for the receipt of the money from DEET was unsuccessful due in part to the merger of the College of Customised Training Network (CCTN) and the Department of Training in 1997 and the structure of the Bank Accounts of CCTN. Considering the age of the debt, the evidence provided by DEET that they had paid the debt, and the inability to determine conclusively whether the cheque had been received, it was considered futile to pursue this further. 2b. A dispute arose due to the final cost exceeding the original estimate, variations to the contract and the Shire's construction of two roundabouts. Meetings were held with the Shire in an attempt to resolve the matter. However, the Shire advised that it would vigorously defend any legal action, would launch its own counterclaim and seek recovery of legal costs. It was considered that it would not be cost effective to pursue this debt further.
The value of the work was $150 623 for which the Shire was invoiced in 2001. The Shire paid $112 910.60, leaving a balance of $37 712.40. 2a. DEET maintained that they had paid the debt and provided their records to confirm that they had paid an amount on July 1997. A search for the receipt of the money from DEET was unsuccessful due in part to the merger of the College of Customised Training Network (CCTN) and the Department of Training in 1997 and the structure of the Bank Accounts of CCTN. Considering the age of the debt, the evidence provided by DEET that they had paid the debt, and the inability to determine conclusively whether the cheque had been received, it was considered futile to pursue this further. 2b. A dispute arose due to the final cost exceeding the original estimate, variations to the contract and the Shire's construction of two roundabouts. Meetings were held with the Shire in an attempt to resolve the matter. However, the Shire advised that it would vigorously defend any legal action, would launch its own counterclaim and seek recovery of legal costs. It was considered that it would not be cost effective to pursue this debt further.
2a. DEET maintained that they had paid the debt and provided their records to confirm that they had paid an amount on July 1997. A search for the receipt of the money from DEET was unsuccessful due in part to the merger of the College of Customised Training Network (CCTN) and the Department of Training in 1997 and the structure of the Bank Accounts of CCTN. Considering the age of the debt, the evidence provided by DEET that they had paid the debt, and the inability to determine conclusively whether the cheque had been received, it was considered futile to pursue this further. 2b. A dispute arose due to the final cost exceeding the original estimate, variations to the contract and the Shire's construction of two roundabouts. Meetings were held with the Shire in an attempt to resolve the matter. However, the Shire advised that it would vigorously defend any legal action, would launch its own counterclaim and seek recovery of legal costs. It was considered that it would not be cost effective to pursue this debt further.
Considering the age of the debt, the evidence provided by DEET that they had paid the debt, and the inability to determine conclusively whether the cheque had been received, it was considered futile to pursue this further. 2b. A dispute arose due to the final cost exceeding the original estimate, variations to the contract and the Shire's construction of two roundabouts. Meetings were held with the Shire in an attempt to resolve the matter. However, the Shire advised that it would vigorously defend any legal action, would launch its own counterclaim and seek recovery of legal costs. It was considered that it would not be cost effective to pursue this debt further.
2b. A dispute arose due to the final cost exceeding the original estimate, variations to the contract and the Shire's construction of two roundabouts. Meetings were held with the Shire in an attempt to resolve the matter. However, the Shire advised that it would vigorously defend any legal action, would launch its own counterclaim and seek recovery of legal costs. It was considered that it would not be cost effective to pursue this debt further.

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