❓ Opposition questions the high remuneration of the Agent General in London, while the Premier defends the role's importance and accuses the opposition of personal attacks due to a past report critical of their financial management.
AnsweredQoN 140Legislative Assembly
QuestionView source ↗
AGENT GENERAL — REMUNERATION
140. Mr R.S. LOVE to the Premier:
I refer to the Agent General in
London, Mr John Langoulant, who is on a nice combined salary of more than $840 000
a year. His highly paid perks include business class international flights and
swanky inner-city London apartments. How can this enormous cost be justified
when everyday Western Australians are struggling to pay their household bills?
Several members interjected.
The SPEAKER : Order, please!
140. Mr R.S. LOVE to the Premier:
I refer to the Agent General in
London, Mr John Langoulant, who is on a nice combined salary of more than $840 000
a year. His highly paid perks include business class international flights and
swanky inner-city London apartments. How can this enormous cost be justified
when everyday Western Australians are struggling to pay their household bills?
Several members interjected.
The SPEAKER : Order, please!
AnswerView source ↗
I
thank the member for the question. I thank him a lot. Madam Speaker, we are a trading
economy. Western Australia is a trading economy, and that is why the role of
our trade commissioners and the Agent General is an important one that
we have to make sure of because they are essentially our ambassadors. They are
out there day in, day out trying to find investment opportunities for
businesses in their markets and, of course, trade opportunities for Western Australian
companies in those markets. They do a great job around the world.
Of course, the Agent General is a specific
role within that network. The Agent General has been part of Western Australia
since before the 1900s. If people look at the enabling legislation, they will
see it does not mention the words ''Western Australia'', because
it technically did not exist at the time the position was created. It is a very
important role. All the trade commissioners are paid rates commensurate with
their status, experience and responsibilities, taking into account the
conditions in the markets in which they are working, particularly exchange rates and the expenses they incur. From that point
of view, that is essentially in the control of the department, as it should
be.
I note that the salary of the Agent
General in 2008 was about $333 500. For the Agent General last year, the salary
was $376 000. These are big numbers, and we expect them to do their job, but it
is essentially commensurate with when the last government appointed the Agent
General in 2008.
I wonder what the motivation of the
other side is in attacking John Langoulant on this matter. Obviously, it is important that make sure that we protect the state's
finances and we derive value for money for Western Australians, but I wonder
what the actual motivation is here. We know that it has nothing to do with the
position itself. They do not like John Langoulant, because he has done a great
job for Western Australia as a former Under Treasurer and someone who has done
terrific work on behalf of the people of Western Australia. Why are those
opposite so dead against him? We know why: because under the Langoulant report,
which was created when Labor came to government in 2017, John Langoulant made
some very scathing observations about the previous government, when the Leader of the Opposition was in
government. In fact, in February 2018, he provided the report. An ABC News
article states —
� provided a scathing assessment of
the former Liberal–National government's management of the
state in leading WA to a string of large deficits and a debt bill north of $30
billion.
John Langoulant—this will be
of interest to the Minister for Health—was particularly scathing of the
$4.8 billion contract that the Liberal–National
government gave to Serco at Fiona Stanley Hospital without even having a business case. There was no business case at all. The article continues —
� a $4.8 billion contract with Serco for management of the Fiona
Stanley Hospital was signed without a business case being prepared, something
described as ''startling and astounding''
There were —
� repeated warnings from bureaucrats, particularly from Treasury,
about where WA's finances were heading were ignored
� contracts were poorly managed, due in part to the reduced
capability of the public service
That was because of the cuts the
former government put in place. Quite frankly, John Langoulant exposed the
other side as the ruinous manager of the state's finances that it was.
It continues —
Speaking on ABC Radio Perth, Mr
Langoulant said it was ''startling'' Serco's $4.8 billion
contract to manage Fiona Stanley Hospital was signed without a business case
being prepared.
''The Government committed to
it, there was no systematic analysis of options available, the risks that the
state might be exposed to, and as a result we have a contract which has a number
of difficulties �
We
understand why the other side is so upset about John Langoulant's
ongoing service to the community. It is because he was so scathing of
the opposition in government. You are a disgrace. We find ourselves in a situation
—
Several members interjected.
The SPEAKER : The opposition,
including the Liberal Party members who have not asked this question, the
interjections are incessant, as they have been from the person who asked the
question. I have given some leeway to the person who asked the question. There
is still the possibility of a supplementary, so I urge you to wait for the
opportunity of the supplementary if you have some further question you would
like to ask the Premier.
Mr R.H. COOK : Finally, I want
to draw attention to another aspect of this report. The former Under Treasurer
talked about the state being deep into the red through poor governance culture,
a lack of financial discipline and unsustainable spending decisions. He said —
To
avoid a repetition of this financial 'perfect storm' which has
proved so damaging for the State's finances, the capacity and status
of Treasury within the public sector must be restored. And future Premiers and
Ministers would do the State a favour by paying greater heed to Treasury
advice.
That
is what we have done. We have restored the state finances. Our finances are now
the strongest of any state in Australia, and the report from John Langoulant
exposed members on the other side for the frauds that they were in
government and for the wreckage that they left of the state's finances.
That is why they are attacking the Agent General.
thank the member for the question. I thank him a lot. Madam Speaker, we are a trading
economy. Western Australia is a trading economy, and that is why the role of
our trade commissioners and the Agent General is an important one that
we have to make sure of because they are essentially our ambassadors. They are
out there day in, day out trying to find investment opportunities for
businesses in their markets and, of course, trade opportunities for Western Australian
companies in those markets. They do a great job around the world.
Of course, the Agent General is a specific
role within that network. The Agent General has been part of Western Australia
since before the 1900s. If people look at the enabling legislation, they will
see it does not mention the words ''Western Australia'', because
it technically did not exist at the time the position was created. It is a very
important role. All the trade commissioners are paid rates commensurate with
their status, experience and responsibilities, taking into account the
conditions in the markets in which they are working, particularly exchange rates and the expenses they incur. From that point
of view, that is essentially in the control of the department, as it should
be.
I note that the salary of the Agent
General in 2008 was about $333 500. For the Agent General last year, the salary
was $376 000. These are big numbers, and we expect them to do their job, but it
is essentially commensurate with when the last government appointed the Agent
General in 2008.
I wonder what the motivation of the
other side is in attacking John Langoulant on this matter. Obviously, it is important that make sure that we protect the state's
finances and we derive value for money for Western Australians, but I wonder
what the actual motivation is here. We know that it has nothing to do with the
position itself. They do not like John Langoulant, because he has done a great
job for Western Australia as a former Under Treasurer and someone who has done
terrific work on behalf of the people of Western Australia. Why are those
opposite so dead against him? We know why: because under the Langoulant report,
which was created when Labor came to government in 2017, John Langoulant made
some very scathing observations about the previous government, when the Leader of the Opposition was in
government. In fact, in February 2018, he provided the report. An ABC News
article states —
� provided a scathing assessment of
the former Liberal–National government's management of the
state in leading WA to a string of large deficits and a debt bill north of $30
billion.
John Langoulant—this will be
of interest to the Minister for Health—was particularly scathing of the
$4.8 billion contract that the Liberal–National
government gave to Serco at Fiona Stanley Hospital without even having a business case. There was no business case at all. The article continues —
� a $4.8 billion contract with Serco for management of the Fiona
Stanley Hospital was signed without a business case being prepared, something
described as ''startling and astounding''
There were —
� repeated warnings from bureaucrats, particularly from Treasury,
about where WA's finances were heading were ignored
� contracts were poorly managed, due in part to the reduced
capability of the public service
That was because of the cuts the
former government put in place. Quite frankly, John Langoulant exposed the
other side as the ruinous manager of the state's finances that it was.
It continues —
Speaking on ABC Radio Perth, Mr
Langoulant said it was ''startling'' Serco's $4.8 billion
contract to manage Fiona Stanley Hospital was signed without a business case
being prepared.
''The Government committed to
it, there was no systematic analysis of options available, the risks that the
state might be exposed to, and as a result we have a contract which has a number
of difficulties �
We
understand why the other side is so upset about John Langoulant's
ongoing service to the community. It is because he was so scathing of
the opposition in government. You are a disgrace. We find ourselves in a situation
—
Several members interjected.
The SPEAKER : The opposition,
including the Liberal Party members who have not asked this question, the
interjections are incessant, as they have been from the person who asked the
question. I have given some leeway to the person who asked the question. There
is still the possibility of a supplementary, so I urge you to wait for the
opportunity of the supplementary if you have some further question you would
like to ask the Premier.
Mr R.H. COOK : Finally, I want
to draw attention to another aspect of this report. The former Under Treasurer
talked about the state being deep into the red through poor governance culture,
a lack of financial discipline and unsustainable spending decisions. He said —
To
avoid a repetition of this financial 'perfect storm' which has
proved so damaging for the State's finances, the capacity and status
of Treasury within the public sector must be restored. And future Premiers and
Ministers would do the State a favour by paying greater heed to Treasury
advice.
That
is what we have done. We have restored the state finances. Our finances are now
the strongest of any state in Australia, and the report from John Langoulant
exposed members on the other side for the frauds that they were in
government and for the wreckage that they left of the state's finances.
That is why they are attacking the Agent General.
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