Labor demotes Chief Executive – but still pays CE salary

Hon Rob Lucas MLC

Shadow Minister for Finance
Shadow Minister for Public Sector Management
Shadow Minister for Industrial Relations
Shadow Minister for Government Enterprises
Shadow Ministers for Federal/State Relations
Shadow Minister for Gambling

Labor demotes Chief Executive – but still pays CE salary

The Labor Government is continuing to pay a former Chief Executive it just demoted a Chief Executive’s salary of more than $300,000 per year.

New Department of Manufacturing, Innovation, Trade, Resources and Energy (DMITRE) Chief Executive Geoff Knight told the Legislative Council Budget and Finance Committee yesterday former Chief Executive Lance Worrall, also a long-term adviser to former Premier Mike Rann, is continuing to be paid at his old salary, despite now being one of three Deputy Chief Executives of the Department.

“This is yet another example of waste and financial mismanagement by Minister Koutsantonis and the Labor Government,” Mr Lucas said.

“Yesterday’s evidence also revealed the Labor Government is appointing ex Thinker in Residence Goran Roos to head its new Advanced Manufacturing Council, even though Mr Roos is on the record saying the car industry is uncompetitive and has to be ‘let go’.

“Professor Roos on 7 February 2011 was quoted directly in the Advertiser dismissing the future of the car industry in South Australia:

“Each car produced in Australia is subsidised to the tune of approximately $3000 by the government. Why? The industry is not competitive and you have to let it go.”

“Whilst the Government argues Professor Roos might have been taken ‘out of context’ it is hard to see how this direct quote of his views can be deemed to be ‘out of context’,” Mr Lucas said.

“Given the critical importance of the car industry to South Australia’s future it is certainly a very interesting appointment by the Government.

“Mr Knight also confirmed that the promised new Advanced Manufacturing Council was in fact only a replacement of the existing Manufacturing Consultative Council – clearly yet another example of political spin by the Labor Government.”

Other evidence to the Budget and Finance Committee included:

• DMITRE was unsure whether any of the recent State grants to Holden of $30 million and $3.4 million would have to repaid if Holden closed in 2016
• DMITRE was still trying to recover grants of $2.25 million and $900,000 given to Tiger Airways
• The appointment of Professor Frank Zumbo as Deputy Small Business Commissioner was not advertised and was a decision of the Government
• Statements by BHP Billiton’s Marius Kloppers reported in the Financial Review on 9 February 2012 about the Olympic Dam Indenture were either a ‘misquote’ or ‘wrong’