Dr WOODRUFF – Attorney-General, what we’re really concerned about is the most vulnerable people. The difference between the Public Trustee in Tasmania and the Public Trustee, as I understand it, in most other states, is that we have a scaled capital commission structure that we use here with a flat rate, whereas other states have a flat rate for clients. The figures I have is that the Northern Territory, for example, has a rate of commission of 2.2 per cent over $40,000.
In Tasmania we have a situation now under the Public Trustee where there is 0 per cent commission charged for assets less than $100,000. That means that the Public Trustee, by an economic regulator’s measure, is less efficient because we’re not gouging money out of the most vulnerable Tasmanians. That is a problem we’ve got here when we have a situation where you and Treasury and Justice are deciding to privatise the Public Trustee and hand over the situation for the poorest Tasmanian people.
As Ms White said, you might only have $20,000 but that $20,000 for that person is so important. Every cent of that is critical to the circumstances of them and their loved ones and the idea that it would be handed over to a private sector who would then charge a commission on that is a big problem.
Is it your government’s intention that the commissioning base rate at the moment, which is set by the Public Trustee, would be required to be taken up by the public sector? In other words, for people with less than $100,000 the private sector would get 0 per cent commission? How would that work, or are the cases that the government’s going to keep but they’re going hand out the profit-making ones to the private sector so nothing’s coming back to the public?
Mr BARNETT – Thank you very much for the question. As I’ve announced yesterday, and it was on the public record in terms of wills, estates and related matters, that will be outsourced to the private sector. I note the Law Society has expressed concerns about the Public Trustee in the past in terms of using government grant funding to support its commercial activities and the regulator noted that the Public Trustee should exercise caution to ensure it is not breaching competitive neutrality principles.
Having said that, the core services will be within the Department of Justice to ensure that we provide the services that vulnerable Tasmanians need in a cost-effective way. Other jurisdictions have different models of how they support vulnerable Tasmanians. You referred to the Northern Territory. I’m happy to pass to the acting secretary to add to the answer.
Ms BOURNE – Thanks, Attorney-General. The Northern Territory is certainly a model that I know the CEO and the board have considered. Mr Bugg referred to it in his review as well. Some of the matters that members have raised today are critical for ongoing discussions about advice that we can provide to government as part of the review and as the restructure is worked through about how to make sure that vulnerable Tasmanians aren’t negatively impacted by any restructure. I know that’s certainly at the forefront of my mind and also Mr Kennedy’s and we’ll continue to work through that detail.
Dr WOODRUFF – When a private contractor who has a contract with the government to provide services on behalf of the government has problems with their functioning and the government identifies those problems, what happens is that the government works with that private organisation and requires them to make changes. Why didn’t the government, on the back of the Economic Regulator’s report, go to the Public Trustee and require the Public Trustee to make those changes within the Public Trustee, instead of splitting an organisation in two, privatising the parts that will give money to the private sector, taking in the loss-making parts to the public sector into government and splitting an organisation with all the staff and all the review work that’s just been undertaken and all the culture that’s been developed? All the good work that’s been done on changing the culture of the Public Trustee is going to be completely split up.
Mr BARNETT – Thank you for the question. First of all, I acknowledge the good work that the Public Trustee has undertaken, particularly since the Bugg review and since the Economic Regulator’s report has come down. I acknowledge that but there’s a lot more that needs to be done. There has been an opportunity for the Public Trustee to respond to the Economic Regulator’s report, which landed earlier in the year. The Public Trustee has responded to that in part, but the findings are very comprehensive, so we have released that report and it’s been a public document since yesterday.
There have been regular meetings, including with Treasury and the Department of Justice. We wanted to do what’s best for vulnerable Tasmanians and that’s why we’ve announced the restructure and in terms of the wills and those services, they will be outsourced to the private sector.
Dr WOODRUFF – Will you continue making a commitment that there will be zero dollars commission on assets less than $100,000?
Mr BARNETT – In terms of the restructure and exactly how it’s going to be shaped, we have a 12 to 18-month transition period. We will be taking expert advice over the next six to eight weeks from an independent reviewer.
Dr WOODRUFF – Who is that person?
Mr BARNETT – They haven’t been appointed.
Dr WOODRUFF – Who will appoint them?
Mr BARNETT – The government.
Dr WOODRUFF – What’s the process for that?
Ms WHITE – You or Treasury?
Mr BARNETT – It’ll be in consultation, I’m sure. My understanding is that Treasury will make that appointment –
Dr WOODRUFF – Treasury will make an appointment. Right.
Mr BARNETT – in consultation with the Department of Justice and that will be undertaken swiftly. That will look at the model for best-practice and fit-for-purpose to provide those services going forward. There’ll be a 12 to 18-month transition to ensure that we get the balance right and ensure that it is fit for purpose
Dr WOODRUFF – But will it be, will you continue with the zero dollars for people with assets under $100,000?
Mr BARNETT – We will be putting the interests of vulnerable Tasmanians as a priority. We put value on that and exactly how that will roll out over the next 12 to 18 months. I will certainly be ensuring that the Department of Justice, in liaison with the Public Trustee, work through all those very important issues.
