Senate debates

Monday, 10 September 2012

Questions on Notice

Australian Quarantine and Inspection Service (Question No. 2008)

Photo of Mathias CormannMathias Cormann (WA, Liberal Party, Shadow Assistant Treasurer) Share this | | Hansard source

asked the Minister for Agriculture, Fisheries and Forestry, upon notice, on 10 August 2012:

(1) What is the status of monies owed to the Australian Quarantine and Inspection Service (AQIS) by a company in administration after the company has been sold by the administrator.

(2) Does AQIS declare any monies it is owed by a company in administration to the administrator.

(3) Is the Minister aware of accusations that AQIS did not declare such debts in the case of two abattoirs in Western Australia; one located in Gingin and one in Narrogin.

(4) Is it correct that the abattoir in Narrogin is being asked to pay $150 000 to AQIS for costs incurred under previous owners; if not, how much is AQIS demanding the Narrogin abattoir pay.

(5) Is it correct that the abattoir in Gingin is being asked to pay $120 000 to AQIS for costs incurred under previous owners; if not, how much is AQIS demanding the Gingin abattoir pay.

(6) Does the Minister support the approach of AQIS in relation to the collection of monies owed by a company in administration from the new owner after that company has been sold.

(7) Has the Minister considered waiving the debt, given the circumstances and the significant pressure the cattle industry in Western Australia is under following the ban of live exports to Indonesia in 2011.

(8) Will the Minister instruct AQIS to formally declare itself as a creditor where a company owing money to AQIS is placed into administration.

Photo of Joe LudwigJoe Ludwig (Queensland, Australian Labor Party, Minister for Agriculture, Fisheries and Forestry) Share this | | Hansard source

The answer to the senator's questions are as follows:

(1) When a company is in administration and sold as a going concern, all debts of the company, including monies owed to the Commonwealth, are transferred to the new owners.

(2) The department has a responsibility under the Financial Management and Accountability Act 1997 to collect debts owed to the Commonwealth. When the department is made aware that a company has entered into administration a proof of debt is provided to the administrators.

(3) The department has advised me of such accusations and that it denies the accusations.

(4) No. The department has advised the relevant parties of outstanding debt.

(5) No. The department has advised the relevant parties of outstanding debt.

(6) Any monies owed by registered export establishments become a direct cost to the other registered establishments, if not recovered. The department advises me that it is administering its responsibilities under the Financial Management and Accountability Act 1997 and other relevant legislation.

I am comfortable that the department has processes in place to respond to complaints, including internal review and well established external review processes which apply to administrative decisions across Government.

(7) The department has the authority to remit debt under the Export Control (Meat and Meat Products) Orders 2005 but remissions are generally only granted due to exceptional circumstances affecting production at an establishment (such as natural disaster) and not on debt incurred for the provision of services.

(8) Refer part (2) of this response.