Cosgrove Clayton: Questions for Oral Answer — Questions to Ministers 
Text is incorporated into the Bound Volume 
Cosgrove Clayton: Questions for Oral Answer — Questions to Ministers 
[Sitting date: 27 February 2013. Volume:687;Page:8240. Text is incorporated into the Bound Volume.] 
5. 
Hon CLAYTON COSGROVE (Labour) 
 to the  
Minister for State Owned Enterprises 
: Prior to his resignation as CEO of Solid Energy on what date was Don Elder’s contract last renewed? 
Hon TONY RYALL (Minister for State Owned Enterprises) 
: 
 I am advised that Dr Elder’s contract was last updated for employment law changes on 31 August 2012 although this is an operational matter. I am advised that no changes were made to pay or entitlements and this has been confirmed by Mr Mark Ford the current chair and Mr John Palmer the former chair. 
Hon Clayton Cosgrove 
: I raise a point of order Mr Speaker. Given the noise could he confirm the date. I could not hear it I am sorry. 
Mr SPEAKER 
: I am sure he can. Minister? 
Hon TONY RYALL 
: I am advised that Dr Elder’s contract was updated for employment law changes on 31 August 2012 although this is an operational matter. 
Hon Clayton Cosgrove 
: Given that 31 August 2012 according to the Companies Office was the last date that the then chair of Solid Energy John Palmer held that office does he think it is appropriate that an outgoing chair on the day he leaves office signs off a new contract thereby locking in the incoming chair to a financial commitment that as a result would mean a far greater amount being paid by the taxpayer for Dr Elder’s subsequent severance pay? 
Hon TONY RYALL 
: As I told the member yesterday that same allegation he made yesterday was incorrect. The contract was updated— 
Hon Clayton Cosgrove 
: I raise a point of order Mr Speaker. I asked the Minister whether given that 31 August according to the Companies Office was the last official date that Mr Palmer was in office it is appropriate for the outgoing chair to sign off a new contract thereby locking in that commitment to the incoming chair which has a direct impact on the severance pay the taxpayer would pay— 
Mr SPEAKER 
: Order! The member has now repeated his question and I think considering the length of the question it is only appropriate that the Minister be given an opportunity to answer it. If I look at  
Hansard 
 I am sure I will see that the Minister was about 2 seconds into his answer before the member raised the point of order which is hardly helpful. Would the Minister like to respond to the question? 
Hon TONY RYALL 
: As chairman Mr Palmer was entitled to enter into whatever arrangement. It is my understanding that Dr Elder’s contract was updated for employment law purposes and there were no changes to the pay or to the entitlements that Dr Elder received. This means that his— 
Hon Trevor Mallard 
: The term. 
Hon TONY RYALL 
: He did not have a fixed-term contract. He was effectively a permanent employee operating under a contract since about the year 2000. There was no change to Dr Elder’s pay or entitlements. Therefore there was no effect on what his contractual arrangements would be during the changes to his employment. I think it is quite wrong for that member to come into the House and make misinformed allegations. It is exactly the same as— 
Hon Clayton Cosgrove 
: I raise a point of order Mr Speaker. My point of order is very similar to Annette King’s. The question was answered. He then started to ramble on with extraneous words. 
Mr SPEAKER 
: Has the member got a further supplementary question? 
Hon Clayton Cosgrove 
: Yes. Is Dr Elder still employed and being paid in any capacity today by Solid Energy? 
Hon TONY RYALL 
: I think in the statement that came out when Dr Elder announced his resignation it was made clear that he was going to be available to the company for a period of time; I think that period of time is still in existence. 
Hon Clayton Cosgrove 
: Does he believe it was appropriate to reward the chief executive with a new contract on the day the outgoing chair officially left office given the severe financial strain the company was under the fact that Solid Energy was under month-to-month monitoring and the Minister was receiving month-to-month reports and further that Dr Elder then subsequently resigned some months later? 
Hon TONY RYALL 
: Dr Elder had an open-ended contract so I think trying to paint it as a renewal is quite inappropriate. I have been assured by both Mr Ford and Mr Palmer that there were no changes to his pay and entitlements that would have affected any of his requirements thereafter. Can I say to that member that he is constantly misrepresenting the situation like he did when he claimed $22 million— 
Hon Clayton Cosgrove 
: I raise a point of order Mr Speaker. I raise the same point of order again. This member has a habit of answering questions and then rambling on with extraneous material. 
Mr SPEAKER 
: It was a very— 
Hon Clayton Cosgrove 
: You have ruled previously with Annette King that once the question is answered the Minister should sit down and we get on with it. I just simply ask for consistency. 
Mr SPEAKER 
: It was a very long question. It was equally a very long answer but a satisfactory one. 
Hon Clayton Cosgrove 
: How can the Minister characterise the re-signing of a contract with the chief executive of Solid Energy as anything but a renewal of a contract? 
Hon TONY RYALL 
: Because the advice that I have received was that it was an open-ended contract that what Mr Palmer was doing was seeking to regularise it for later employment law changes. I have been assured that there were no changes to his employment pay or entitlements that came as a result of that process. 
Hon Clayton Cosgrove 
: Will the Minister give a commitment to the House today that he will initiate an independent inquiry into the governance and so-called financial management of Solid Energy given that last year his Government valued Solid Energy at $1.7 billion as part of the asset sales programme and now according to his own Prime Minister it is worth “less than nothing”? Will he give that commitment to the House today? 
Hon TONY RYALL 
: No I am not going to launch some sort of independent investigation into the governance of Solid Energy. The governance of Solid Energy much of which was appointed under the previous Labour Government was running that company and it was doing very well up until 2011. We had the scoping study. It identified a number of issues. And I agree with Trevor Mallard: the collapse of world coal prices is a most significant factor in this matter. 
Hon Clayton Cosgrove 
: I seek leave to table a document showing that John Palmer was reappointed in 2009— 
Mr SPEAKER 
: The source of the document? 
Hon Clayton Cosgrove 
: I believe it is from the annual report. 
Mr SPEAKER 
: The annual report is very available to all members.