1987 Queensland Cabinet Minutes
Part Two
by Dr Tracey Arklay, Jennifer Menzies and Susan Horton
Cape York International Space Port
In February, the Coordinator-General was put in charge of undertaking the feasibility process for the creation of a Cape York International Space Port, with Cabinet approving $300,000 for the preparation of the next stage of the feasibility study. The first-stage report prepared by the Institution of Engineers recommended a launch site on the Western side of Cape York (Dec 50752).
With the scoping studies completed in July, it was proposed those reports be published and distributed to organisations that had expressed an interest in the construction and operation of the space port. As well, the government would commence drafting legislation to cover the activity of the space port (Dec 52117 Dec 51353 Dec 52429 Dec 53105).
On 7th September, the issue of the space port was raised again, to extend the time of the proposal. The five technical reports to be published the Institute of Engineers Australia on the project were delayed.
There was both national and international interest in the space port, and by December the government had received 58 registrations of interest. Cabinet agreed to ensure the names of all interested participants were released publicly, and that there was the closest possible cooperation with the Federal Government on the matter (Dec 53105).
Brisbane developments
Cabinet considered many development plans for the Brisbane and the Gold Coast. In January (Dec 50587), the Hamilton Wharves Strategic Plan was considered by Cabinet. While a fifteen year lease was offered to Brett’s Wharves and the redevelopment of a Hamilton cold store was considered urgent, future development plans remained dependent on further reports being considered. Most of the land was either owned by the Crown or the Port of Brisbane and was subject to leases. On August 10 (Dec 52208), the Brett’s/Essington proposal was approved, which included plans for the redevelopment of the Hamilton cold stores as a tourist attraction with ‘an old world seaport atmosphere with restaurants, amusement arcades and tavern with provision for a future cruise ship terminal’.
One of the most controversial projects was that of the Central Place Suite Development — Mainsel Investments ‘world’s largest building’ proposal. On 31st August, Minister for Local Government, Main Roads and Racing Russ Hinze introduced a proposal noting special legislation would be required for this complex (Dec 52371). In this submission, Hinze notes the public interest surrounding this development and states that he doubts adequate knowledge exists to build this complex — thus the requirement of special legislation. Cabinet decided that special legislation should be prepared during the current session of Parliament. Later, Mike Ahern would attribute this Cabinet discussion as the beginning of the end for the Bjelke-Petersen premiership.
The controversy was also taken up in Parliament when, on 27 October, Liberal Party member Denver Beanland produced a petition with twenty signatories requesting that Brisbane City Council town-planning process would prevail in relation to the Central Place Suite Development. On 12 November, Beanland produced another petition with a few more signatories (Queensland Parliamentary Debates, 1987: Vol 307: pp. 3421, 4063).
Sensing weakness, Beanland asked the Premier to table the legal advice that the latter claimed had warned heavy damages would be liable should the government attempt to stall the project. Bjelke-Petersen obfuscated, providing the ALP’s Tom Burns with the opportunity to state: ‘I refer to the continuing saga of the world’s tallest building, and the twice daily meetings that have been held to resolve the differences between the Premier and his party on this issue.’
On the 10 November, Bjelke-Petersen brought a restricted submission to Cabinet regarding a Special Developments Bill to facilitate the now 110-storey building (Dec 52956). The intention of the Bill was to override the Brisbane City Council planning process because of the ‘limitations’ of its building approval procedures and standards in dealing with this project. Cabinet added in the amendment that it would only deal with projects of more than $2 million. On the removal of Bjelke-Petersen from office, Russ Hinze told Parliament: ‘I have grave doubts that the Opposition will see in Brisbane the tallest building in Queensland’ (QPD, 1987: vol 307: p 4765).
On 2nd February (Dec 50607), the Minister for Lands, Forestry, Mapping and Surveying Bill Glasson brought a submission on a proposed development of land below Queen Street — from Creek Street, past Post Office Square to the northern end of Queen Street Mall — by Reliant Investments. It was deferred to 9th February. In the submission (Dec 50638), which was deferred again to 16th February, Glasson’s approach seems somewhat contradictory: he is almost quizzical about why the proposal by Reliant Investments is being considered, acknowledging that their status as preferred developer is because they came up with the idea and initiated discussions with the government. He states, ‘Neither I nor the Land Administration Commission have any objection to a public tender, expressions of interest or other public competition course of action being adopted.’ The principals of Reliant Industries were Ted Sinnathamby and Robert Sharpless. Documentation from them is attached to the submission and provides a useful insight into doing business: they nominate their intended use of Thiess Watkins as the builder, earlier referring to them as respectable Queensland builders, along with FA Pidgeon & Son, the developers of the Roma Street and Waterfront place sites. On 16th February, Cabinet again considered this proposed development, and grants a permit for Reliant Investments to occupy, subject to conditions (Dec 50761). Cabinet also adds the rider that the development of the Suncorp Post Office Square extension proceeds as originally envisaged, independently or in partnership with Reliant Investments.
Development plans for the Queen Street precinct were brought to Cabinet throughout the year, and on 16th March Cabinet approved a Bill for the construction and further development of the Queen Street Mall (including a bus way) (Dec 50950). Traders were concerned about the effect on business during this period, and Russ Hinze flagged his intention to speak with the Lord Mayor regarding payment by the Brisbane City Council of some compensation. It was decided that if Council agreed then these provisions would be included in the Bill. On 21st April, Cabinet considered an oral submission by Russ Hinze regarding a Queen Street Underground Mall between Edward and Queen Street (Dec 51269). Details are lacking as there was no written submission, but Cabinet ‘noted and endorsed’ the outcome of discussions as detailed by Hinze.
Cabinet also approved the Premier’s submission regarding development of Waterfront Place by FA Pidgeon & Son (Dec 50872). This involved extinguishing a Deed of Grant in Trust to Brisbane City Council, and the reversion to crown land (and then, presumably, free holding of the crown land to Pidgeon). The Council had not responded formally to this proposal but the developer expressed some urgency in finalising the decision.
In April, a submission by Bill Glasson regarded the former naval stores at Kangaroo point cliffs requesting rezoning from parks and recreation for the purposes of car parking was brought to Cabinet (Dec 51267). The site had been purchased from the Commonwealth by the Brisbane City Council on the condition that the site would preserve National Trust status. It was deferred to 27th April (Dec 51270), when the submission was withdrawn. However, submissions continued to be taken to Cabinet (see Dec 51300). Proposals included a restaurant development, first considered in February but subsequently withdrawn (Dec 50713). According to the 27th April submission, Cabinet sought its reconsideration on 21st April when the submission relating to the car park for the naval stores was first considered. Cabinet noted the proposal and agreed that road closures as sought by the developer would not be allowed to proceed (see also Dec 52400).
Seymour Developments were granted a special lease to develop Admiralty Wharf ‘Australian Colonial Wharf Style’ (Dec 53206). The plan included ‘an aquarium of a size to make it unique in Australia’ as well as restaurants, retail, boardwalks and a plaza. Another submission (Dec 53008) granted permission to demolish the Maritime Building and McCafferty’s building to start work on the site.
Fortitude Valley was another area ripe for development. Decision 51703 discussed the redevelopment of the land above Brunswick Street (now Fortitude Valley) train station. Brought forward by Transport Minister Don Lane, and with no public tender process undertaken, Cabinet approved developer Barry Williams and Associates Pty Ltd to be granted a 99-year lease. Included in the deal was the provision of an off-street bus station.
Local Government
On 23 February, Cabinet approved preparation of an amendment to pecuniary interest requirements in the City of Brisbane Act to mirror a similar amendment being prepared to the Local Government Act (Dec 49353). This was prompted by a Supreme Court finding and the amendment would mean members were not disqualified from ‘taking part in a discussion of or vote on a matter in which they have a pecuniary interest’ (Dec 50789).
On 16th March, Cabinet approved the introduction of the Bill (Dec 50949). Clause 17 states that if an alderman has any conflict of interest in a matter before the Council, he should disclose it as soon as practicable ‘and shall not take part in the consideration or discussion of, or vote on any question with respect to the contract, or proposed contract, or other matter’. This process is different from that more recently adopted by local councils and was the subject of the Crime and Corruption Commission’s Operation Belcarra Report.
Social Policy
Many of the social issues that feature in government policy today, were also on the agenda in 1987. The Government established a Task Force on Domestic Violence to review legislation, take submissions and advance proposals ‘as may assist in alleviating and curtailing the problem of Domestic Violence in Queensland’. The increase in emergency accommodation needed by women and their children ‘indicates a growing problem which could make domestic violence a significant issue for the 1990s (Dec 52206).
Public Health
On 18th May, Cabinet approved the introduction of warnings for cigarettes and other tobacco products at the bottom of the front and back of the package. (Dec 51431) The four warnings were — smoking causes lung cancer; smoking causes heart disease; smoking damages your lung; smoking reduces your fitness. Prior to this, on 27th April, Cabinet prohibited smoking on buses (Dec 51277).
On 5th May, Cabinet approved Queensland Health 2000: public health campaigns directed at reduction of deaths by accident and heart disease (Dec 51333).
In 1987, free-standing day surgery centres were licensed by the state for the first time. . The centres provided a more cost effective model of surgery for minor procedures (Dec 51570).
Health Programs
Cabinet approved a submission to the Commonwealth of a preliminary estimate of expenditure for 1987–88 for the Aboriginal Health Program. This was a Commonwealth funded program with the state as service provider. The report includes the introduction ‘following the 1967 Referendum when responsibility for Aboriginal welfare passed to the Commonwealth, it was discovered that Aboriginal people throughout Australia had a special health problem …’ It went on to outline a goal similar to ‘closing the gap’ in health outcomes, noting this ‘involves behavioural changes in Aboriginal health concepts, a long term project’ (Dec 51335).
Nursing Education
The transition of nurse education from hospitals to universities was in its infancy. Financial considerations determined the government’s attitude to the change. Cabinet was clear that nurse education would not be transferred in Queensland to higher education institutions unless the Commonwealth agreed to fully fund it (Dec 51584 and 52727).
Methadone Treatment
On 23 February, Cabinet approved Ahern’s submission to the Commonwealth for funding for Queensland as part of the National Campaign Against Drug Abuse. There was a matched funding arrangement with the Commonwealth. Queensland’s proposal included further development of the existing Methadone Program and the introduction of methadone treatment at some regional centres. (Dec 50781).
Education
In February, Education Minister Powell brought a secret submission proposing major amendments to the Education Act. Its purpose was to — in the context of the Commonwealth’s ‘encroachment’ through obligations resulting from its role as funder — establish the role of the State Government in relation to non-government schools, increase the profile of TAFE within the department, establish advisory councils for non-government education and education for economic development and replace a number of boards with the Queensland Council for Accreditation of Courses in Post-Compulsory Education (Dec 50627).
The impacts of budget reductions to education were being felt. The 1987–88 budget didn’t allow for any increase in teacher numbers. A reduction of 718 teachers would be necessary from January 1988 to stay within budget, despite the increase of 5,000 new pupils. As well as this, they wouldn’t be able to have an intake of young teachers graduating at the end of 1987 and a ‘rationalisation’ of teacher aide positions. These effects were ‘becoming increasingly apparent to the general community’ (Dec 52985).
In April, Cabinet approved the release of a Board of Teacher Education report Project 21 — Teachers for the 21st Century that was the culmination of a two year review (Dec 51167).
Dispute at Bjelke-Petersen Dam
The Bjelke-Petersen Dam near Cherbourg started construction in 1984. In 1987 with one year left to go in the construction phase, disputes commenced with members of the Federated Engine Drivers’ and Firemen’s Association (Queensland Branch) striking over demands for increased pay and an agreement that covered the work (Dec 51466). Cabinet started seeing submissions regarding the dispute from 20 May 1987 (Dec. 51466). Over the next few months more submissions were brought to Cabinet — one detailing the current state of the dispute (Dec 51939), others discussing the likely implications for other construction sites if these demands were met. In June (Dec 51580) it was decided that contempt of court proceedings be initiated when, despite a Supreme Court injunction, workers decided to continue their strike for another two weeks (see Dec 51939) As the dispute continued (Dec 52072) a statement of claims for damages and injunction relief was discussed with Cabinet. As no settlement was forthcoming (Dec 52121) an oral submission discussed the fact that the company — White industries — building the dam might have to surrender the contract.
On 14 December, under Premier Ahern, (Dec 53172) an agreement was reached between the government and the company. As a result of the extended strike it was agreed the Contractor for the Bjelke-Petersen Dam, White Industries (Qld) Pty Ltd, ‘adopt alternative measures to secure a resumption of work on the dam’. Cabinet approved that the Queensland Water Resources Commission discuss with the Contractor a compensation payment of $1,800,000 for the additional costs incurred payable to White Industries on the condition that the settlement and agreement remain confidential. Part of the terms of settlement was that workers would not be paid rates higher than the award.
Coal
Negotiations with Mining Companies
Under Treasurer Sir Leo Hielscher cites Bjelke-Petersen as a major influence in the transformation of the Queensland coal industry. Most coal in Queensland was mined underground until 1968, and the most productive minefields were in West Moreton. By 1970, the quantity of coal mined by open cut was nearly seventy per cent, and Central Queensland was the pre-eminent area of coal production. Bjelke-Petersen’s negotiations with mining companies focused on infrastructure development (accommodation for workers, roads and services) and the expectation companies would meet the cost of building railways by way of security deposit. The deposit (with interest) would be refunded if companies met targets for quantity of coal railed to port.
On 19th January, Cabinet noted Brian Austin’s submission on coal royalty calculations and the notional capital deduction. It concluded the government had been ‘clearly far too generous’ in the past with the Central Queensland Coal Association and new arrangements for Utah would no longer include a notional capital deduction and would only have regard to the operating contribution to the Hay Point facility (Dec 50473).
On the same day, Cabinet approved the introduction of the Hay Point (Ratification of Agreements) Bill. The proposed Bill ratified agreements from 1985 between Harbours Corporation of Queensland and members of the Central Queensland Coal Association regarding operation of tug boats. Martin Tenni was the introducing Minister. The companies included Utah Development, Utah Queensland Coal, Mitsubishi, AMP Society, Umal Consolidated Company, Pan-Continental, General Electric Minerals, Bell Coal, UB Minerals (including Bowen Basin minerals), QCT Minerals and QCT Investment (Dec 50474). A week later, Cabinet approved an adjustment to the Central Queensland Coal Associates Agreement on Mining, providing Utah with approval to export high-ash coking coal as steaming coal. They noted the downturn in the coal market (Dec 50561).
On 13th April, on the basis of an oral submission from Deputy Premier Bill Gunn, Cabinet approved a specific rate for freighting low-value coal from Oakey Creek to Gladstone. In May, the Premier brought an oral submission on transport of coal from the West Moreton coalfield, noting that the West Moreton mines increasingly had an export focus. Costs of rail freight were an issue, and Cabinet approved new arrangements. Cabinet later agreed to open up 217.7 hectares in the Clermont region to extend the Central Queensland Coal Area (Dec 51655). Earlier in the year, Brian Austin provided Cabinet with a submission outlining the negative impact of a downturn in the Japanese steel market on Queensland’s coal export income (Dec 50628). Cabinet acknowledged the fewer number of submissions on coal developments and ruminated on the opportunities in the Minyango area of Central Queensland (Dec 52363).
On 2nd March, Cabinet approved a new Coal Stockpile Policy. Austin identified that savings could be made by strategically reducing coal stockpiles at power stations. Electricity tariffs were affected by the Queensland Electricity Commission’s commitment to always having eight weeks’ supply on hand, thereby committing to full supply. The new policy would make savings by focusing on essential services and placing some barriers to triggering ‘out of merit’ supply. The previous policy seems to have been a buffer against industrial action. (Dec 50817).
On 28th September, on the basis of an oral submission from the Premier, Cabinet endorsed provision of a letter of assurance to Lang Hancock regarding the availability of coal (Dec 52604).
The Gazi Project, Turkey
On 27th January, Cabinet considered a report from the Premier on his recent trip to Turkey to progress the Gazi Project, a proposal for a power station fuelled by Queensland coal. There was a separate proposal for a port and coal-handling terminal. He reports his trip as generally positive but inconclusive. Noted were currency issues, tensions between the project proponents and the Turkish Government, and the Turkish Government’s reluctance to ‘share commercial risks’. He and the Turkish Energy Minister signed a Heads of Agreement on 19 January (Dec 50593). The Courier-Mail reported on 17th January that the Premier was confident he could secure a deal with Turkey. On 2nd February, Cabinet approved Queensland Government support to a consortia registering interest in managing a Turkish railway project. It also endorsed the participation of Queensland Rail staff as consultants (Dec 50630). However, late in the year, Cabinet noted a secret submission on the Gaza project. It was going downhill quickly, though the Turkish Government was apparently pushing for Bjelke-Petersen to sign the deal (Dec 52900).
On 31st August, Cabinet considered Queensland’s potential role in the construction of a major coal-fired power station and port in Egypt. It was presented as an opportunity to secure a long-term market for Queensland coal. There was an expectation for the Government to provide $200,000 to meet the World Bank requirements for a scoping study. It was decided to hold off on this until decisions were made regarding the Turkey project (Dec 52362). Cabinet subsequently agreed to participation in a Phase 1 study at a cost of $200,000, with additional funds to be provided by the Department of Mines (Dec 52515). On 19th October, Cabinet agreed to set up an Institute of Energy and Earth Resources through CSIRO, with $200,000 to be funded from Department of Mines (Dec 52729).
Gas
Natural gas was becoming a significant industry in Queensland. To catch up with this increased activity the Gas Act 1965–1985 was amended (Dec 52366). The main concern was to establish a competitive environment in Queensland for the expansion of the industry but the government were also concerned that there would be a reliable and safe supply of gas for Queensland consumers.
To facilitate the industry, the government decided to own, operate and construct Stage 1 of the natural gas pipeline linking Surat and the Denison Basin to Gladstone. The submission acknowledges the advantages of government ownership including to increase the competitiveness of Queensland industries by reducing fuel costs (Dec 51932).
In February, Cabinet approved negotiating position regarding the sale of Cooper Basin Natural Gas Interstate, in particular to South Australia. Cabinet were clear that this could only go ahead if supply to Queensland was not affected and that gas be conserved to meet Queensland’s longer-term needs (Dec 50804).
In May, Cabinet supported granting petroleum leases on the Brumby Gas Field in the Cooper Basin to Santos and a number of other companies. Again, Cabinet was concerned that the gas would be directly sent to other jurisdictions and that the current legislation did not allow for the government to impose conditions on the lessees that controlled the destination of the oil and gas. The Solicitor-General advised that the Act did not provide this authority. Cabinet reiterated that they wanted the resources of the Cooper Basin to support future large-scale energy needs within Queensland (Dec 51342).
Agrarian Socialism and other good causes
Sugar
Despite the declining economic conditions in 1987, some industries continued to receive favourable government attention. Sugar had long been an important product for Queensland, and during the year several submissions came to Cabinet regarding the Commonwealth State Agreement on Adjustment Assistance to Sugar Cane Growers (Dec 50543); individual levies on particular Mills (50775); and the drafting of a Bill to rationalise Far North Queensland Sugar Milling (Dec 50811). Other discussions also occurred including drafting a Bill to ensure the Sugar Board’s role continued beyond 30th June, when it would have ceased as a result of a sunset clause in existing legislation (Dec 50894). In September, Cabinet agreed to grant $102,162 for tram works for the Babinda Cooperative Sugar Mill, provided the Commonwealth grant of $204,235 was met (Dec 52548).
Peanuts
Other industries were also given significant assistance by the National Party government. For example, on 19th October, the Premier presented Cabinet with a submission regarding financial assistance to the peanut marketing board. The background for this issue began in 1983 when Cabinet agreed to provide financial assistance to the board through two loans — the first for $1.8 million and the second for $1.77 million — on the grounds that the industry was suffering due to long-standing drought. The loans were supposed to be over ten years, but Submission 52787 saw Cabinet agree to wipe out the outstanding balance of $1,727,875.06 in its entirety.
Gun Control
On 9th August 1987, a mass shooting known as the Hoddle Street Massacre occurred in Clifton Hill, a suburb of Melbourne. Seven people died and he caused serious injury to 19 others. The Premier was to attend a meeting on 22nd December, called by the Prime Minister, to discuss tightening gun control. It was agreed there was a need to reduce the risk of criminals and unbalanced people accessing guns but Queensland would not agree to the NSW approach — which was characterised as almost a ban on private ownership. Queensland would agree to ban the sale of .22 calibre semi-automatics, except to primary producers, professional shooters and members of recognised gun clubs. (Dec 53190)
ABOUT THE AUTHORS
DR TRACEY ARKLAY
Tracey Arklay is a Senior Lecturer in the School of Government and International Relations at Griffith University and a Research Fellow with Griffith’s Centre for Governance and Public Policy.
Tracey is the author of Arthur Fadden: A Political Silhouette(Australian Scholarly Publishing, 2015) and co-author of The Ayes Have It: A History of the Queensland Parliament 1957–89 (ANU Press, 2010).
JENNIFER MENZIES
Jenny is Senior Associate in the Policy Innovation Hub at Griffith University. Jenny has over 25 years experience in policy and public administration in both the State and Commonwealth Governments.
As a senior executive within the Queensland Department of the Premier and Cabinet she developed the government’s strategic policy agenda including the Smart State Policy.
She was Cabinet Secretary from 2001 to 2004 and the inaugural Secretary for the Council for the Australian Federation from 2007 to 2009 and a member of the Commonweath Grants Commission 2011 -2016. She publishes in the fields of caretaker conventions, federalism and intergovernmental relations.
Susan Horton
Susan’s thirty-five year career in the Queensland Public Service included a substantial period in the provision and management of service delivery to children at risk, young people and their families; managing the implementation of Freedom of Information legislation in a welfare department, including notably the release of documents to former Children in Care. She was a senior executive within the Department of the Premier and Cabinet and was responsible for Commonwealth State relations, Social Policy and the development of infrastructure for policy and performance improvement. Susan was Cabinet Secretary from July 2006 to October 2007.
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