NSW: MINISTER WON T REFUND TAXPAYERS FOR FREE HOLIDAY

AAP General News (Australia)
12-15-1998
NSW: MINISTER WON T REFUND TAXPAYERS FOR FREE HOLIDAY

By Neil Sands, State Political Correspondent

SYDNEY, Dec 15 AAP - A senior New South Wales government minister today said he regretted
taking more than $2,000 worth of taxpayer-funded holidays but would not refund the money.

A report by Auditor General Tony Harris found Sydney Water inappropriately gave Urban
Affairs Minister Craig Knowles free accommodation at holiday retreats it owns at Cataract and
Warragamba Dams.

The report also sparked a review of credit cards after finding senior bureaucrats were
using government plastic for "questionable" expenses like nightclubbing, theatre tickets and
restaurant tips.

Mr Harris said the NSW government had created a climate of secrecy similar to that which
allowed WA Inc to flourish in the 1980s.

He accused Mr Knowles of interfering with an opposition freedom of information request
about his trips and said during one weekend break in September 1996 the minister ran up a $180
wine bill, allegations vehemently denied by the minister.

"I do not believe this was appropriate, though lawful," Mr Harris said in his report.

"This is especially because the Minister now has an important regulatory role over Sydney
Water, the performance of which might reasonably be seen to be affected by his accepting such
free benefits."

Mr Knowles, who was responsible for Sydney Water during a contamination scare earlier this
year, said he should have realised the policy giving him free access to the retreats was
inappropriate.

But refunding money would imply he had done something wrong.

"I think with hindsight I'd have preferred not to have had the benefit of the policy but in
that sense I complied with the policy every step of the way as have many other people over
many years," he said.

Mr Knowles said 39 people had received free access to the property since 1991 under the
policy, even though Warragamba Convention Centre rents for $1,020 a weekend and Cataract Manor
$390.

The policy was changed in May this year after it was revealed Environment Minister Pam
Allan had a similar arrangement where she paid a nominal $20 to holiday at a department-owned
lodge on Sydney's exclusive Pittwater.

The state opposition called for Mr Knowles to stand down while the ICAC investigated the
claims against him.

Premier Bob Carr declined to comment on Mr Knowles trips but said he had ordered a review
of senior public servants credit card use following allegations in the report.

"The Auditor-General has found some public servants are doing the wrong thing despite clear
guidelines," he said.

"It may be the only way to ensure chief executive officers and their senior staff do the
right thing is to remove the cards for all but official travel."

AAP ns/kr/de

KEYWORD: AUDITOR NIGHTLEAD

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