PM's Wine Bill: Kirribilli House and the Lodge

[Neville K]

Big party animal John

John Howard's wine bill for Kirribilli House and the Lodge financial year 2000-01 through to 30 April 2007 $192,578



26952 REPRESENTATIVES Wednesday, 23 May 2001
Kirribilli House: Wine Consultant
(Question No. 2259)
Mr Martin Ferguson asked the Prime Minister, upon notice, on 6 February 2001:
(1) Who recommended the need to appoint a wine consultant for Kirribilli House.
(2) How was the consultant selected.
(3) Who is the consultant.
(4) How many hours has the consultant devoted to the selection of wines, and what is the basis of his
or her payment.
(5) From whom were the selected wines purchased.
(6) Is he able to say whether the consultant holds any shares or has an interest in the selected liquor
companies or wineries.
(7) What wines were selected for Kirribilli House or The Lodge as a result of the use of a consultant,
and what was the purchase price for each of the wines selected.
(8) In selecting the wines, what guidelines were put in place as to the needs of the occupants of Kirribilli
House and The Lodge.
Mr Howard—The answer to the honourable member’s question is as follows:
In relation to (1) to (7) I am advised by my department that:
(1), (2) and (3) My department initiated the process for the engagement of a consultant to provide advice
regarding the establishment of a wine cellar and the selection of wines for use at the official
residences. A select tender process was undertaken. Five organisations with a recognised profile
in the industry were invited to respond. Mr Peter Bourne was the successful tenderer.
(4) Under the terms and conditions of the consultancy, the level of remuneration is based on the delivery
of a range of agreed outcomes. A fee of $8,000 has been paid for developing the initial purchasing
strategy and cellar plan. A further $7,200 is payable over three years for a tri-annual cellar
assessment ($800 x 9) and subsequent advice on wine selection.
(5) Selected wines were purchased from many wineries from all states except Queensland.
(6) Mr Bourne is an independent consultant who has advised that he does not have a financial interest
in any winery or retail wine outlet. Under the terms and conditions of the consultancy contract,
Mr Bourne has warranted that no conflict of interest exists, or is likely to arise, in the performance
of the service.
(7) A total of 58 dozen bottles has been recommended by Mr Bourne and subsequently purchased by
the department for cellaring and future use. The average cost of the wine was $24.75 per bottle.
(8) No specific instructions were provided by me. However a specification of requirements was developed
by my department for the consultancy service. This included a requirement that the wines
served at the official residences be Australian and represent a diversity of growing regions. The
consultancy service required the development and implementation of a strategy/cellar plan to ensure
an appropriate standard of Australian wine was always available for use at the official residences.
The strategy supports the showcasing of Australian wines both in the short and long terms.
The strategy/cellar plan addressed:
• a purchasing strategy to meet short, medium and long term requirements at the residences;
• recommendations of particular wines to be purchased for a range of functions;
• suggested sources for purchasing the wine; and
• suggested wine storage locations to meet the department’s requirements.
The decision to establish a quality wine cellar to showcase Australian wines, an industry which
earns nearly $1.5 billion in exports per annum, has been commended by the Winemakers’ Federation
of Australia Inc., who wrote in the following terms:
“May I also take this opportunity to commend you on your interest in developing a quality wine
cellar to showcase the range of Australian wine brands, appropriately representing the diversity
and character of Australia’s wine producing regions. No doubt, the expert advice you received
from Peter Bourne will add substantial value to the quality image of Australian wine and ‘Brand
Australia’ when the wine is presented to visiting dignitaries and Heads of State.

Kirribilli House: Wine Consultant
(Question No. 50)[question No. 50 (Hansard, 16 February 2005, page 245)]
Mr Martin Ferguson asked the Prime Minister, in writing, on 17 November 2004:
Further to the answers to questions No. 2259 (Hansard, 23 May 2001, page 26950) and No 327 (Hansard,
19 August 2002, page 4978) concerning the cost of wines and liquor for Kirribilli House and The
Lodge, since Mr Peter Bourne was appointed as a wine consultant (a) on what dates were purchases of
liquor made for Kirribilli House and The Lodge and (b) what sum was spent on each occasion.
Mr Howard—The answer to the honourable member’s question is as follows:
The precise detail requested in the question is not readily available and I am not prepared to authorise
the commitment of resources required to provide a detailed response. However, I am advised by my
department that expenditure on alcoholic beverages, for cellaring and consumption, during the financial
years since Mr Bourne’s appointment has been $22,668 in 2000-2001, $33,460 in 2001-2002, $27,028
in 2002-2003 and $27,196 in 2003-2004.
2004-2005-2006
THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA
HOUSE OF REPRESENTATIVES
UNANSWERED QUESTIONS IN WRITING
as at
WEDNESDAY, 20 JUNE 2007

7 March 2005
644 MR M. J. FERGUSON: To ask the Prime Minister—
(1) Further to the answer to question No. 50 (Hansard, 16 February 2005, page 245) concerning the
provision of wines and liquor for Kirribilli House and the Lodge, for each year since Mr Bourne was
appointed (a) on what contractual basis has he been engaged and (b) what has been the cost to the
Department.
(2) What is the policy on the cellaring of wines.
(3) What is the volume of alcoholic beverages held for (a) Kirribilli House and (b) the Lodge and what is
its estimated value.






STANDING COMMITTEE ON FINANCE AND PUBLIC ADMINISTRATION: Department of the Prime Minister and Cabinet: Discussion


Date
22 May, 2007
Committee name
STANDING COMMITTEE ON FINANCE AND PUBLIC ADMINISTRATION
Department
Department of the Prime Minister and Cabinet
Page
15
Senator FAULKNER—Can I ask you—unless Senator Fierravanti-Wells knows the answer to this question—whether we still have a wine consultant at Kirribilli House and the Lodge, or have we actually now finally junked the wine consultant?

Ms Hazell—We do not have a wine consultant at Kirribilli House.

Senator FAULKNER—He has actually gone? When did he conclude his work for the Prime Minister and the people of Australia?

Ms Hazell—I am just looking for that. It was quite some time ago. The agreement with the wine consultant expired on 31 October 2004.

Senator FAULKNER—I appreciate that it happened, but wasn’t evidence given at a previous round of Senate estimates that, while there were no thoughts of engaging a new wine consultant, it was possible that the previous wine consultant, who I believe was, if memory serves me correctly, a gentleman by the name of Mr Bourne, might be asked or contracted to provide advice as required? You might recall, or Dr Morauta at least would recall, that that was the situation. Has that occurred at all?

Ms Hazell—No, it has not.

Senator FAULKNER—Why is it believed now—apart from the fact that there has been such negative publicity about the wine consultant—that a wine consultant is not required? Is it because perhaps the residents of Kirribilli House are considered expert enough themselves in this art of wine tasting? I do not know. What is the reason? Why was a wine consultant required previously but is not required now?

Ms Hazell—I would have to take that on notice.

Senator FAULKNER—All the wine that was selected by the wine consultant has actually been guzzled now, hasn’t it?

Ms Hazell—I do not think we could answer that today. We would have to take that on notice.

Dr Morauta—It is a rather complicated question to answer too.

Senator FIERRAVANTI-WELLS—How do you know it was guzzled? It may have just been sipped, Senator Faulkner!

Senator FAULKNER—Would you have figures available for us, Ms Hazell, on the wine consumption at Kirribilli House and the Lodge? These figures have not been provided at Senate estimates now for quite some time, so I thought we might as well just have a close look at it.

Ms Hazell—I do not have figures on wine consumption. I do have some figures available on expenditure on wine.

Senator FAULKNER—That might assist us. At least that is a starting point.

Ms Hazell—They are figures which have expenditure on all alcoholic beverages, not just on wine.

Senator FAULKNER—So the figures you are going to provide are for wine plus other alcoholic beverages?

Ms Hazell—Yes. For 2006-07 to 30 April—and that is purchases paid to 30 April—$30,172.

Senator FAULKNER—I am sorry to take you back here, but let us be clear. I did not hear what you said about the time period. Can we just have that again?

Ms Hazell—For the period 1 July 2006 to 30 April 2007, purchases paid for: $30,172.

Senator FAULKNER—$30,187?

Ms Hazell—$30,172.

Senator FAULKNER—Sorry, $30,172. Thank you.

Senator CHRIS EVANS—Is that Kirribilli or the Lodge?

Ms Hazell—This is a combined figure.

Senator FAULKNER—Are you able to give us the figures for the previous financial year, please?

Ms Hazell—Yes: $25,260.

Senator FAULKNER—That is for the financial year 2005-06. Is that right?

Ms Hazell—Correct.

Senator FAULKNER—That figure is?

Ms Hazell—$25,260.

Senator FAULKNER—Do you have the figures for the financial year 2004-05?

Ms Hazell—Yes: $26,779.

Senator FAULKNER—Do you have the figures for the financial year 2003-04?

Ms Hazell—$27,196.

Senator FAULKNER—This seems to indicate a pattern—that there has been a little more imbibing going on in the current financial year, because the figures to 30 April were significantly higher than the consumption for the three previous full financial years. Is that right?

Ms Hazell—That is correct.

Senator FAULKNER—What is going on there, do you think, in the official establishment? There might be a reason for it. You might be able to explain that massive increase.

Ms Hazell—I expect trying to explain it at this stage would be speculation. I would need to take that on notice and check some facts.

Senator FAULKNER—Have we got any indication of what the pattern of alcohol consumption is at the Lodge and Kirribilli House from 1 May this year—

Ms Hazell—No, we have not.

Senator FAULKNER—either in terms of purchases or planned purchases?

Ms Hazell—No, I do not have that.

Senator FAULKNER—My colleague Senator Forshaw asks, in an aside, a good question: perhaps you could indicate to the committee who the current supplier of these alcoholic beverages is please.

Senator FORSHAW—I might say I recall the discussion about the wine consultant a couple of years ago. He is no longer there, so what is the arrangement about supply? Who supplies the alcohol?

Ms Hazell—I am advised that a number of suppliers supply the alcohol—normal retail suppliers. But if you needed further detail I would have to take that on notice.

Senator FAULKNER—Those figures from the financial year 2003-04 through to 30 April this year—does that total represent $108,880 alcoholic beverages purchased?

[GraemeG]

Hard to imagine with all the purchasing that gets done (or outsourced) by the government for catering functions that there's a need to have a separate, individually contracted 'advisor' for wines for the Prime Ministerial residences...
In this case the actual amounts involved aren't unreasonable, but as ever with long-serving Australian governments, it's the corruptions to the processes that are the most dangerous.
cheers,
Graeme