A stoush brewing over plans to restructure Public Trustee is heating up

Attorney-General Guy Barnett says the Liberal government is focused on ensuring the Public Trustee is delivering services to vulnerable Tasmanians.

Walk against elder abuse in Hobart CBD. Public Trustee CEO Todd Kennedy. Picture: Linda Higginson

Treasurer Guy Barnett says the Liberals are focused on ensuring the Public Trustee is delivering services to vulnerable Tasmanians — despite the government being accused of responsibility for “a longstanding funding shortfall”.

The government underfunded the Public Trustee’s delivery of services by $3m last financial year — despite an independent report recommending a full allocation. It has since lifted funding in the budget.

Mr Barnett’s plan to hive off the services Public Trustee’s profitable services to the private sector has met strong opposition from the Public Trustee’s Board and non-government MPs.

On Friday, he said he was pushing ahead regardless.

Attorney-General Guy Barnett speaks to the media in Hobart on Friday, December 6, 2024.

“We’re focused on doing what’s best for the most vulnerable Tasmanians,” Mr Barnett said.

“That’s why our government is so focused on this reform. it’s really important.

“We want the public trustee to focus on the most vulnerable and not to be dealing in the commercial market where other providers can provide that service, if they’re just focused on getting profits out of the commercial market, that’s not their main game.”

Sixty per cent of the Public Trustee’s work is meeting the requirements of its Community Service Obligation to administer the estates, trusts, and the financial affairs of people it represents.

The 2022 Bugg Report recommended the Attorney General and the Treasurer “fully fund the Public Trustee’s net avoidable costs of service provision in the next CSO agreement, with funding escalation to reflect demand growth”.

In 2023/24 the Public Trustee spent $6.8m meeting its Community Service Obligations. The government gave it $4.5m. The 2024/25 budget has lifted funding to $7m.

On Thursday, the Public Trustee’s Board noted the difficulties.

“In the past, the outdated Community Service Obligation (CSO) thresholds and long-standing funding shortfall, has led to significant resource constraints and restricted economies of scale being achieved, negatively impacting the client experience and creating unmanageable workloads for frontline staff.”

David O'Byrne Independent member for Franklin. Picture: Nikki Davis-Jones

Independent MP David O’Byrne said it was a bit rich for the government to start talking about its concern for vulnerable Tasmanians.

“Chronic underfunding over the years has undermined the Trustee’s work in implementing sweeping reforms,” he said.

“It’s madness to think the solution lies in carving off the revenue-making measures that underpin the Trustee’s community services.

“Given the opposition to this reform among non-government MPs, it’s unlikely the reform will pass parliament.

“Therefore I urge the government to drop this ill-considered plan and turn its attention to properly funding the Public Trustee.”

Labor’s Rebecca White also said the plan should be dropped.

“It’s time for the government to ditch the idea and commit to working with the Public Trustee instead of pulling it apart,” she said.

“The Attorney-General admitted that his plan to sell part of the Public Trustee would need to be approved by the Parliament but given it’s only the Liberals that support this “reform” it is set to fail.

“The Attorney-General failed to present any justification for progressing with his government’s plan to privatise the Public Trustee and there is no certainty that some of the most vulnerable Tasmanians who rely upon the Public Trustee will be better off as clients of a private company.”

Vow to fight plan for Trustee restructure

INITIAL: Opposition, minor party and independent MPs have flagged a bitter fight against minority Liberal government plans to restructure the Public Trustee.

The government released its response to a WLF Accounting & Advisory review of the Public Trustee it received last week shortly before a Government Business Enterprise committee hearing into the Trustee began on Thursday.

Attorney-General Guy Barnett said he wanted the Trustee to become either a statutory authority: either stand-alone or as part of a government department.

Minister Guy Barnett. GBE hearings 2024. Picture: Nikki Davis-Jones

The Public Trustee’s board immediately rejected the report’s key recommendation and the government’s plan.

“The analysis has found that the current model is incompatible with the needs of Tasmanians and the current GBE structure,” Mr Barnett said.

“The government has accepted this advice and will move to adopt a more efficient model that brings the core services that are most important closer to government.”

He said the government would consider its options and seek feedback to finalise the new model by 31 March 2025

During Thursday’s committee hearing, non-government MPs took turns congratulating the CEO and Chair of the Public Trustee for their success in turning the organisation around – and vowing to oppose the changes Mr Barnett flagged.

Rebecca White Labor member for Lyons. Final day of state parliament for 2024. Picture: Nikki Davis-Jones

Labor’s Rebecca White told Mr Barnett the government was wasting its time if it thought it would prevail with such a disruptive plan.

“The Government Business Enterprise Act says a GBE can’t dispose of a main undertaking without the consent of parliament,” she said.

“Given the government is in minority why are you disrupting the Public Trustee and all of their clients when it’s very unlikely you have the support of the parliament?

“Why not decide to just do away with this complete waste of time and instead invest in the Public Trustee so they can support people?”

Mr Barnett disagreed with Greens leader Rosalie Woodruff’s description of the latest review process as “a disgraceful stitch-up” as independent MP Kristy Johnston also rejected the review plan.

“It reads like a reverse-engineered document to justify the Government’s decision to slice and dice the Public Trustee and privatise the only parts that make money while throwing vulnerable Tasmanians under the bus,” she said. 

In a media release, the board of the Public Trustee also rejected the report’s central conclusions.

“The Board is of the view that the recommended alternative structure for consideration is very similar to the Public Trustee’s existing structure yet comes at a significant cost in terms of expense, government disruption to the organisation and to the clients it supports,” it said.

“The recent unexpected announcement by government to restructure the Public Trustee has created great uncertainty for the clients, supporters, stakeholders and staff of the Public Trustee.

“Privatisation of commercial services is not in the interests of the community, as all Tasmanians deserve cost-effective options for the provision of independent executor, trustee and attorney services – the role of Public Trustees around Australia.”