[Peetwo]

Senators agog at $800,000 air bonuses for Airservices Australia 
 
Labor and Coalition senators have voiced concerns about a spike in the salary and bonus pool for senior executives at Airservices Australia, with one calling for an independent audit.  

The move follows revelations in The Australian this week that fewer than a dozen executives had their salary pool expanded by more than 40 per cent last finan­cial year to nearly $4 million, and within that the bonus pool increased by 60 per cent to nearly $800,000.

The senators also expressed concern at a decision by Airservices to not report a credit card travel rort fraud to police, despite being warned last year that failure to do so could constitute a criminal offence.

Airservices claims the massive rises in the senior executive salary pool between 2012-13 and 2013-14 reflected changes to the composition of the executive team, and an evening-out of an earlier dip in remuneration. 

Airservices initially claimed the average rise in “remuneration” was 2.25 per cent, but under further questioning yesterday admitted this only covered base salary.

With the rise in bonuses, it now claims total average remuneration rose by 5.2 per cent.

Airservices has refused to provide a full breakdown of the executive salary and bonus increases to allow its claims to be tested.

It has also not confirmed or denied inside information reaching The Australian that several senior executives who are not based at Airservices headquarters in Canberra are on travel allowances beyond their salaries of the order of $90,000.

But a spokesman said: “Airservices is a national organisation with significant operations in all capital cities.”

Labor senator Glenn Sterle called for an independent audit, saying: “Someone has to be ­accountable.”

His colleague Alex Gallacher said Airservices had a mono­poly on provision of air traffic control across the nation. “To get a bonus in all this is extraordinary,” Senator Gallacher said.

At a Senate estimates hearing in October, committee members expressed concern when Airservices chief executive Margaret Staib said a credit card fraud perpetrated by a middle manager, which she put at $10,000 to $20,000, had not been reported to law enforcement authorities.

[*]Here is a link for the ASA letter to the Oz - Response to The Australian

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An update to the above post, it would appear that within the last 24hrs the Senators have shifted into top gear, see the following from that man again... :

Senate speeds Airservices inquiry  

• by: EAN HIGGINS
  
• From: The Australian
  
• June 20, 2015 12:00AM
  

Reporter
Sydney




Retired Air Chief Marshal Angus Houston, appointed chair of Airservices Australia in 2012. Picture: Justin Benson-Cooper Source: News Corp Australia

The Senate is fast-tracking an ­inquiry into Airservices Australia following revelations of a blowout in executive pay, alleged credit-card rorting and its failure to gain approval for major capital works.  

The move follows The Aus­tralian’s revelations recently of a 40 per cent-plus rise in senior executive salaries, including a 60 per cent increase in performance bonuses to nearly $800,000 for fewer than a dozen managers.

The inquiry will also look into aviation issues facing Air­services, which runs the nation’s air traffic control system and airport firefighting services, including whether controlled airspace should be extended where radar is available.

It will canvass whether firefighters at regional airports without control towers should be trained to use the Unicom radio service to give basic air-traffic and weather information to pilots.

The inquiry will subpoena Airservices’ financial records to hold an audit and call witnesses, including chairman Angus Houston.

The Senate’s rural, regional affairs and transport legislation committee plans to meet the week after next to map out the investi­gation, with a view to holding public hearings in one or two months.

The committee chairman, Liberal senator Bill Heffernan, said the inquiry would examine “recent revelations” and other matters, but declined to comment further.

The revelations have given Labor and Coalition committee members the impetus to delve into a government-owned organisation that they believe has ­serious ­issues of administration, transparency and accountability.

The committee’s senior Labor senator, Glenn Sterle, noted the revelation in 2012 that then Airservices chief executive Greg Russell had run up a corporate credit-card bill of $243,702 between January 2007 and August 2010.

He resigned soon after the exposure but Airservices defended the credit-card use as acceptable for an executive whose job required him to travel internationally and to host senior aviation officials.

Senator Sterle said the organisation had to be held accountable, saying this applied to replacement chief executive Margaret Staib, the board and Sir Angus.

A Coalition senator said: “It seems to me it has been a seriously uninspected operation.”

At a Senate estimates hearing in October, committee members of all parties castigated Ms Staib, criticising Airservices’ failure to meet its statutory obligation to advise the Senate of major capital works proposals.

They were also incredulous that alleged credit- card fraud by a middle manager had not been reported to police.

Although she promised senators she would consider the matter, Ms Staib never reported the alleged fraud, informing Senator Heffernan by letter that the established loss amounted to less than $3000 and she had used her statutory discretion to not refer it.

Yesterday, Airservices said the bigger salary pool for senior executives reflected changes in the composition of top management and an adjustment after a dip.

It said the average rise in base salary last financial year was 2.25 per cent and, according to its calculations, 5.2 per cent including bonuses.

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Hmm..sounds like the Inquiry will be wide reaching, better order in some popcorn me thinks...

MTF...P2