It’s not news to anyone that Barry O’Farrell resigned as New South Wales Premier after giving ICAC (the New South Wales anti-corruption body) misleading information over a bottle of 1959 Penfolds Grange he received as a gift from Nick Di Girolamo, a person associated with a Sydney Water contractor — Australian Water Holdings (AWH).
There are two current enquiries by ICAC set up to investigate the allegations of corruption as well as solicitation, receiving and concealing payments in relation to public officials in NSW
Opinions vary on whether O’Farrell did the right thing by resigning and there has been plenty of discussion in other places without repeating it here. Mike Carlton in the SMH
was probably one of the best with an offering that commenced with:
Tasting Notes: The 1959 Chateau d'icac.
Celebrated vigneron Nick Di Girolamo has excelled himself with this rare and striking Premier Grand Cru. Selected from old grapes of wrath vines at the Obeid family's Mt Corruption vineyard in NSW and cellared in Rum Corps oak casks, the wine reveals hidden gifts of subtle complexity.
The brown nose offers a concentrated aroma of decaying cattle dung, complexed by persistent spice notes of rotten fish and more than a hint of unsavoury greased palm. An intense palate of bitter fruits displays weak backbone and piss-in-pocket acidity, with a lingering after-palate heightened by a signed "thank you" note of unmistakable provenance.
A wine not to be forgotten.
He then goes on to discuss Barry O’Farrell’s political career and where he went wrong, namely:
O'Farrell's true fault was his failure to keep his promise to root out the endemic corruption of the NSW Liberals. He baulked at bold political reform.
On top of that, a federal government minister has stated to the same enquiry that he didn’t see a problem with working for AWH for somewhere between 25 and 45 hours a year for a salary of $200,000. Senator Arthur Sinodinos, the minister in question, also disclaimed all knowledge of a $75,000 donation to the Liberal Party while he was a director of AWH and also treasurer of the Liberal Party
. Business Review Weekly
relates the history of Australian Water Holdings from an inauspicious non-profit holding company to its ‘modernisation’ as a for-profit company — due to a badly written contract between the firm and Sydney Water, it planned to obtain a major contract without having to tender. Direct lobbying of ministers was part of the plan, so as to bypass Sydney Water processes in gaining the contract.
Most accounts of this affair so far suggest that Barry O’Farrell is a decent person and was concerned with the influence of corrupt public officials in NSW. David Marr, writing in The Guardian
But under O’Farrell Icac showed the deeply ingrained corruption of NSW didn’t begin and end with Labor. His own side was punished. Now the Liberals have taken the biggest hit of all.
There is a larger issue here. Since when is a bottle of wine estimated to cost $3,000 such a ‘routine’ occurrence that one would forget entirely to declare it at the time and completely forget about it when questioned by an anti-corruption body?
Lets face it, $3,000 is a lot of money for most people. While most Australians have heard of Penfolds Grange, very few would routinely go to the local bottle shop and purchase some from the year of their birth, if at all.
When the former assistant treasurer of Australia attempts to make a joke about travelling time when asked if $200,000 is reasonable compensation for 25 to 45 hours work in a year, it demonstrates the lack of understanding Senator Sinodinos has with the concept of living on or under the average Australian wage which is currently $1483.50
per week: that would allow the purchase of a single 1959 Grange bottle every three weeks or so, after allowing for tax and superannuation deductions.
Some might consider Senator Sinodinos to have been underpaid for the ‘influence’ he could muster for his employer. That is the real issue here. These politicians are perceived as being able to influence the actions of government and government entities so that firms are, firstly, comfortable employing them as lobbyists to identify ‘key stakeholders’ so as to influence decisions and, secondly, paying sums that are beyond the comprehension of most Australians to the identified stakeholders.
Barry O’Farrell is not the only one who has ‘fallen on his sword’ in the past 30 or so years for neglecting to declare a gift that could be construed as excessive.
From the Liberals’ Michael MacKellar’s false declaration that a television was a black and white model, rather than a colour model, to save on import duty in 1982, through the ALP’s Mick Young who failed to declare a Paddington Bear in 1984, with a brief detour to Queensland’s ‘moonlight state’ era in the 80’s and 90’s, Australian politicians have a long and infamous history of either believing they have an entitlement greater than that of the ‘mug punter’ who elects them or are so gullible they can’t see the compromises that accepting the gift or excessive salary implies they will make.
The Federal Finance Department publishes the value of ‘entitlements’ given to former politicians on their website. A link to the relevant page is here
for the period 1 January 2013 until 30 June 2013. Other periods are also available from the website.
Politicians seem to believe that they have an entitlement greater than you or I. Otherwise why have they allowed themselves to be able to claim travel, communications costs and so on after they leave office? — and in some cases tens of thousands of dollars in a six month period.
According to the listing above, the taxpayer funds travel expenses for politicians who, in some cases, were voted out of office decades ago. In the case of former prime ministers some leeway is understandable as some groups that had dealings with the person while they were in power may need to finish up official business — it is hardly likely to be a requirement of the job even five years later, let alone 30 years. There is also an argument that politicians are ‘on call’ 24 hours a day — well, so are church ministers, doctors and a considerable number of people who work in essential or health care environments. In most other cases, part of the wage that the worker is paid is attributable to the ‘on call’ requirement rather than having the ability to gain some benefit from a former employer decades later.
Another variation, and the final example, of this sense of entitlement is shown in a Bruce Hawker article on The Guardian’s website
After last week's controversy which led to the resignation of Barry O'Farrell, we started hearing complaints and calls from the Coalition for the corruption watchdog's powers to be reduced. This is not new: it happened very early in Icac's life.
ICAC’s first investigation was in 1990 when a number of Liberal and ALP State Members of Parliament were investigated and found to be creating a ‘climate conducive to corruption’ in relation to some land dealings in the north of the State. The Liberal and National Parties who were in Government at the time —
… launched a broadside against the body they had helped establish just a year before. As chief of staff to then opposition leader Bob Carr, I [Bruce Hawker] watched with a mix of bemusement and amusement as they fulminated, like Dr Frankenstein, against the monster who was meant to destroy Labor, not their own.
It seems the more things change, the more they stay the same. The Brisbane Times
reported in October 2012:
The [Queensland] state government has announced a review of the legislation which governs the crime and corruption watchdog claiming it has been used as a ‘‘political football’’.
Attorney-General Jarrod Bleijie said the review — to be headed up by a former High Court judge and university professor — of the Crime and Misconduct Act 2001 would focus on allowing the watchdog to do its job without ‘‘being drawn into political debates’’.
This review is about depoliticising the operation of the CMC
The Queensland state government in October 2012 was led by Campbell Newman who was subject to investigation by the Crime and Misconduct Commission (Queensland’s version of ICAC), at the request of the then ALP government, during the 2012 election campaign. Ironically, Campbell Newman has been named in the current ICAC enquiries
as receiving a $5000 donation to meet with people from AWH while in the role of Lord Mayor of Brisbane. His office claims that the money was returned.
In an era when people are being told they will not be able to claim a pension until they are 70, when in Queensland people are being asked to make ‘Strong Choices’ to help the state government set the budget, and the federal government is telling us we all will have to make sacrifices, how can politicians continue to claim they understand how the rest of us live when $3,000 bottles of wine, $5,000 fees for attending meetings or $200,000 salaries for under a week’s work per year are considered acceptable until the anti-corruption commission questions the motives? Are their values so warped or is there another explanation? What do you think?