Sharon Claydon (Newcastle, Australian Labor Party) Share this | Link to this | Hansard source

This week, with the passing of one of Australia's most venerated politicians, we have been reminded of the enormous honour and responsibility that comes with public office, not just the achievements. For Gough Whitlam, politics mattered. It was an honourable profession and the parliament was a worthy instrument for change. Devoting one's life to public service and to the people you have been elected to represent is indeed an honour. With this honour comes enormous responsibility. Today, I wish to bring to the House's attention the very real consequences for those who fail to take seriously their responsibility to act with honour and integrity—what this means for democracy and governance and, most importantly, what this monumental breach of trust means for the people of Newcastle.

This is a story that has been very publicly exposed following forensic investigations over many months. It is not a story that has been voluntarily told. It is a story of betrayal and dishonesty—betrayal of the people of Newcastle through a series of dishonourable and seemingly illegal actions. Bit by bit, this betrayal has been revealed at the New South Wales Independent Commission Against Corruption. It has emerged that the former, now disgraced, Lord Mayor of Newcastle, Jeff McCloy, gave illegal cash donations to a number of state Liberal candidates in the lead-up to the 2011 New South Wales state election. Evidence before the ICAC made clear that it was Jeff McCloy—a multimillionaire property developer, who, under New South Wales Law, was very much a prohibited donor—gave large envelopes containing thousands of dollars of cash to Liberal candidates Andrew Cornwell and Tim Owen during the 2011 state election. This cash was undeclared. Both men won their seats and Jeff McCloy, who famously described himself as a 'walking ATM', followed in their footsteps to become the Lord Mayor of Newcastle. Their rapid rise to power was matched only by their spectacular fall from grace soon after. All three resigned midway into their first term of office.

But the web of deceit did not stop there. ICAC hearings revealed that Jeff McCloy also gave cash to the current member the Swansea, Garry Edwards, who has subsequently stood aside from the Liberal Party but has refused to resign. He joins a long list of former Liberal government MPs who now sit on the crossbenches. The member for Port Stephens, Craig Baumann, has also stood aside from the Liberal Party after revelations that he failed to report donations from property developers back in 2007 and his admissions that he directed a sham invoice be issued from his company Valley Homes to one of his donors. It was revealed that Mr Cornwell received a second prohibited donation from another property developer, Hilton Grugeon. The details of this donation are shrouded in the contrasting stories of Mr Cornwell and Mr Grugeon about how the money came to pass between them. However, there is no denial that thousands of dollars passed hands.

These are but a few of the shocking details that have emerged through the inquiry by ICAC, with a final report and findings to be delivered early next year. The dishonourable actions of these men have left the city of Newcastle and our region in a state of representative disarray. Having gone months without an elected representative or voice in the New South Wales parliament and no Lord Mayor of Newcastle, Novocastrians are facing three by-elections in the coming weeks, the first two of which are to be held this weekend.

The by-elections will come at a significant financial cost to the state, but the social cost to the Newcastle community is even greater. The betrayal of trust, along with the untold damage to Newcastle's reputation, will take years to heal and repair. The people of Newcastle have every right to feel angry, hurt and betrayed. It is not just the deceit that hurts; it is the arrogance that was displayed throughout the inquiry and beyond that adds salt to the wounds.

The utter lack of remorse is truly astonishing and was again on display at a party to celebrate Mr McCloy's birthday earlier this month. When presented with a cake in the shape of a large brown paper bag overflowing with $100 bills, a photo of him rubbing his hands together with the look of glee and delight was posted on a Facebook page of the party's venue that he himself owns.

Corruption undermines democracy and governments. It erodes public confidence, leaving communities with little faith that governments are, indeed, acting in their best interests. Constituents are left dismayed that those they elected to represent them in parliament have not acted with the utmost integrity, respect and diligence. Regrettably, the Liberal Party have taken a cowardly route of not running candidates in the upcoming by-elections, denying the people of Newcastle an opportunity to judge them at the polls. The Liberals call it atonement, but the people of Newcastle are not fools. They know it is a cop-out—a further betrayal of democracy. Rather than face the public in person or at the polling booths, the Liberal Party have deserted Newcastle.