Senate debates

Wednesday, 21 November 2012

Matters of Public Interest

Carr, Senator Bob

1:12 pm

Photo of Concetta Fierravanti-WellsConcetta Fierravanti-Wells (NSW, Liberal Party, Shadow Minister for Ageing) Share this | | Hansard source

Today I would like to reflect on some exchanges in the New South Wales parliament which raise issues relating to Mr Carr's judgement in relation to Mr Obeid. The basic question is whether Mr Carr should have been aware of what Mr Obeid was up to but simply averted his eyes and looked the other way.

Clearly, Mr Obeid's actions over many years raised serious questions about his suitability for office and most especially about his being made a minister. Given matters before ICAC at the moment, I will not traverse those issues. I simply ask the question: does Mr Carr ever pause and reflect that, had he not promoted, protected and defended Mr Obeid, Australia would not now be in a position where its international reputation is at risk of being stained by the activities of his mates in the New South Wales right, or is the minister just a hand-washer in a remorse-free zone?

Before we look at some of these exchanges, I remind the Senate that Mr Obeid became a member of the Legislative Council on 12 September 1991. He remained an MLC until 10 May 2011. For almost 20 years as an upper house member he appears to have wielded an extraordinary level of power. In an article on 10 May 2011 entitled 'Obeid turns off the power and makes a quiet exit,' Sean Nicholls wrote:

The year after entering Parliament, he and a close friend, the former federal MP Graham Richardson, arranged for the late stockbroker Rene Rivkin to buy the Offset Alpine printing press from media mogul Kerry Packer. Mr Obeid's son was made a director.

The printing premises were destroyed by fire in 1993.

Mr Obeid had bad luck when it came to fires. In July 1983 fire destroyed the offices of his newspaper, El Telegraph, in Garners Avenue, Marrickville. Bad luck was to follow him to his newspaper's new premises in Marrickville Road, where, in 1992, there was another fire. Mr Obeid also had the misfortune of having two fires at his former home in Concord.

Just on Offset Alpine, as Kate McClymont reported on 31 October 2003, the fire at the plant turned out to be a stroke of very good luck for a group of high-profile investors. The plant was worth $4 million and the company had just taken out insurance for $53 million, with full replacement value of $42 million. But, as the article states, 'the only person to have whinged about missing out on the Offset Alpine' payout was 'ALP heavyweight Eddie Obeid', who had put the deal together.

The article states a number of matters, including that Mr Obeid was first offered Offset but could not come up with the $2 million for 25 per cent of the company; that Mr Obeid mentioned the deal to his friend Graham Richardson, who suggested his good friend, Rene Rivkin, might be interested; that Rivkin agreed to finance the deal; and that 'Mr Obeid was privately bitter over the matter and has complained to friends that he felt Rivkin ripped him off.' Interestingly, in an article in The Monthly in July 2010, Paul Barry writes: 'Intriguingly, the official police report revealed that an anonymous note had been sent to the insurance company’s fire investigator', pointing the finger at Mr Obeid—who, indeed, had had a problem with fires in the past. Mr Carr was Premier from 4 April—

Photo of George BrandisGeorge Brandis (Queensland, Liberal Party, Shadow Attorney-General) Share this | | Hansard source

From 4 April 1995.

Photo of Concetta Fierravanti-WellsConcetta Fierravanti-Wells (NSW, Liberal Party, Shadow Minister for Ageing) Share this | | Hansard source

Thank you, Senator Brandis. Mr Carr was Premier from 4 April 1995 until 3 August 2005. Mr Obeid was Minister for Fisheries and Minister for Mineral Resources from 8 April 1999 to 2 April 2003. His time as a minister was wholly within the time of the premiership of Mr Carr. Mr Carr should have remembered the old saying 'Where there is smoke there is fire'. In Mr Obeid's case, there was lots of smoke and many fires.

It did not take long into Mr Obeid's time as a minister for questions about his pecuniary interests to surface. On 9 September 1999, Mrs Chikarovski asked Premier Carr:

Has the Premier asked his Minister and Labor Party powerbroker Eddie Obeid to explain why he asserted yesterday that he held no shares in Hapgeti when the company’s own annual returns—prepared by Mr Obeid’s son—shows the Minister to be the sole registered shareholder?

… … …

Is Mr Obeid lying or is he just incompetent?

Premier Carr’s response was to attack Mrs Chikarovski, saying:

This whole matter concerns an argument about a tender generated by a dissatisfied representative of a company in the Sydney City Council area.

Then on 3 September 2002 allegations surfaced about Mr Obeid’s involvement in the Oasis Liverpool Development. Premier Carr was asked:

When did he first learn of allegations of attempted bribery by Minister for Mineral Resources, and Minister for Fisheries and what steps did the Premier take to satisfy himself of the Minister's innocence before the Premier said that he had full confidence in the Minister, describing the allegations as utterly false and reckless?

Premier Carr responded:

The Leader of the Opposition would be the only one trying to breathe life into ludicrous allegations.

Again, on 3 September 2002, Premier Carr was asked:

Why does the Premier continue to believe that the Minister for Mineral Resources, and Minister for Fisheries, Eddie Obeid, is honest, when documents show that he failed in the register of disclosures 1994-95 to declare that he continued as a director of Al Constantinidis' company, Jensay, and also as a director of Constantinidis' piggery company, Olympia Group?

Mr Carr’s response was simply to mock the Leader of the Opposition, brushing it aside and saying:

This matter was thrashed out in the upper House ages ago and was answered in the upper House ages ago.

Mr O'Farrell then pertinently took a point of order:

Before the Premier presumes to misrepresent members of the Opposition on pecuniary interest, let us just get an answer about the Minister for Mineral Resources, and Minister for Fisheries, Eddie Obeid, who is the only Minister to have bought his place on the front bench by bankrolling backbench members of the Labor Party. He paid his way into the Ministry, and the Premier ought to reveal to this House the questions he asked the Minister for Mineral Resources, and Minister for Fisheries, Eddie Obeid, about his disclosures, what the ministerial Code of Conduct obliges the Minister to tell the Premier, and why the Premier continues to help a man who tells lies to this Parliament time and time again.

Mr Carr’s answer totally ignored dealing with the allegations. In a subsequent answer to another opposition question that day, Mr Carr persisted that 'the allegations are inherently ludicrous'.

Having been a lawyer at the AGS and having had some experience with taxation issues pertaining to the famous piggery, I have some knowledge of Mr Constantinidis, his connections and his activities. Alarm bells should have been ringing. The issue was referred to the New South Wales Parliament Legislative Council Standing Committee on Parliamentary Privilege and Ethics, and the report pertaining to Mr Obeid’s colourful history makes for interesting reading. I would remind the Senate that the terms of reference of that inquiry refer to various responses Mr Obeid had given to questions about his pecuniary interests, such as:

Since I became minister I have had no active part in any professional practice or in any business.

That was a letter to the Premier—Hansard, 8 September 1999. In the Hansard of 29 August 2000:

My pecuniary interests of 1999 stand.

In the Hansard of 31 August 2000:

I have complied with the requirements of my pecuniary register every year.

In the Hansard of 5 September 2000:

My pecuniary interests are well in order.

Ha, ha! Hansard, 31 October 2000:

I have answered enough questions on my pecuniary interests. They are there for everyone to see. They comply with the requirements of the Constitution.

Hansard, 18 September 2002:

Anything I have to say about my pecuniary interests is well recorded. Any time that I feel it should be corrected, I have done so.

The inquiry showed that since 1991 Mr Obeid had made 154 errors in his pecuniary interest returns, of which 137 had been 'corrected', in the sense that Mr Obeid had disclosed an association but not the precise details of the nature of the interest or position to the Clerk, with 17 of the errors not being 'corrected' before Mr Obeid gave evidence on 16 October 2002.

And what was Mr Obeid's excuse? He blamed his accountants—notwithstanding that the information was readily available through ASIC records. Whilst the Labor dominated committee voted against parts of the chair's draft and found no wrongdoing against Mr Obeid, the evidence clearly suggested that he had something to hide. That, above all else, should have rung loud alarm bells for all concerned in New South Wales, including Mr Carr.

Then, on 19 November 2002, questions were raised about the Valhalla Stables lease. I remind the Senate that this is the matter which involved Mr Carr as the minister for the environment and approaches that Mr Obeid made in relation to a variation of the lease. Mr Brogden asked then Premier Carr:

In view of his previous answer, how does he explain a briefing note from Mr J. F. Whitehouse, Director of the National Parks and Wildlife Service, dated 3 March 1988 with respect to the Valhalla stables? It states in part:

The Minister requested the service review the request—

that is, the request from Eddie Obeid—

with a view to providing alternatively worded provisions that could meet the requirements of the lessee

Mr Carr, of course, did not address the specific allegations and simply said:

I, as Minister at the time, said that there was no departure whatsoever from the existing policy of the National Parks and Wildlife Service regarding these developments.

Not long after, on 23 October 2002, the Premier was again questioned about Mr Obeid’s pecuniary interest disclosure. I quote:

As Eddie Obeid's sworn evidence to a parliamentary investigation last week that he has had no business dealings since becoming a Minister has been contradicted by sworn evidence from Mr Karl Suleman, will the Premier sack the Minister for lying to Parliament?

Mr Carr's response was:

I believe the Minister answered those questions fully in the Legislative Council today.

Haven't we heard that one before, Senator Richardson?

Honourable senators interjecting

Sorry, Senator Ronaldson. That was a Freudian slip! Again, on 19 November 2002, the Premier was questioned on the lease matter. He was asked:

Can he explain why, after he met Eddie Obeid twice as Minister for the Environment during the caretaker period for the 1988 election campaign over changes he was seeking for his Valhalla Stables snow lease development, National Parks and Wildlife Service officers and Obeid's solicitors had opposite views about what he had promised?

Despite all of this, Mr Carr's response was, 'There were no opposite views' and he proceeded to change the subject. He was asked:

In light of the Premier's claims, what part has the fact that he was compromised by Eddie Obeid over his Valhalla Stables snowfield development while the Premier was Minister for the Environment played in his refusal to sack Mr Obeid—or does he have something else over you, Bob?

Again Mr Carr deflected by attacking on another unrelated matter. This is the crux of the problem for Mr Carr. Is this the reason why he has continuously turned the Nelson blind eye to Mr Obeid’s activities and that, despite myriad allegations, he still saw fit to appoint Mr Obeid a minister in April 1999? Interestingly, in the second reading debate on the Environmental Planning and Assessment Amendment (Ski Resort Areas) Bill, which dealt with changes to planning for ski resort areas, Minister Obeid did not see fit to disclose any conflict of interest, despite his involvement in the Valhalla Stables lease matter.

On 30 October 2003, the Premier was asked about business interests and ongoing scandals involving former ministers, including Mr Obeid:

… can the Premier guarantee that none of his former Ministers or Parliamentary Secretaries used their positions to set up businesses or jobs to fund their retirements?

Mr Carr's response was:

It is clear that there are no issues and there is no research over there. There ain’t anything happening that the Opposition can get its teeth into.

Indeed, he even boasted:

I have often said this is the period of best governance in the history of New South Wales.

As history has shown, Mr Carr, this was a hollow boast indeed. On 3 June 2004, questions were raised about Ms Janet Obeid and threat allegations:

Given allegations today by Eddie Obeid that his niece Janet Obeid is a "psychopath" and is pursuing a vendetta, can the Premier confirm that she has been in contact with his office to raise serious allegations about threats to her safety from the Obeid family? Has he referred this matter to the New South Wales Police for investigation?

Mr Carr completely ignored the question about somebody who rang his office for assistance. He was asked:

Does the Premier believe that Eddie Obeid is still fit to be a member of the Australian Labor Party?

The response was:

He is, and as far as I know there is no move to expel him.

These issues go to the very heart of Mr Obeid’s suitability to remain in parliament, let alone to be promoted to the ministry. (Time expired)