Tuesday 31 July 2018

A trio of Great Barrier Reef Foundation directors decline to appear before a senate committee inquiry


On 19 June 2018, the Senate referred the 2018-19 Budget measure Great Barrier Reef 2050 Partnership Program to the Environment and Communications References Committee for inquiry and report on 15 August 2018.

The Great Barrier Reef Foundation made a written submission on 2 July 2018.

Yesterday it sent one of it newest directors (who apparently joined the board in the second half of 2017) and its managing director to give evidence before the inquiry.

However, three directors are seeking to avoid attending this inquiry  - John M Schubert (Chair), Grant King and Paul Greenfield.

This unwillingness is likely to be less about scheduling problems and more about close associations with petroleum, gas, mining* and finance industries, the foundation's membership list as well as the identity of donors who gave over $1.4 million to the foundation in 2017.


Three directors of a Great Barrier Reef charity entrusted with almost half a billion dollars in public money have refused to give evidence to a Senate inquiry scrutinising the controversial deal, raising the prospect they will be forced to appear.

Confidential Senate committee documents seen by Fairfax Media show that despite being offered five dates at which to attend the inquiry, the directors of the Great Barrier Reef Foundation say they are unavailable for questioning, variously citing overseas travel commitments, medical appointments, board meetings and other unspecified engagements.

The inquiry was launched following the Turnbull government’s decision to grant the small, business-focused charity $443 million to help rescue the reef.  The foundation has previously said it would “fully co-operate” with the probe.

The contentious Great Barrier Reef Foundation grant is to be spent on projects such as water quality improvements.

The Senate committee had specifically requested their attendance. The trio comprises the organisation’s chair John Schubert and board members Grant King and Paul Greenfield. Mr King is president of the Business Council of Australia and Dr Greenfield chairs the foundation’s scientific committee.

The foundation has advised that managing director Anna Marsden and another director, John Gunn, will give evidence.

The grant was awarded without a tender process and the government’s own expert agencies were not invited to apply.

The foundation plans to use the grant to leverage additional funds from the private sector.….

Fairfax Media understands the committee will ask the directors to find suitable dates to give evidence and advise them that the committee has the power to summon witnesses. According to the Parliament website, Senate committees rarely need to exercise such powers as witnesses are “normally very willing to place their views and the information they possess before the Senate to assist in an understanding of issues”…..

details of the deal show the foundation will receive almost $45 million to cover administration costs incurred by disbursing the funds. Fairfax Media previously reported the foundation would receive an upfront payment of $22.5 million plus interest. The recently published grant agreement shows the interest will be capped at $22 million, and any additional interest will be spent on reef projects.

The agreement also shows many aspects of the deal will remain confidential, including the strategy used by the foundation to attract private sector funds.

Greens oceans spokesman Peter Whish-Wilson criticised the secrecy and questioned the influence businesses would exert over how the grant was spent.
“How much of it is going to be used to promote the companies and essentially greenwash some of these businesses that are key polluters?” he said.

Businesses involved in the foundation include heavy polluters such as AGL, Peabody Energy, Shell, Rio Tinto and Qantas.

In a statement, the department said it accepted that the foundation “does not wish information about who it might approach or the strategies it might employ in its fundraising to be made public”.

The administration costs were “ reasonable given the scale of the grant” and any entity, including a government agency, would need adequate funds for such purposes, it said.

The department said the attendance at Senate hearings "is a matter for the foundation".

* The Great Barrier Reef Foundation classes Rio Tinto's RTFM Wakmatha (a Post Panamax bulk carrier on the Weipa to Gladstone run) as the foundation's research vessel in its so-called mission to save the reef.

UPDATE

As of 7.35pm 31 July 2018 the transcript of yesterday's public hearing has not been published.

However, mainstream media is reporting that Ms. Marsden gave evidence that in April 2018 Prime Minister Malcolm Bligh Turnbull and Environment and Energy Minister Josh Frydenberg met privately with the Chair of the Great Barrier Reef Foundation, John Schubert.

At this meeting an unsolicited and unscrutinised offer of over $45 million as a lump sum grant was made to Schubert as chair of the foundation.

This private meeting goes a long way towards explaining Schubert's reluctance to be questioned during this Senate inquiry.

Three former bankers meeting to carve out a large chunk of taxpayer dollars, probably felt comfortable enough to speak freely on a number of subjects.

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