NSW Independent Commission Against Corruption (ICAC) OPERATION SPICER witness list for week commencing 25 August 2014 - cheat sheet (updated)

NSW ICAC OPERATION SPICER witness list for week commencing 25 August 2014

Monday 25 August 2014

Ann Wills - director at Wills Communications, former staffer for then Minister for Defence Personnel Greg Combet, former staffer for then NSW Treasurer & Minister for the Hunter Michael Costa, did work for Buildev and took part in the Stop Jodi's Trucks pamphlet campaign

David Sharpe - former co-owner and executive at BuildDev property developer

Tuesday 26 August 2014

John Hart - chairman of the North Sydney Forum, a fund-raising entity attached to the Liberal Party federal electoral conference in Australian Treasurer Hockey's seat of North Sydney and, CEO of Restaurant and Catering Australia, the national lobby group for the hospitality industry Removed from witness list for second week in a row

David Sharpe - former co-owner and executive at BuildDev property developer

Warwick Watkins – former CEO of NSW Land and Property Management Authority and current director of consultancy business WW & Associates Pty Ltd Removed from witness list this week

Wednesday 27 August 2014

Darren Williams - development manager at the Buildev Group and a sponsor of the Sydney-based Liberal Party associated entity The Millennium Forum in 2008

Ross Cadell - NSW Nationals regional co-ordinator, director at R & S Cadell Pty Ltd, manages the trading arm of family businesses including Tiny Tutus Pty Ltd, Tutu Central and P1 Race Engineering  Removed from witness list this week

Thursday 28 August 2014

Darren Williams - development manager at the Buildev Group and a sponsor of the Sydney-based Liberal Party associated entity The Millennium Forum in 2008

The following removed from this  week's witness list:

Eric Roozendaal – former NSW Labor MLC for and NSW Treasurer, suspended from the Labor Party in 2012 during an ICAC investigation into an inducement he accepted, resigned from Parliament in 2013, now working for Chinese development company
Ian McNamara - chief of staff to Opposition Leader John Robertson, stood aside while Operation Spicer continues

Kristina Keneally - former Labor MP for Heffron and former NSW Premier

Craig Baumann – NSW Liberal MP for Port Stephens

Friday 29 August 2014

Darren Williams - development manager at the Buildev Group and a sponsor of the Sydney-based Liberal Party associated entity The Millennium Forum in 2008
David Simmons - former Federal Labor MP for Calare, current director of David Simmons Corporate Communications which lists the Buildev Group as a client
Nathan Tinkler - part-owner of Buildev Pty Limited, former Patinack Farm horse stud owner and mining magnate
Tony Kelly - former NSW Labor MLC, former Minister for Lands and later Shadow Minister for Resources and Primary Production, he resigned from parliament after an ICAC investigation found that he had acted corruptly when Minister for Lands
Joe Tripodi - former NSW Labor MP for Fairfield and Minister for Ports and Waterways, in 2010 announced that he would not stand at the 2011 state election after corruption allegations made in ICAC Operation Cyrus hearings concerning his actions as minister
The following removed from this  week's witness list:

Garry Edwards - NSW Liberal MP for Swansea, moved to the cross bench after allegations during evidence given in an Operation Spicer hearing, that he had received an unlawful political donation 

Mark Regent – Buildev project manager on the Redbank North Richmond Joint Venture regional housing project

Bart Bassett - NSW Liberal MP for Londonderry

Coal seam gas industry's peak body APPEA refuses to reveal to Baird Government how much gas it estimates members will to be able to deliver to the domestic market in NSW

The NSW Parliament’s General Purpose Standing Committee No. 5 on 20 August 2014 has revealed that the Baird Government has no idea if supporting the coal seam gas industry in this state will actually produce affordable gas for the domestic wholesale/retail market.

In response to a question from the Hon. Rick Colless: I am sure you are aware of the Gladstone LNG terminal development. What impact will that development have on gas prices for New South Wales customers?

The NSW Minister for Resources and Energy Anthony Roberts answered in part:

The development of Gladstone will fundamentally change the east coast gas market. All the gas that we had previously available to us in New South Wales will now also be available for export.

It has been predicted that prices could as much triple once the export hub is fully operational…..

However, it is regrettable that the east coast gas market is also faced by issues of transparency. I am not aware of any public policymaker in Australia who has a detailed understanding of how much gas is being contracted to overseas customers. I am not aware of any public policymaker that knows whether the east coast gas market has the ability to deliver this without causing domestic shortfalls. I am not aware of any public policymaker that knows what penalty provisions apply should the exporters fail to deliver on their promises.

It concerns me greatly that the parties to these joint ventures may have overcommitted themselves believing domestic supply may have come on faster than it has and in greater quantities. Frankly, I find this a completely unacceptable situation. …..

as I have stated many times before, if you cannot measure you cannot manage. We cannot continue to tolerate a situation where Australian policymakers are being, quite frankly, left in the dark.

I understand that individual players in the industry may have commercial-in-confidence arrangements that they do not wish to be made public. However, I have repeatedly asked the Australian Petroleum Production and Exploration Association to work to aggregate this information so that it can be presented to government and the public. To my great disappointment, they have continually refused to do so. For this industry to gain a social licence in New South Wales it is vital for it to be transparent and to demonstrate how the development of this industry will benefit the State of New South Wales.

I feel this sentiment was captured well by the Premier of Western Australia, Colin Barnett, who, reflecting upon the gas situation on the east coast, stated:

It's a hard narrative to sell to the community, to a government that we are going to increase production of gas and we

are going to export and, in the meantime, domestic supplies might be diminished and domestic prices will go up.

Further to that he stated:

I am a politician and I am pretty good at selling a story but I would find that a tough one to sell.

Instead of enthusiastically supporting this industry it might be wise for the NSW Government to adopt a precautionary approach and assume that if the gas industry refuses to share information then the likely cause is that it is attempting to conceal the fact that it has been consistently telling untruths to governments ministers, departmental heads, members of parliament and local government councillors for many years.

Even Metgasco Limited, which tries to make much of its alleged plan to supply gas to local businesses in the Casino district of northern NSW, cannot disguise the fact that high on its wish list is enough money to finance the Lions Way Pipeline (LWP) which would send gas from any future wells up to the export hubs in Queensland and not into other parts of New South Wales:

Metgasco’s independently assessed 2P and 3P reserves well exceed local (Northern Rivers) gas demand.   As such it plans to supply gas to the eastern Australian and international gas market.   We have considered a number of different alternatives to supply its gas to these markets.   At present the most attractive and preferred option is to build a pipeline from the Casino / Kyogle area to tie in to the existing Roma –Brisbane pipeline in Queensland.

The majority of the work required for an environmental approval has been completed on both sides of the NSW / Queensland border.  The main outstanding work is the cultural heritage studies.  When project planning commenced, it was envisaged that this project would be assessed under the NSW Part 3A process.  Metgasco has agreed with the NSW government to transition the project to the new SSD process, with approval work already completed under Part 3A able to be used in SSD.

The pipeline is approximately 150 km in length and is expected to have diameter of 450mm.  It will be buried for its entire length, typically to depths of 900mm - 1,500mm.  It is estimated to cost in the order of $145 million....

Metgasco will recommence activity on the LWP when it decides to restart other field activities in the Clarence Moreton Basin.

The Sydney Morning Herald 28 September 2010:

NEW South Wales-based gas company Metgasco will assess an ambitious bid to partner with LNG Ltd and transport its coal seam gas more than 500 kilometres to Gladstone where LNG Ltd is planning to construct a liquefied natural gas plant for export.

The companies have signed a memorandum of understanding and will jointly fund a feasibility study into the plan. Under the plan, gas from Metgasco's Clarence Moreton Basin in northern NSW would be piped to Fisherman's Landing in Gladstone. The possibility of developing the LNG plant in the Port of Brisbane is also being considered.

Metgasco says if the project is judged to be economic the company could select a preferred LNG option next year. One of those options is a floating LNG platform. Metgasco says it has also signed a separate memorandum of understanding with Norwegian-listed FLEX LNG to evaluate building the project offshore. Metgasco's 2239 petajoules of proved, probable and possible gas reserves are located on the coast, unlike many other coal seam gas projects, making the option a consideration. It says its resources could supply an LNG plant up to 3 million tonnes a year of gas over 20 years.

Metgasco managing director David Johnson said the company was well advanced in developing the Lions Way gas pipeline, which will transport gas from northern NSW to south-east Queensland.

APN News & Media Limited (APN) still cost cutting in regional media division and now advancing the aims of the Newman Government

Sadly, regional newspapers in the APN News & Media Limited (APN) stable are still in the grip of a cost cutting regimen:

Resilient local trading conditions assisted by a strong real estate pillar helped Australian Regional Media (ARM) to deliver an improved performance.

Revenue was down 8% to $99.0 million, with EBITDA down 17% to $10.5 million.

Consistent with the broader publishing industry, ARM was negatively impacted by the weak agency market, with National revenues down 20%. ARM continues to focus on connecting with its audience and has grown its weekly aggregate audience by 8% to 1.4 million since the beginning of the year.

ARM continues to effectively manage its cost base and delivered year on year cost savings of $6 million in the half.

[HALF YEAR FINANCIAL REPORT AND APPENDIX 4D:APN News & Media Limited and controlled entities for the period ended 30 June 2014]

Rather worryingly, in Queensland APN became involved in furthering the political aims of an increasingly unpopular government of the day, by participating in a skewed 'community consultation' campaign conducted by the Newman Government, the Strong Choices questionnaire.

The Guardian 23 April 2014:

If you're not interested in raising taxes, reducing services or selling off assets, then the Queensland government doesn't want to hear from you.

Queensland treasurer Tim Nicholls has declared the government's “Strong Choices” campaign a success after the first week of operation, with more than 16,000 people making submissions through the Strong Choices website on how to reduce government debt.

Using an interactive questionnaire, people can suggest raising taxes, selling or leasing state assets, and reducing government services to reduce government debt.

In a statement on launching the site, which is part of a $6m campaign, Nicholls said the aim was to canvass Queenslanders’ views.

“This unprecedented level of community consultation and communication will enable every Queenslander who wants to take part to have the opportunity to provide detailed feedback on exactly what their priorities for the state are and to make their own choices as to how they would reduce the state’s debt,” he said.

However, the questionnaire does not allow you to submit your results if you choose not to raise taxes, cut services or sell off assets. If you complete each page but don't reduce the debt by the approved amount, you're unable to continue on to submit your results and the section on prioritising government spending.

Screenshot of the error message on the Strong Choices site.

This ensures any responses collated by the Queensland government will only include those who agree with the premise that the debt must be reduced to between $50bn and $55bn, skewing the results.....

Not content with manipulating the range of possible choices respondents had, the survey also apparently botched a graph:

The graph used on the site also emphasises the “unsustainable” range of debt, as it mixes two different axis increments – the “sustainable” section increases in lots of $10bn, whereas the unsustainable section increases in lots of $5bn, and has a greater distance between tick marks.

Brisbane-based software developer James Ottaway posted this new version of the graph to Twitter, demonstrating how it would look with a consistent axis:

Closely aligning newspaper mastheads with the Liberal-Nationals coalition is not a way to increase newspaper readership and boost profitability one would have thought and, is a move more akin to News Corp's business model which sees The Australian losing money hand-over-fist year in and year out since 2008.

With The Canberra Times revealing this week that; Operating losses at The Australian widened from $19.3 million to ­$27.1 million against a budgeted loss of $7.56 million, according to the last weekly internal operating accounts for 2012-13. Revenue tumbled from $135 million to $108 million, versus a budgeted $133 million.

Yet another Northern Rivers' council turns its back on coal seam gas miner Metgasco Limited

ABC News 20 August 2014:

Gas company Metgasco says it's shocked and disappointed by a north coast council move against the gas industry.

At last night's council meeting the Richmond Valley Council made clear its view on unconventional gas mining.

The motion was as follows -

"That the Richmond Valley Council believes that given its current understandings and existing knowledge base around the unconventional gas industry, the potential effects on the environment, the uncertainty surrounding fracking and the strongly expressed community views against the unconventional gas industry that it cannot support the development of the unconventional gas industry in this local government area at this time. Further to this, that Council affirms its strong opposition to fracking in any form."

The motion passed, five votes to two with the Mayor Ernie Bennett and Councillor Sullivan voting against it.

Echo NetDaily 20 August 2014:

The reversal in council’s previous position follows the June meeting when Cr Robert Mustow received unanimous support for council to review the policy.

Deputy mayor Sandra Humphrys accepted Gasfield Free declarations  from the community of  Codrington, following their celebration on the weekend after 93 per cent of Codrington voted to remain Gasfield Free.

Richmond Valley resident Eric van Beurden, who was at the meeting, told Echonetdaily it was heartening to see that council has listened to locals’ concerns and ‘taken a stand in support of the stated wishes of the vast majority of their constituents’.

‘Several speakers presented summary results from all community surveys in the shire at the meeting, showing that between 85 per cent and 93 per cent of Richmond Valley residents want to remain Gasfield Free,’ Dr van Beurden said.

‘Councillors at last night’s meeting spoke about changing their position from one of neutrality to one of opposition based on several things, including widespread community opposition and information now available on the risks of unconventional gas mining,’ he said.

Shorter Tony Abbott: Liberal Party fraud & corruption all Labor Party's fault

It is becoming harder and harder to tolerate the arrant folly on display when Prime Minister Tony Abbott and his ministers trot forth their justifications for unlawful behaviour, bad policy, foreign relations gaffes or garden variety political fibs. 

This assertion quoted in The Guardian on 18 August 2014 has to be the most brazen example so far of their blame Labor mantra:

In the wake of the resignation of two NSW Liberal MPs over corruption allegations, the prime minister has said the “problem” was the former Labor NSW government banning property developer donations in the first place…..

“Who exactly is a developer? That can sometimes be a difficult question. [They] also introduced legislation to limit the total amount of donations and political parties need to raise money,” he told 2GB on Monday morning…..

As with many of Abbott's utterances, this was a distortion of fact which a look at Hansard records quickly dispelled.

The NSW Legislative Assembly Hansard of 1 December 2009 gives a clear definition of property developer:

Meaning of "property developer"

The Bill defines a property developer to be:

(a) a corporation engaged in a business that regularly involves the making of relevant planning applications by all on behalf of the corporation in connection with the residential or commercial development of land, with the ultimate purpose of the sale or lease of the land for profit, or

(b) close associates of such a corporation.

Any activity engaged in by a Corporation for the dominant purpose of providing commercial premises at which the corporation or a related body corporate will carry on business is to be disregarded for the purpose of determining whether the corporation is a property developer.

A close associate of a corporation includes:

(a) directors and officers of the corporation and their spouses, and

(b) a related body corporate of the corporation (within the meaning of the Corporations Act 2001 of the Commonwealth),

and

(c) persons whose voting power in the corporation or a related body corporate is greater than 20% and their spouses.

That same day Hansard records the bill being passed in the Lower House and the current Coalition Premier of New South Wales (then Shadow Treasurer), along with the rest of the Opposition, supporting this election funding reform:

Mr MIKE BAIRD (Manly) [6.31 p.m.]: The Opposition does not oppose the Election Funding and Disclosures Amendment (Property Development Prohibition Bill) 2009 as we strongly support the need for comprehensive campaign finance reform. From day one the Leader of the Opposition said that transparency, honesty and accountability should be returned to government in this State…..

However, I acknowledge that both sides of politics have received donations from areas and industries that have caused concern within the community and potentially removes objective assessment of legislation or reforms. The community has the perception that when particular groups or individuals fund a party it is difficult

for politicians to make objective assessments. That perception problem must be addressed. The problem is across both sides of the political divide. I accept that there are many in this place who do not have a potential conflict; nevertheless, the perception remains and it is difficult to determine whether people are being influenced

by donations. In my inaugural speech 2½ years ago I noted that donations were at a corrosive level in this State and that significant donation limits, combined with stronger public funding, can ensure that electors are properly informed and have confidence in the integrity of the electoral process.....

That property developers appearing before ICAC are well aware of the fact that they are property developers within the meaning of relevant legislation is nowhere better illustrated than by former Newcastle mayor Jeff McCloy’s High Court writ which reportedly states:

‘‘Each of the first plaintiff (Cr McCloy) and third plaintiff (North Lakes Pty Ltd) is therefore a property developer within the meaning of section 96GB(1) of the Elections Funding, Expenditure and Disclosures Act.’’

By March 2014 NSW Independent Commission Against Corruption investigations Credo and Spicer were exposing the the degree to which politicians, political parties, lobby groups and individuals were flouting state election funding and donation disclosure laws.

 On 27 May 2014 NSW Premier Baird announced the formation of an expert committee which would investigate and recommend to government further reforms to NSW election funding laws.

A background paper produced by this committee gives an Overview of Australian Election Funding and Disclosure Regimes.

Excerpt:

New South Wales

In 2008, in-kind campaign contributions (including the provision of offices, computer equipment and vehicles to candidates for little or no payment) were capped at $1,000. In 2009, political donations from property developers were banned in response to public concerns about corruption and undue influence in the NSW planning system. This ban was later extended to prohibit donations from the tobacco, liquor and gambling industries.

In 2010, the Election Funding, Expenditure and Disclosures Act 1981 (NSW) (the NSW Act) was further amended to impose caps on the value of political donations to parties, groups, candidates, elected members and third-party campaigners. As a result of these reforms, the largest donation a single donor can make in a financial year is $5,000 to a political party or group, and $2,000 to a candidate, elected member or third-party campaigner (adjusted for increases in the CPI). The applicable NSW donations caps for the 2014-15 financial year are $5,700 for donations to parties and groups and $2,400 for donations to candidates, elected members and third-party campaigners.

The shift in New South Wales toward caps and bans on donations culminated in the O’Farrell Government’s 2012 amendments banning political donations from corporations and other entities. This ban was recently declared invalid by the High Court on the grounds that it impermissibly burdened the implied freedom of political communication under the Commonwealth Constitution. The result of the High Court’s decision is that section 96D of the NSW Act applies as it did before the 2012 amendments.

On the basis of this outline it would appear that the majority of witnesses giving evidence at Operation Spicer hearings are either in breach of state electoral funding and donation laws or have knowledge of these breaches and, fraud and corruption are systemic within the NSW political system.

A system which has been advantageous to Prime Minister Abbott through donations received from the Warringah Club and Warringah Forum. 

It would appear that Abbott's statement of 18 August this year is merely a reworking of an excuse he found successful in the past, when his political fund-raising arm was found to have breached electoral laws and one of his principal donors (a property developer) failed to make required disclosures.

Unfortunately for Tony Abbott the Australian electorate now has a better understanding of how political donations are solicited and his tired old 'ignorance of the law' excuse will no longer be tolerated by a great many voters.

Elite Energy's Triathlon Festival at Yamba NSW, 5-6 September 2014

Elite Energy website:

YAMBA is becoming NSW's own North Coast early season festival with a difference. This year an Olympic Distance Triathlon will be the main event, and the festival will become the first event in our 2014-2015 triseries season.

With stylish village charm, pristine beaches, national parks and award winning restaurants, Yamba is a unique holiday or lifestyle experience for the family. Explore the myriad of waterways, stroll the uncrowded beaches, go swimming, fishing or surfing but most of all discover Yamba's friendly hospitality all year round.

Yamba is situated at the mouth of the Clarence River in Northern NSW, the biggest river on the east coast of Australia. Yamba has a relaxed lifestyle with access to all services and is within easy reach of Ballina, Lismore and Grafton. Yamba is only 3 hours from Brisbane, 2 hours from the Gold Coast and only a 2 hour flight from Sydney.

Looking for accommodation? Check out our local partners here »

Download timetable as PDF

The Disgraced Former Young Liberals Club

Audio of The Disgraced Former Young Liberals Club (including anthem) click here.

* First Dog On The Moon's shop here.

Quote of the Week

This weekend Abbott will be on the Pollie Pedal, a familiar and comforting excursion. He gives the impression of a leader for whom the core task of governing and delivering has become very hard. [The Conversation 15 August 2014]