The Morrison Government has given permission for oil and gas exploration in NSW coastal waters by a company set up as a tax minimisation ploy

Those Liberal-Nationals MPs and senators preparing to return to Canberra late next month appear determined to annoy NSW voters - especially those who live in coastal communities.

Having wrecked the Murray-Darling freshwater river system that runs through four states, they have now turned their eyes towards the coastal commercial and recreational fishing grounds of New South Wales.

This is how it is playing out........

Asset Energy Pty Ltd holds an 85 per cent interest in Petroleum Exploration Permit PEP11, an offshore petroleum exploration lease covering 4,649 square kilometres in Commonwealth waters off the coast of New South Wales.

Asset Energy is a wholly owned subsidiary of the Melbourne-based (formerly Perth-based) mining company MEC Resources Ltd’s investee company Advent Energy Ltd.

Bounty Oil and Gas NL is the junior joint venture partner in PEP11 holding a 15 per cent interest, 

Newcastle Herald, 9 January 2019

In March 2018 the National Offshore Petroleum Safety and Environment Management Authority (“NOPSEMA”) gave approval for a survey which acquired high resolution 2D seismic data over the Baleen prospect, approximately 30km southeast of Newcastle, which evaluated (amongst other things) shallow geohazard indications including shallow gas accumulations that can affect future potential gas drilling operations.

NOPSEMA falls within the portfolio of Australian Minister for Resources and Northern Australia & Nationals Senator for Queensland, Matt Canavan.

That particular survey has been completed and on New Year's Eve 2018 MEC Resources informed the Australian Stock Exchange that it now intends to do 3D seismic mapping in the vicinity of the potential test drill site at the earliest opportunity.

Underwater seismic testing involves continuous seismic airgun blasts approximately every 2-3 seconds for 24 hours continuously, for days or weeks at a time. That is, such testing creates compressed air streams or focused sonic waves - in simple language, loud booms - towards the ocean floor in order to gauge the depth, location and structure of the oil or gas resources. The sounds of which can travel many thousands of square kilometres and which are known to have a negative effect on marine ecosystems.

Previous to this, on 15 May 2018 the NSW Parliament had called on the federal government to suspend Asset Energy’s permit to conduct seismic testing off the coast of Newcastle, with the NSW Minister for Resources and Energy & Liberal Party Member of the Legislative Council Don Harwin expressing a lack of confidence in Australia’s current offshore mining regulations.

The Morrison Coalition Government in Canberra appears to be ignoring NSW Government  and community concerns. Being more concerned itself with offering tax free investment opportunities to the market.¹

It is worth noting that any significant Advent Energy/Asset Energy drilling rig (left) mishap has the potential for an uncontrolled release of untreated oil into coastal waters.

It is reportedly intended that one or more exploration drilling rigs should be in place sometime in 2020.

MEC Resources (formerly MEC Strategic Ltd) is a registered corporation which only been in existence for the last thirteen years and for the last three years there has been a bitter rift between the board and certain shareholders involving repeated calls for removal of the entire board, with the last call for a spill occurring in November 2018. The company was also involved in a dispute with a former managing director, as well litigation involving a $295,000 loan.

One of the shareholder bones of contention appears to be the cost of exploration in PEP11. On 31 October 2018 MEC Resources informed the stock exchange that a cost reduction plan remains in place to ensure all costs are reduced wherever possible.

Questions raised about the rigour of offshore mining regulations covering PEP11 and an oil & gas exploration company determined to cut costs. What could possibly go wrong? 

Concerned readers can sign Stop Seismic Testing Newcastle's change.org petition to Minister Canavan and NOPSEMA here.

Footnotes

1. www.mecresources.com.au, Tax Advanatges, retrieved 10 January 2018:

MEC is a registered Pooled Development Fund (PDF). PDF shareholders pay no capital gains tax on the sale of their PDF shares. Investors who receive dividends will also be exempt from income tax on dividends.

This can be particularly attractive to both traders and investors, since any profits derived from trades or investments are tax-free or low tax. The Pooled Development Fund Programme was established by the Federal Government to develop the market for patient venture capital for growing small and medium enterprises and to provide a concessional tax regime to encourage such investments. Any capital losses on the sale of PDF’s are not deductable.

To encourage investors, the government offers tax benefits to both the PDF and its shareholders as follows:

capital gains made by PDF shareholders are not taxable,

shareholders can elect to treat dividends paid by a PDF as tax free,......

PDF’s tend to invest in a portfolio of growing companies, thereby potentially reducing investors’ risk through diversification. Investee companies have the potential to become listed companies in their own right, which has the possibility of providing investors with attractive returns.

This is not a complete list of the taxation issues surrounding Pooled Development Funds. For further information please contact AusIndustry.

See  Pooled Development FundsAct 1992 as amended up to September 2018.

Tourism numbers in 2017 and 2018 on the NSW North Coast according to Tourism Research Australia

Pippi Beach, Yamba, australiaswims.com.au

According to Tourism Research Australia in 2017 a total of 263,000 international tourists visited six of the seven local government areas in NSW Northern Rivers region, along with 6,145,000 visitors (including day trippers) from elsewhere in New South Wales and interstate.

Northern Rivers Local Government Tourism Profiles 2017:

Ballina (A)

Byron (A)

Clarence Valley (A)

Lismore (C)

Richmond Valley (A)

Tweed (A)

Kyogle – no data
Note: Data is based on a four year average from 2014 to 2017.

The total tourism spend in the Northern Rivers region in 2014 to 2017 was est. $1.7 billion.

In the year ending September 2018 there was a total of 354,000 international tourists visiting the entire NSW North Coast - from just above Newcastle to the NSW-Qld border and taking in Hamilton Island.

These international tourists spent a total of $246 million with an average spend per person of $696.

According to media reports there were also 5,569,000 domestic visitors to the entire North Coast region in the same period.

An est 145,000 of all tourists were backpackers, who stayed a combined total of 1.48 million nights across the entire NSW North Coast in 2018.

Yet another reason why the Warringah electorate should forcibly retire Tony Abbott at the 2019 federal election

It is an open secret that sacked former prime minister and Liberal MP for Warringah Tony Abbott would not be averse to taking over leadership of the Liberal Party again if it finds itself on the Opposition benches after the May 2019 federal election.

However, it is well to remember that his judgement is flawed and his influence, if it exists at all, is rarely positive.

Take his interaction with Ukraine.......

RT.com, 22 March 2016:

Former Australian Prime Minister Tony Abbott has joined the list of ex-politicians invited by President Petro Poroshenko to advise him on how to rule Ukraine as a member of the so-called ‘international advisory council'.

Abbott unexpectedly popped up in the Ukrainian capital on Monday.

Comprised mostly of foreigners, the Kiev-based council was officially established last December. Previously called the International Advisory Council on Reforms, it aims to “facilitate the implementation of reforms in Ukraine on the basis of the best international experience.”

While still in office, the ex-PM had the third-lowest career-low approval rating of 24%, according to a February 2015 Newspoll. After losing Liberal leadership challenge back home last September and becoming vacant for political endeavors, Abbott was quickly invited to visit Ukraine.

Abbott and Poroshenko certainly have one thing in common – their dislike of Russian President Vladimir Putin. The former Australian leader said he would “shirtfront” the Russian head of state on the sidelines of 2014 G20 summit over the MH17 tragedy.

According to Poroshenko, Abbott was one of the most popular foreign politicians in Ukraine back in 2014. Abbott even joked about it saying that the “shirt-front must have translated well.” However, Abbott’s threat never materialized and Putin ended up cuddling a koala at the conference.

ABC News, 23 March 2016:

Former prime minister Tony Abbott has stepped up his support for Ukraine, joining a meeting of international figures headed by the country's president, Petro Poroshenko.

Mr Abbott has travelled to Kiev as part of a Ukrainian-led "international advisory council", which includes the former prime ministers of Slovakia and Lithuania.

"It is an honour to be in Kiev, Ukraine as a member of President Poroshenko's International Advisory Council," Mr Abbott said in a Facebook post.

"Also great to see the development of Kiev since I was last here 30 years ago."

The aim of the council is to "help build a strong and prosperous Ukraine", according to a statement on the Ukrainian President's website.

"Each of you were an author of economic or democratic miracle in your countries. You are true friends of Ukraine," the statement said.

"That's why I would like to unite our efforts in order to achieve the results and bring positive things to Ukraine.

"I am sure that this Council will help us outlive the period of dramatic events and Ukraine will become stronger."

The following years......

Times of Israel, 14 October 2017:

An activist against fascism who sued a Ukrainian municipality for naming a street for a Nazi SS officer has come under a campaign of intimidation, he said.

Mikhail Voroniak, a Red Army veteran, in summer sued the western municipality of Kalush near Lviv for deciding to name a street for Dmytro Paliiv, a commander of the 14th Waffen Grenadier Division of the SS, also known as the 1st Galician.

Voroniak told the Russian news site Primechaniya that he has come under a “aggressive pressures and threats of murder” since he sued. A local court last month dismissed his motion against the honor to Paliiv but Voroniak appealed to the Lviv Administrative Court of Appeals, which was scheduled to review the appeal last week.....

The Guardian, 2 March 2018:

Neo-Nazi groups involved in the fighting in Ukraine are actively seeking to recruit British far-right activists, a leading anti-fascist watchdog has warned.

At least two Britons are thought to have travelled to the war-torn eastern European country in recent months after encouragement by people linked to the Azov battalion, a notorious Ukrainian fascist militia, according to Hope Not Hate.

The warning comes only four days after the outgoing head of UK counter-terrorism policing, Mark Rowley, revealed that four far-right terror plots had been foiled in 2017 and extreme right groups were seeking to build international networks.

According to Hope Not Hate, a group named the Misanthropic Division, which is linked to the Azov battalion, is working with representatives of UK-based far-right groups, including the proscribed terror organisation National Action and a London-based Polish ultra-nationalist group, to recruit activists to travel to Ukraine.

Reuters, 20 March 2018:

As Ukraine’s struggle against Russia and its proxies continues, Kiev must also contend with a growing problem behind the front lines: far-right vigilantes who are willing to use intimidation and even violence to advance their agendas, and who often do so with the tacit approval of law enforcement agencies….

A January 28 demonstration, in Kiev, by 600 members of the so-called “National Militia,” a newly-formed ultranationalist group that vows “to use force to establish order,” illustrates this threat. While the group’s Kiev launch was peaceful, National Militia members in balaclavas stormed a city council meeting in the central Ukrainian town of Cherkasy the following day, skirmishing with deputies and forcing them to pass a new budget. 

Many of the National Militia's members come from the Azov movement, one of the 30-odd privately-funded “volunteer battalions” that, in the early days of the war, helped the regular army to defend Ukrainian territory against Russia's separatist proxies. 

Although Azov uses Nazi-era symbolism and recruits neo-Nazis into its ranks, a recent article in Foreign Affairs downplayed any risks the group might pose, pointing out that, like other volunteer militias, Azov has been “reined in” through its integration into Ukraine’s armed forces. While it’s true that private militias no longer rule the battlefront, it’s the home front that Kiev needs to worry about now.

When Russian President Vladimir Putin’s seizure of Crimea four years ago first exposed the decrepit condition of Ukraine’s armed forces, right-wing militias such as Azov and Right Sector stepped into the breach, fending off the Russian-backed separatists while Ukraine’s regular military regrouped. Though, as a result, many Ukrainians continue to regard the militias with gratitude and admiration, the more extreme among these groups promote an intolerant and illiberal ideology that will endanger Ukraine in the long term. Since the Crimean crisis, the militias have been formally integrated into Ukraine’s armed forces, but some have resisted full integration: Azov, for example, runs its own children’s training camp, and the careers section instructs recruits who wish to transfer to Azov from a regular military unit.

A set of postage stamps named "Master Sergeants of SS Galician Rifle Division" was printed for the 75th anniversary of the division which took place in April 2018.

#Ukraine post office celebrates Waffen SS nazis.pic.twitter.com/p0HkS2dSZn

— Alex Bukovsky (@BungeeWedgie) January 5, 2019

Tweets of the Week

Michael Murray, general manager of Cotton Australia

Mr Murray said the decision 18 months ago to drain 2,000 gigalitres of water from the Menindee Lakes was in hindsight “probably a poor decision”.

You fucking think so? #auspol

— Des Devlin (@desdevlin38) January 10, 2019

Quote of the Week

"So therein lies what’s like your classic Catch-22 situation where we’re at a -- it puts us in such a tough spot. If Sessions won’t un-recuse and Mueller won’t clear the president, we’re the only ones, which is really the danger. That’s why I keep -- and thank you for saying it by the way -- I mean, we have to keep all these seats. We have to keep the majority. If we do not keep the majority, all of this goes away." [Republican Rep. Devin Nunes of California on the need for the Republican Party to protect Donald Trump from the DOJ-FBI Russia investigation, quoted in The Intellectualist, 9 August 2018] 

Response To Organised White Supremacist Racism 101: compare the pair

On Saturday 5 January 2019 a predominately male, motley band of openly racist people held a rally at St. Kilda Beach in Victoria, during which they expressed their xenophobia and hatred.

The organisers appeared to be members of Australian white supremacist/facist/neo-Nazi/anti-immigration groups.

Including The Lads Society, Antipodean Resistance, The True Blue Crew, Soldiers of Odin and the Proud Boys, Whose combined ranks allegedly hold individuals who have convictions for violence, inciting serious contempt of Muslims, stalking, trafficking, assault, aggravated burglary, arson, affray, riotous behaviour and/or breaching intervention orders, according to media reports.

Nazi symbols featured on clothing worn by some members of these groups, Nazi salutes were frequently given during the rally and anti-Semitic as well as racist taunts were thrown about.

Although one of the rally organisers tries to deny his group's links to Nazi ideology 
and racism, the fact of the matter is that as late as December 2017 the founder of The Lads Society was castigating members for forgetting his game plan is to emulate Hitler by creating a political party with mass appeal, with the words:

"Seriously, just to wrap it up, too, just to wrap it up, the last fucking thing I’ll say is, do you really think that, if Adolf Hitler rose from the grave, if his spirit descended and stood beside you, put his hand on your shoulder, and he surveyed your jackboots with your red laces, and your fucking swastika tattoos, and your abrasive, fuck-the-world attitude, your little syndicate-separatist cult, do you really think he’d be proud of you? Do you really think he would say you’re a true national-socialist, well done? Do you think the man who said all great movements are popular movements and one must adjust himself to the times would be proud of you, would believe in you? Get a fucking clue!" 

There was a second diverse group of people who formed a sing-a-long & community picnic at St. Kilda Beach on the same day, in support of the ethnic and religious minorities that the first group were vilifying.

What has been reported as hundreds of police, including mounted police in riot gear as well as police dog handlers, attended St. Kilda Beach to make sure no violence occurred.

Victorian Police arrested three people who may have been at the beach for the racist rally - one for breaching bail conditions, one for a drug charge and another for possessing a dangerous article.

Independent senator from Queensland and well-known political ratbag, Fraser Anning, flew down to support the racist rally - flying business class and using chauffeured Comcar/s at taxpayers expense.

This was Australian Prime Minister and Liberal MP for Cook Scott Morrison's response to that Saturday at St. Kilda Beach:

This was the Leader of the Opposition and Labor MP for Maribyrnong Bill Shorten's response to that day: 

Now an observant reader may notice that there is something vaguely familiar about Morrison's tweet - a rather uncomfortable similarity to US President Donald Trump's infamous response to the Charlottesville Unite the Right rally, in which he attempted to assert a false equivalence between the white supremacists/neo-Nazis and those protesting against Unite the Right.

This did not go unnoticed in the USA where one political commentator pounced on Morrison's use of the plural "ugly racial protests":

This is the PM of Australia “both siding” it after a Nazi rally.

He is, obviously, a world-class idiot and appeaser. https://t.co/zJ6ryYOyHk

— Keith Olbermann (@KeithOlbermann) January 6, 2019

Then, like Trump, when Morrsion realised that public opinion was running against his false equivalence he tried to retrieve the situation with a statement sent to mainstream media on 7 January - and just like Trump he couldn't quite refrain from hinting that that community picnic was also extremism at work.

"I support entirely the views expressed yesterday by Acting PM Michael McCormack condemning Senator Anning for attending the racist rally in St Kilda and associating himself with extreme and offensive racist views that have no place in our society. He is a repeat offender on these issues. Australians are not anti migrant nor racist. Genuine concerns held by fair-minded Australians about immigration levels, border protection or law and order should not be used as a cover or be hijacked to push hateful and ugly racist agendas. As I did yesterday, I’ll always be prepared to call out extremism in all its forms." [my yellow highlighting]

It seems that when comparing the responses of Morrison and Shorten, Morrison in echoing his hero Trump comes off a very poor second best.

BACKGROUND

The main speaker at the St. Kilda Beach racist rally has a long history of espousing neo-Nazi ideology.

This comment was posted by Cottrell n 2013 expressing the view that a portrait of Hitler should be in every classroom and every school and that his book issued to schoolchildren annually:

And again in 2014:

After Cottrell and the United Patriots Front failed to launch the Fortitude Australia political party in 2016, there appears to be no political party directly associated with the founder of The Lads Society and the alt-right's plan to infiltrate the National Party of Australia is reported to have been unsuccessful to date.

Nevertheless, there are a number of registered political parties that are anti-Islam and anti-immigration which may attract racist, fascist and/or neo-Nazi voters. For example Pauline Hanson's One Nation, Australia First Party (NSW) Incorporated, Rise Up Australia  and Love Australia or Leave. Then there are the deregisterd parties which apparently continue to have a presence on digital platforms, such as the Australian Protectionist Party which was deregistered in 2015.

What did National Party federal ministers know about allegations of water theft & fraud and when did they know it?

Before unlawfully entering federal politics in 2004, Nationals MP for New England Barnaby Joyce was an accountant in St. George, Queensland just 119 km up the Barwon Highway from the extensive Norman cotton farming complex.

As a senator for Queensland he was Shadow Minister for Regional Development, Infrastructure and Water from 25.3.2010 to 14.9.2010 and Shadow Minister for Regional Development, Local Government and Water from 14.9.2010 to 18.9.2013.

He became a Cabinet Minister in the Abbott Coalition Government and Deputy Prime Minister of Australia in the Turnbull Coalition Government.

From 21.9.2015 to 27.10.2017 and then from  6.12.2017 to 20.12.2017 he was also the federal Minister for Agriculture and Water Resources.

Lawfully elected to the Australian Parliament for the first time in the 2017 New England by-election, thereafter he has sat as a National Party backbencher.

Given what we now know about Joyce’s attitude to control of water resources and his favouring of the needs of irrigators over those of dryland farmers and the environment the question must be asked – what did he know about this alleged $20 million fraud and when did he know it?

The same question also needs to be asked concerning current Minister for Agriculture and Water Resources & Nationals MP for Maranoa David Littleproud’s knowledge of this matter.

ABC News, 9 January 2018:

Two senior figures in Queensland cotton conglomerate Norman Farming have been arrested over an alleged $20 million fraud involving federal funds earmarked for Murray-Darling water savings.

Norman Farming CEO John Norman, 43, and his chief financial officer Steve Evans, 53, surrendered themselves at the Brisbane watch house Tuesday morning with their lawyers at their sides.

The men appeared in the Brisbane Magistrates Court Tuesday afternoon and were granted bail.

Police are alleging the rural fraud operation involved the director of the company submitting fraudulent claims, including falsified invoices related to six water-efficiency projects on the southern border property near Goondiwindi, known as Healthy Headwater projects.

Mr Evans will face charges in relation to four of those projects.

Police said the sophisticated fraud spanned seven years.

It has taken the rural arm of the major and organised crime squad more than a year to conduct what Detective Inspector Mick Dowie called, "a very protracted, very complex investigation".

Inspector Dowie said they had to trawl through thousands of documents and call in forensics accountants because of the sheer scale of the activities.

"There has obviously been a significant amount of documentation that's had to be analysed, and the offences particularly relate to the modification of invoices from contractors or service providers to the farming community," he said.

"We'll allege the company contracted harvesters or machinery operators to prepare for farming.

"And [we'll allege] those invoices were modified to show it was actually for earthworks related to the improvement of water efficiency, modified to suit the needs of the claim, and, we will allege, purely fabricated claims for use of machinery to fulfil the needs of the claims."

Norman Farming, a large cotton operation near Goondiwindi in Queensland's southern border region, was raided last October as part of a major criminal investigation, after a long covert operation.

At that time, the ABC's Lateline program reported the agricultural conglomerate was on the market for more than $100 million.

It also reported local farmers' concerns the Healthy Headwaters scheme had failed because there was never any checking of invoices by department officials.

According to Lateline, the Federal Government was made aware of allegations Norman Farming was diverting floodwaters in late 2016.

But the $154 million Healthy Headwaters budget was being administered by Queensland's Department of Natural Resources.

Inspector Dowie said in the department's defence it did not have any power of compulsion like police.

"So they can't force people to hand over documentation like we can, so they can compare original against what is produced," he said…..

BACKGROUND

Excerpt from SA Murray Darling Basin Royal Commission Exhibit

The Guardian, 9 April 2018:

Fraud charges are expected to be laid against one of Queensland’s biggest cotton irrigators, John Norman, within a matter of weeks.

If the trial of the owner-operator of Norman Farming, and former cotton farmer of the year goes ahead, it is likely to draw attention to the links between the irrigator’s family and that of the federal minister for agriculture and water resources, David Littleproud.

If the charges are laid, they will also throw the spotlight on the Queensland government’s failure in administering a key plank of the $13bn Murray-Darling basin plan, how it withheld critical information about the alleged crimes, and how it raises queries as to whether it lied about its own investigation.

For the past 18 months, an expanding team of undercover detectives, cybercrime experts and forensic accountants have been investigating Norman’s business on the Queensland/New South Wales border, an irrigated cotton aggregate stretching 45km north from the McIntyre river.

The investigation has focused on whether Norman Farming misused upwards of $25m in Murray-Darling basin infrastructure funds that were supposed to make the irrigator more efficient and deliver water back to the ailing river system downstream.

The plan for the basin is funded by the commonwealth and administered by state governments. But allegations that the $150m Healthy Headwaters Water Use Efficiency projects in Queensland, part of the MDB plan, lacked any genuinely independent checks on projects, means it may have been left open to corruption.

“It’s been a loosey-goosey slush fund helping irrigators get richer,” according to Chris Lamey, a dry-land farmer who’s seeking compensation from Norman, his neighbour. “It’s achieved the opposite of what was intended. There’s a lot of water not getting into NSW now and it’s backed up in dams next door to me.”

Queensland’s covert police investigation into Norman Farming went public in October 2017, when dozens of major crime squad detectives holding multiple subpoenas fanned out from Goondiwindi in early-morning high-speed convoys, heading across the floodplain to the irrigator’s properties and several of its contractors in and around the border river town.

The first person police met at Norman’s main Kalanga property, according to a source close to the investigation, was a teenage office worker who, when asked where the financial records were kept, explained they had been cleared out only days before by backpackers hired by her boss through a local publican. She took police to a locked shipping container where they had been moved.....

The Sydney Morning Herald, 17 July 2017:

Deputy Prime Minister Barnaby Joyce has stoked the controversy over claims of water theft in NSW aired by the ABC, dismissing the report as a ploy to strip more water off rural communities.

The comments have prompted the South Australian government to call for his removal from the post of federal water minister.

Mr Joyce told a gathering in a pub on Wednesday evening in the northern Victorian town of Shepparton, that it was important the Nationals had taken control of the Murray Darling Basin Plan.

"[We've got] $13 billion invested in it," Mr Joyce said, referring to the plan, according to a recording by the ABC. "We've taken water and put it back into agriculture [ministry] so we can look after you and make sure we don't have the greenies running the show, basically sending you out the back door."

Mr Joyce took aim at the Four Corners investigation broadcast this week that identified apparent rorting by some irrigators of billions of litres in the Barwon-Darling region of northern NSW.

The program stirred national concern and prompted NSW water minister Niall Blair on Wednesday to appoint a former head of the National Water Commission Ken Matthews to conduct an independent probe of the claims.

Mr Joyce downplayed the impact of the alleged water theft at a media conference in Canberra on Wednesday - likening it cattle rustling - before dismissing the claims further at the Shepparton gathering......