The chairman of the ACT Tourism Advisory Board, Charles Wright, was the director of a company that went into liquidation the month before his appointment, according to publicly available company records.
The Chief Minister, Rosemary Follett, was asked in the Legislative Assembly by Gary Humphries (Lib) if it was true that Mr Wright was a director Canberra Publishing and Printing and Canberra Mail and Print Pty Ltd which went into liquidation owing the ACT Government hundreds of thousands of dollars and had those companies not paid group tax.
Mr Humphries quoted a statement made by Ms Follett on Wednesday that she had appointed Mr Wright to the tourism board because of his “”excellent reputation as a businessman”.
Ms Follett replied that she would take the first part of the question on notice but that she was generally aware of difficult conditions faced by ACT businesses in the recession, including that of Lou Westende (a Liberal MLA).
On Wednesday in Question Time the Opposition asked questions about Mr Wright’s naming in the report of the WA Inc Royal Commission. The Leader of the Opposition, Kate Carnell, asked whether Ms Follett was aware that Mr Wright had been named as “”a bagman” in passing $80,000 to Barbara Brush, former secretary to former Western Australian Premier Brian Burke. The position as chairman carries a $12,480 a year stipend.
Mr Humphries also asked yesterday whether the two companies had not paid group tax for their employees, nor accumulated long-service and recreation payments. He asked; “”Does the Government believe that a person who has run two companies into the ground owing hundreds of thousands of dollars is a fit and proper person to advise the Government on the business or tourism?”
Ms Follett replied that Mr Wright was doing an excellent job, as the tourism figures showed. With him in the chair there had been a new spirit of co-operation between the Government and industry and between the ACT and national bodies.
A search of the Australian Securities Commission public record yesterday shows that Mr Wright is a director of Canberra Mail and Print Pty Limited (in liquidation). He was a director from September 28, 1992 and was a director from an unspecified date until December 14, 1989. The other director is his wife, Cheryl.
A report by the liquidator to the Commissioner for Taxation in May said all realisable assets were secured by a charge to the State Bank. The company had other unsecured debts of $158,800 and debts to the Tax Office of $176,960 in group tax and $75,852 in penalties.
The liquidator said the reason the company failed was the downturn in the economy causing lower turnover and cashflow problems; increased competition; and the failure to secure major government contracts. The liquidator recommended “”further inquiry into the solvency and conduct of the business”.
Mr Wright said yesterday, “”As far as I’m concerned, these matters are finalised. The only creditor is the bank and I’m dealing with that.” He did not know what was on the companies-office record.
“”It is up to the liquidator and receiver to deal with these things,” he said. “”. . . All employees were satisfied as far as I’m aware.” Ms Follett said the “”slur on Mr Wright is to the detriment of the operation of this Assembly and to Tourism in the territory.”
Mr Wright said the reason the companies failed was that his wife and co-director, Cheryl Wright, had been off work for a year since a back operation and could not attend to the business and she had done before.
On the Royal Commission issue, Mr Wright said yesterday, “”The commission came up with no adverse finding in my case. It is the public knowledge that I fully co-operated with the commission. I am extremely annoyed with the gutless tactics of certain politicians who want to damage my reputation for a few cheap political points. Should they make statements outside the Assembly I will see them in court.”
Ms Carnell said in the Assembly on Wednesday that Mr Wright had carried $80,000 to Mrs Brush through his account when she had not worked for it. It was an illicit purpose and under the dictionary definition that made him a bagman. Mr Wright said yesterday, “”The Premier sent it through; I assumed it was all okay.”
At his cross-examination at the Royal Commission, Mr Wright revealed that he had been asked by Mr Burke in May or June 1987 to employ Mrs Brush because she did not have a job and would be unlikely to get one in Western Australia.
Mr Wright: “”I said, “I don’t mind, but I can’t afford to pay her’. He said not to worry about that, “I’ll arrange for payment.”
The $25,000 was to be for past services for which Mrs Brush had not been paid. Asked what arrangement was reached for its payment, Mr Wright said: “”That he would send be over a cheque and then I woudl simply bank it in my account, business account, and then write her out a cheque and send it to her.”
Lawyer: “”Why was payment made through your office?” Mr Wright: “”Well, he asked me and I saw nothing illegal about it, as long as it went through my books.”
Mr Wright said at the commission that it had been up to Mr Burke to determine what work Mrs Brush had done to earn the $25,000 up to June, 1987 and for $55,000 between then and the end of September 1987.
Mr Wright said that from his end, Mrs Brush’s work after June 1987 to the end of the year for the $55,000 was phone-call updates on fund-raising activities for the 1987 every three weeks. He did not know what she did at the Western Australian end.
Lawyer: “”What other work did she do to your knowledge?” Mr Wright: “”Nothing.” He told the commission that many fund-raisers had earned up to $100,000 a year.
The Tourism Advisory Board was set up in 1990 by the then Minister, Graig Duby. None of the positions on it had bever been advertised. The position of chairman carries a stipend of $12,480 a year.
Mr Wright is also on the council of the Australian War Memorial. Under a Remuneration Tribunal determination council members get paid $6624 a year.