1995_10_october_powles

He couldn’t help himself. Is that a cop out, or is it in the nature of things? Adrian Powles, respectable lawyer of the respectable and distinguished Sydney law firm, Allen, Allen and Hemsley, was jailed in January for defrauding his clients of nearly a million dollars. He was also engaged in organising an investment plan for Nauru Government bodies which at one stage stood to lose $40 million.

This week, three men pleaded guilty in New York to their part in the Nauru scam which involved banks in Antigua, Singapore and Switzerland. Next week sees the publication of The Allens Affair, by Valerie Lawson, which traces Powles’s life from womb to jail.

On the public plane, the affair resulted in some questioning about the way law is practised in Australia. While looking at that, Lawson’s book engages in the deeper question that has engaged writers for millennia … what causes those deep flaws in human nature that cause such destruction to self, family and friends, bringing shame and ignominy when only a modicum of self-restraint and self-discipline would have resulted in respect and applause.
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1995_10_october_polldate

The Constitution and the Electoral Act provide the rules about election timing, but there are other practicalities such as school holidays. The Act says an election can only be held on a Saturday.

The writs for an election can be issued at any time the Governor-General accepts the Prime Minister’s advice to dissolve Parliament. It would take no more than a day. Malcolm Fraser in 1983 was made to wait a few hours.

Once the writs are issued, a minimum of 11 days must be given for candidates’ nominations to be received. A further minimum of 22 days must be allowed between nominations and the election day.
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1995_10_october_ojlindy

The erosion of my faith in the Anglo-Saxon system of justice began on February 2, 1986, and the O.J. verdict has merely confirmed its loss. On that day, people searching for the body of an English tourist found a baby’s matinee jacket at Ayers Rock. It was identified by Lindy Chamberlain as that of her daughter, Azaria.

I had been part of the media ruck that had covered the case. I hadn’t covered the trial itself, but I covered the Federal and High Court appeals and reported and commented on the many sideshows.

During the Federal Court appeal I became convinced of her guilt. Ian Barker, QC, for the prosecution re-plaited the rope of circumstantial evidence, much of it scientific. His argument was so powerful, I can remember much of it now without going back to the files.
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1995_10_october_leader28oct

The Governor-General Bill Hayden made statements this week about the position of the president in a republic. They follow comments about euthanasia, same-sex marriages and his change of mind and heart on democratic socialism.

The question of what sort of things a Governor-General should say is a tricky one. Like the job itself, it is governed by convention, not rules. Mr Hayden can say what he likes. There are no rules to which he is answerable. Rather, if he is seen by the Prime Minister to go over the top, the Prime Minister can ask the Queen to remove him. Nothing Mr Hayden has said or done to date would warrant that. None the less, at the very least, he has dipped his toe into public debate about matters which are clearly matters which are also being debated in the party political arena. And he is doing it in a way that would annoy many people on the Labor side. It could be argued that he has in fact joined a party political debate by directly attacking the model for a republic proposed as part of the platform of one of the major political parties which is opposed by the other major party.
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1995_10_october_leader27oct

Prime Minister Paul Keating resorted to typical hyperbole when he referred to “”donkeys” in the superannuation industry who invest only in blue chip shares. He called on them to invest less in the top 50 stocks and more in stocks lower down the table, especially of new companies in hi-tech areas.

Mr Keating has a point, but only up to a point. Superannuation is primarily about providing secure retirement incomes. Any spin off in extra savings and investment in new industries is incidental to this. Of course, it does not take a donkey to realise that investment in green chips is more risky than blue-chip investment and fund trustees will be held accountable for losses. That said, it has often been the case in Australia’s stock market history that in any decade the performance of the top 100 companies is worst than the performance of the next 100 down. Some stocks are clearly unsuitable for super. However, it should not be beyond the wit of the funds and the Government to devise a scheme whereby risk can be spread sufficiently to enable more investment into smaller companies which would often turn out more profitable than the blue chips … the high flyers would more than compensate for the crashers.
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1995_10_october_leader26oct

The industrial dispute at Canberra’s two main universities is solved … for the time being. All along the universities said they could not give more than 2 per cent. It was a case of could not, not would not. The university did not have the money in its budget and the budget was locked in legislative cement by the Federal Government. All along the unions said they would not settle without substantially more. Now, after weeks of disruptive bans, a arrangement has been arrived at to save the face of both sides after such a destructive battle. The university will pay 7.6 per cent. The difference of 5.6 per cent is to come in federal government supplementation.

What if the Federal Government does not give any supplementation? Who knows. Of course, the universities should never have been put into the situation. They were required to engage the union in enterprise bargaining. But the universities are not an enterprise. They have no profits from which to absorb wage increases, or prices with which to pass them on.
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1995_10_october_leader25oct

The ACT should resist any bullying by the United States over the proposed heroin trial. The Federal, Victorian and NSW Governments should also ignore any US threat to Tasmania’s $80 million poppy industry which supplies the US legal drug market, though to date it has only been suggested as a possibility.

For a very long time the United States has taken the prohibition, criminal-justice approach to drugs. It has demonstrably failed. It failed with respect to alcohol between 1918 and 1933. Prohibition resulted in organised crime and corruption while consumption abounded. It has failed with respect to narcotics. It has caused organised crime and corruption, and addiction continues.

The US has pushed for international treaties not only to get other countries to cooperate in preventing drugs from entering the US, but also to get other countries to follow the prohibition route by calling for harsh jail terms. Its elected politicians and appointed officials have engaged in an inexplicable crusade for a policy that does not work.
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1995_10_october_leader24oct

On a personal level, Bill Hayden, has not received any of the parliamentary pension to which he would have otherwise been entitled since going to Yarralumla. Also his salary was set at some $20,000 a year lower than it would have been if set on the basis of his predecessor because at the time the Government was appealing to all sections of the community to exercise wage restraint. However, on an official level, the annual report of his office, somewhat exaggerated by some press reports, indicates that the running of Government House is costing a figure that would make many Australians uncomfortable. The stark figures are the $517,000 spent on the trip to Gallipoli and the $12 million it cost last year to maintain Government House. The $12 million includes renovations and extra security, but even without them, the office costs 50 per cent more than in Sir Ninian Stephen’s day.

Most other areas of government have come under heavy cuts and cost pressures. The figures presented in the annual report will make many Australians wonder at the functions of the office and whether it requires this level of funding. Whether the head of state is seen as a representative of the monarch or as a symbol of the nation either now or in an impending republic, Australians still want value for money. They will ask: are the number of functions and number of staff all necessary?

1995_10_october_leader21oct

You can be either prince of print or queen of the screen, but you cannot be both, Paul Keating once boasted about Labor’s media policy. It was a policy to encourage diversity, prevent foreign ownership, encourage competition and to prevent cross-ownership of the Australian media. Well, there was further mud in the eye for Labor this week as the Prince of Print, Rupert Murdoch, swallowed Australis and became the dominant figure in the provision of pay television in Australia … a veritable Queen of the Screen. Australis delivers by MDS (line of sight land transmission) and satellite. Combined with Foxtel’s cable delivery it will give virtually saturation coverage in the major cities. (The smaller towns and rural areas have never counted in the Government’s or the corporate world’s view of pay TV.) As a result of the deal, Mr Murdoch is now the Prince of Print, Queen of Screen and king of Australian media policy.

As this happened, the powerless Minister for Communications, Michael Lee, Pilate-like washed the Government’s hands of insisting on any of the four key elements to a wholesome media policy. Mr Lee said that it was up to the regulatory authorities to determine if the merger … read takeover … would go ahead, as if media were equivalent to margarine production. This was less than a month after the same Minister impotently sat on his hands while the ABC’s pay television venture was cut out of the action by Mr Murdoch’s Foxtel and Kerry Packer’s Nine Network. It would not be proper for him to intervene in the level playing field to support the Government’s instrumentality, he argued.
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1995_10_october_leader20oct

The strike at the Australian National University and the University of Canberra is showing that enterprise bargaining is not a very satisfactory method of industrial relations at non-profit, public institutions. It is a fall-out from government policies that have attempted to impose private-sector methods far too widely in the public sector. Efficiency drives in, and privatisation of, commercial elements of the public sector have been laudable … banks, airlines, telecommunications and so on. But to apply the methods of industry universally through the public sector, is ludicrous. Enterprise bargaining belongs in enterprises. A university is not an enterprise, despite the wishes of purist economic rationalists. Performance pay, user pays and productivity-based pay are also follies when applied to educational institutions. Some functions in society are better done in the public sector and applying the public-sector ethos of service and equity. Typically these functions require very large outlays and yield returns only in the very long term or yield returns that are not measurable in dollars. Or they are policy functions.

The universities have been put in an invidious position. They have virtually no control over their income and therefore nothing to bargain with. They are not like an enterprise which can increase prices. Enterprises can make a balanced commercial decision about the risk of passing on the costs of pay rises on to consumers, a university cannot.
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