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Queensland July to December 1999

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Queensland July to December 1999 Political Chronicles 237 Queensland July to December 1999 JOHN WANNA Politics and Public Policy, Griffith University Gambling on Pulling Through Although the Beattie government was approaching mid-term, political events in the latter half of 1999 were anything but dull. The Labor government gradually began to establish its own direction and policy agenda but was simultaneously confronted with a series of difficulties and political scandals — embroiling ministers and backbenchers. Commencing the year as a majority government, Beattie ended the year sliding back into minority government with the added uncertainty of facing two by-elections in Labor seats. Although the government appeared confident, it was often spooked by events — some admittedly beyond their control but others certainly of their own making. Every political issue was perceived as a risk with the potential to bring down the government — and there were many constant reminders of the slenderness of their grip on power. While a potent mixture of gambling and sex scandals marred Labor's credibility, the oppositional parties fared little better, with the Nationals engaged in internal discord, the Liberals unable to impress, and the remnants of One Nation thrown to the four winds. Leadership speculation would continue to dog both Coalition parties with some members making their dissatisfaction apparent over the lack of effectiveness against the Labor government. The year overall would be remembered as a testing time for all in Queensland politics. Despite the occasional gaffe, overall support for the Labor government remained strong. Polls generally put Labor ahead of the combined Coalition and One Nation vote on a two-party preferred basis — but with the fragmentation of the vote at the 1998 election such figures were treated by all sides with caution. In September a leaked opinion poll showed that 58 per cent of voters were satisfied with the government's performance while 38 per cent were dissatisfied. The poll showed that even in its best seats the vote for One Nation had dropped to 10 per cent while in marginal electorates Labor was increasing in some seats (eg Springwood and Glasshouse) but losing others to the Coalition (eg Mt Ommaney). The personal approval for Premier Peter Beattie was 68 per cent compared to Rob Borbidge the Opposition leader who scored 40 per cent. By late 1999 Beattie had emerged as the most popular premier in the country. One important milestone to occur in July was the tenth anniversary of the tabling of the Fitzgerald Report into police corruption, illegal gaming and prostitution. A series of political speeches and media "specials" to mark the decade of reform provided various evaluations of the impact of the Fitzgerald inquiry (Courier-Mail, 3 July 1999). Most © Departments of History & Government, The University of Queensland & Blackwell Publishers 2000. 238 Political Chronicles reports praised the inquiry and subsequent reforms with suggestions that police corruption had now been all but rooted out. Some critics argued that while little reforms had been implemented, the government and the media had taken their eye off the "big picture". It was also apparent that relations between the Criminal Justice Commission and the Police Union remained at a low ebb (Wilkinson, Courier-Mail, 17 July 1999). The Fitzgerald anniversary was soon followed by the tenth anniversary of the election of the Goss government on 2 December. Special dinners were held among Labor circles and Goss's inner circle (who wore t-shirts with the words "we wore suits for Wayne Goss" — alluding to the quip once said of the Goss government that it was run by boys in suits). Press assessments spoke approvingly of the "winds of change" brought in by Goss, and the "revolution" in Queensland politics introduced by the Goss ministry. Arguing against the conventional wisdom, the opposition leader Rob Borbidge suggested that Goss had failed, had not consolidated his reforms and had been preoccupied with process. The 1999 Electoral Redistribution A lengthy electoral redistribution was conducted between late 1998 and mid 1999 by the three-member Queensland Redistribution Commission. This was the eighteenth redistribution since self-government but the first state-wide redistribution since the zonal system had been abolished and a fairer system of electoral boundaries introduced in 1991. The determination of the Redistribution Commission was gazetted on 7 July. In the redistribution the number of electorates remained the same (at 89) but a number of smaller seats were abolished, merged or renamed as boundaries shifted to keep pace with population movements (eg Kedron). New seats tended to be created in areas of high urban growth (eg Glasshouse was re-created). The main parties made submissions generally urging the commissioners to make minimal changes while equalising the number of electors in the 84 non-weighted seats. And mostly they were satisfied with the outcome of the determination. The ALP calculated that in net terms it had lost one seat on the new boundaries compared to the 1998 results. Importantly, around 40 per cent of the state seats remained in the marginal category – suggesting that for the foreseeable future the government of the day would never be able to take the electorate for granted and would continually have to earn support across a wide band of marginal seats. The Net-Bet Fiasco: Labor's Sticky Fingers and a Hiatus for Hamill The first major scandal to blight the Beattie government involved the Treasurer David Hamill and his decision to award an Internet gaming licence to the Gocorp consortium hoping to establish a Net-based casino gambling enterprise located on the Gold Coast. The Gocorp group included three "Labor mates" who were minor shareholders in a company that held a 20 per cent stake in Gocorp. The three Labor figures were Bill D'Arcy (Labor's Deputy Speaker), Don Livingstone (former Labor member for Ipswich West) and Ipswich Labor counsellor Paul Pisasale. All three stood to make windfall gains (or according to the Premier an "obscene" amount of profit) from the sale of their shares in the company structure (up to $1 million each). The decision to award the contract had a long gestation (starting under Joan Sheldon) but was eventually approved by the Labor Treasurer on advice from officials in his department (the Office of Gaming Regulation). When the Treasurer's decision attracted public Departments of History & Government, The University of Queensland & Blackwell Publishers 2000. Political Chronicles 239 scrutiny (first on 27 July) Hamill attempted to deflect criticism claiming he had done nothing wrong and followed due process. However, Independent Peter Wellington was perturbed that the government had awarded the license to extend gambling while holding a review and being ostensibly concerned with the negative social impacts of gambling. Hamill was initially insistent he would not stand down but agreed to stand aside on 1 August while an investigation by the Auditor-General was held into the matter. Parliament also debated a motion censuring the Treasurer (which was lost on party lines). Although expecting a brief inquiry Hamill eventually remained sidelined for almost three months. Bill D'Arcy also finally agreed to relinquish his position as deputy speaker on 8 August — a position to which he would not return and, indeed, by the new year he would no longer be sitting in parliament. Hoping to clear his friend (and repair his government's credibility) Beattie had apparently persuaded Hamill to stand aside on full salary to allow the Auditor-General Len Scanlan to investigate the matter. In the meantime the Opposition had lodged a formal complaint to the Criminal Justice Commission (CJC) questioning whether any official misconduct had taken place. They began exploratory investigations on 30 July (and decided to hold an independent inquiry — under Bob Gotterson QC — on 6 August). This now meant that two inquiries into the matter were active. Those conducting the inquiries agreed to coordinate their investigations, and deliver their verdicts simultaneously. Beattie also introduced retrospective legislation into parliament preventing politicians, their families or their staff from benefiting from Internet casino licences. Eventually, the Attorney-General and the CJC reported to parliament on 30 September clearing Hamill of any wrong-doing. He was reinstated as Treasurer in October and in resuming work adopted a low profile — until he could boast of the returns secured by the sale of the TAB. The significance of the Net-Bet affair was that it effectively ended the Beattie honeymoon and put the government on the back foot for the first time since taking office. It also damaged Hamill's reputation. The local media regarded his actions as "naïve or stupid" — a "Rhodes scholar without street cred". Colleagues in the ALP continued to question his political judgement — indeed, even the most favourable assessments from his own side considered that he was at best gullible and showed lapses of political judgement. While the Net-Bet Affair was in train, the government accomplished the privatisation of the TAB (for around $250 million) but in the process quite a few feathers were ruffled. Premier Beattie had managed to convince the ALP's state conference of the need to privatise the gambling authority (in the face of much grassroots opposition), but was then faced with the prospect of ALP-run investment companies (Labor Holdings Pty Ltd) attempting to buy shares in the float. If the ideological battle was lost, Labor was still prepared to benefit commercially from the sale of public assets. To counter perceptions of a conflict of interest (as some Labor figures were on the TAB board), Beattie initially ruled out any large corporation buying substantial portions of the TAB. Then with rumours aplenty that Labor was looking after its mates, he introduced legislation into Parliament prohibiting any political party (and in particular the ALP or any related holding company) from applying for shares in the privatised entity (much to the disgust of the ALP treasurers).
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