Political Chronicles 279
Queensland July to December, 2008
PAUL D. WILLIAMS School of Humanities, Griffith University
Overview The second half of 2008 underscored the end of Premier Anna Bligh's honeymoon with the Queensland electorate. Media and public outrage over an alleged lack of ministerial and bureaucratic integrity, continuing policy crises in water, health and education, and the spectre of a successfully merged Liberal-National Party all haunted government strategists powerless to halt Labor's public opinion decline. As the global financial crisis bit into Queensland's economy, it seemed all a "small target" LNP Opposition had to do was wait. July The period opened explosively when District Court Judge Hugh Boning dismissed charges against paedophile Dennis Ferguson on the grounds his notoriety would prevent a fair trial. Botting's judgment would be overturned in August after Attorney- General Kerry Shine ordered the Director of Prosecutions to appeal, but not before igniting fears of the allegedly errant surgeon Dr Jayant Patel — the so-called "Dr Death" of Bundaberg Hospital — escaping justice on similar grounds (see previous Chronicles). In the interim, the now released Ferguson was forced to relocate several 280 Political Chronicles times around South East Queensland, under expensive police protection, to evade angry local mobs. But the real soap opera belonged to the Liberal and National parties. On the eve of their merger, billionaire businessman Clive Palmer raised questions of political influence when he allegedly donated $100,000 to the cash-strapped Coalition (Courier Mail, 2 July 2008). Despite declaring an early intention to become inaugural Liberal- National Party (LNP) president, incumbent Liberal President Mal Brough soon dropped out, leaving just a Liberal Gary Spence and Nationals' President Bruce McIver. But legal advice suggested any amalgamation agreement may be void should four of the Liberals' six state divisions, and the Federal Council, fail to approve the merger. Matters were hardly helped when Federal President Alan Stockdale insisted a Liberal be the first LNP President lest the new party merely resemble a Nationals' takeover. The now sceptical Brough, with the support of Stockdale, then called an emergency State Council meeting to postpone amalgamation. But when four of the Liberals' eight MPs (Mark McArdle, Steve Dickson, Jann Stuckey and Tim Nicholls) threatened to resign should the merger be scuttled, amalgamation was voted to proceed, and was soon supported by federal Opposition Leader Brendan Nelson and Nationals leader Warren Truss. It was a far cry from Prime Minister John Howard's previous reservations. But, just two days before the joint party convention, the Liberals' forty-seven- member State Council voted, 26-21, to postpone the merger, ostensibly on advice that Stockdale was preparing an alternative to amalgamation. Pro-merger Liberals again warned they would walk should the merger be dropped. When Supreme Court Justice Glen Martin overturned the State Council's resolution, the convention of 26-27 July proceeded, with the two parties, after separately endorsing amalgamation, symbolically coming together with the lifting of a room partition. McIver was elected inaugural President, with Nationals leader Lawrence Springborg leader and McArdle the new deputy. Brough vowed never to join the new party, and Liberal Sue Boyce refused to call herself an LNP senator. Premier Anna Bligh wrested back the spotlight by way of strong leadership, insisting Canberra lift its share of health funding from 35 per cent to 50 per cent (or $2.1 billion), and in halting — amid local residents' complaints — a new Mater Hospital car park in Bligh's own South Brisbane electorate (Courier Mail, 5-6 July; 9 July 2008). Bligh on 6 July also announced Penny Wensley as Queensland's twenty- fifth Governor to replace Quentin Bryce — Prime Minister Kevin Rudd's choice for Governor-General. Despite murmurs over Wensley's long absence from Queensland, and her $79,000 pay rise to $190,000 per annum, the new Governor took her Oath on 29 July (Courier Mail, 7 July 2008). But the government faced more serious issues. Firstly, there was anger at a $30,441 bill for public servants' attendance at Bligh's public addresses — one the Premier defended as civil service networking. Secondly, Scott Flavell, former Director-General of Employment and Training under Peter Beattie, admitted to the Crime and Misconduct Commission (CMC) he had emailed "sensitive" information to a Brisbane businessman — with whom Flavell would later establish a commercial enterprise — concerning potential government grants. By year's end, the CMC would recommend ex-ministers and bureaucrats be banned from lobbying former colleagues for at least two years. But Bligh faced the toughest criticism when she failed to reveal in the Members' Pecuniary Interests Register a gratis three week holiday at the luxury Sydney home of former federal Labor minister, Ros Kelly. As this $60,000 "gift" far Political Chronicles 281
exceeded the $500 threshold for declaration, and as Kelly was also a director of the leviathan developer Theiss, few were surprised at the clamour. But Bligh's reputation suffered only further when she denied the need to consult the state's Integrity Commissioner. Despite her backflipping days later and declaring the holiday, the Members' Ethics and Parliamentary Privileges Committee in November still rebuked the Premier for her oversight. Health soon returned to the headlines as Dr Patel returned from Los Angeles on 21 July. Patel, on fourteen charges including manslaughter, immediately faced a Brisbane court, and was bailed on $20,000 surety (Courier Mail, 19-20 July 2008). Bligh then proudly announced a coal port at Shoalwater Harbour in central Queensland, but only attracted environmentalists' criticism for being "stuck in the past". August Emboldened by his merger success, the Opposition Leader distributed "I love the Borg" tee shirts and pledged to axe all eleven parliamentary secretaries (increased from six under Beattie in 2006) in a $3 million saving (Courier Mail, 1 August 2008). But the first post-merger Galaxy opinion poll offered little optimism, pegging the new LNP two points lower than the old Coalition to just 40 per cent primary vote, compared to Labor's 44 per cent. But this did not prevent rumours of defeated federal Coalition MPs lining up for LNP candidacy. Campbell Newman hardly enhanced the unity cause when he insisted his Brisbane team were Liberal — and not LNP — councillors, nor did a leaked email referring to former Liberal director Geoff Greene's allegedly large separation payout. Former Liberal leader Bruce Flegg could perhaps have cared less, given his replacement as Treasury spokesperson by factional rival Tim Nicholls. Bligh, too, appeared reform-minded when the government legislated for judge-only trials (at defendants' request), and for majority jury verdicts. On 20 August, Bligh released the government's long-awaited response to the Solomon review of FOI laws (see previous chronicle), with a pledge to support in full 116 of Solomon's 141 recommendations, partially support another 23, and reject only two
Beattie, meanwhile, admitted he enjoyed his new Los Angeles role and told his critics to "get stuffed" (Courier Mail, 30-31 August, 2008). September The Premier began the month on a note of fiscal prudence. On the heels of damaging stories of bureaucratic excess — aggressive news agendas largely run by The Courier Mail against Queensland Rail's so-called "Gravy Train" in April and its $30,000 "Riverfire" celebrations in August — Bligh urged restraint among CEOs of all government-owned corporations. But in November the issue would arise again when it was revealed the Port of Brisbane had planned, but later cancelled, a $40,000 Christmas party. The government was further embarrassed at ministerial expenses growing between 2007 and 2008 by 6.9 per cent to $32.2 million per annum, a rise Bligh defended as "prudent", and in December when it was reported a $30 per month bottled water allowance for ministerial limousines had been introduced, along with memberships to Qantas Club's Chairman's Lounge being extended to ministers' partners (Courier Mail 27 August 2008; 22 December 2008). Education policy soon resembled health failures when figures showed Queensland children trailed all states across Year Seven performance benchmarks: where 90 per cent of Victorian twelve-year-olds met minimum standards, only 77 per cent of the Queensland cohort did likewise (Courier Mail, 5 September 2008). Higher proportions of Indigenous students were blamed, with Welford imploring all parents to do more for their children. The Premier then marked the first anniversary of her accession to the Premiership with the announcement of Towards Q2, Bligh's attempt to place her own stamp on Government as an answer to Beattie's Smart State. But the plan, encompassing the five themes of Strong, Green, Smart, Healthy and Fair, was soon criticised as one plagiarised from New South Wales Premier Morris Iemma's office of which Mike Kaiser was Chief of Staff. The government also came under fire for curtailing journalistic freedom when it closed a legal loop-hole that had allowed journalists to avoid revealing sources on the grounds of self-incrimination when appearing before the CMC's Star Chamber. The government then assuaged the fourth estate with "shield laws" to protect journalistic integrity in other courts of law. Climate Change Minister Andrew McNamara livened up a grim month when it was revealed he had performed a "mini-strip" at his 2007 office party. In late September Shadow Attorney-General Stuart Copeland, whose seat of Cunningham had been abolished in the recent redistribution, announced his retirement from politics. Around the same time, Bligh was criticised for asking school principals to chair community Q2 forums. What Bligh defended as gauging public opinion, the Opposition labelled politicisation. But the public service had its own agenda when it called a short strike on 30 September to demand a 5.1 per cent pay rise, somewhat higher than the government's 3.25 per cent offer. The Department of Public Works then came under scrutiny when Acting Minister Judy Spence refused, on commercial- in-confidence grounds, to reveal the winner of a $1.4 million contract to supply renewable energy to government buildings. But Bligh, who had staked her reputation on FOI reform, over-ruled Spence and revealed ERM Power and AGL Hydro as the successful tenderers (Courier Mail, 30 September 2008). But Bligh was less candid when asked about the number of Labor "spin doctors" employed by her government. Where Beattie in 2007 had identified 528 practitioners costing around $40 million annually, Bligh hedged her response and replied that every civil servant was involved in public relations. It was a hard message to sell in the face of Labor's declining popularity in public opinion polls. At month's end, a Galaxy poll Political Chronicles 283 found Labor's primary vote had slipped five points since the 2006 election to 42 per cent, with the new LNP up three points to 41 per cent. Labor enjoyed a 52 to 48 per cent lead after preferences. But Bligh remained preferred premier by 50 per cent of respondents, with Springborg managing just 35 per cent support. Fifty-four per cent thought Queensland was headed in the "right direction" (down 17 points since September 2007), with 35 per cent (up 13 points) feeling the state was moving in the "wrong direction" (Courier Mail, 30 September 2008). But, with the US financial services firm Lehman Brothers collapsing mid-month, thus signalling the beginning of the Global Financial Crisis, it was clear darker storm clouds were gathering. October On the eve of daylight saving's introduction in southern states, the new LNP attempted to head off a potential split by feeding its MPs "cheat sheets" — written by Springborg Chief of Staff Paul Turner — to defuse the issue in the news media (Courier Mail, 1 October 2008). The quest for conservative unity was essential: early October also saw the LNP receive its status as the Queensland division of the Federal Liberal party. But Bligh's attempts to paint LNP leader Springborg as lazy for not working on weekends backfired when she was pilloried for a personal attack. More anger emerged when Local Government Minister Warren Pitt proposed to extend for six months, without public consultation, the term of all 526 Queensland local government councillors to allow municipalities to come to grips with their newly amalgamated budget responsibilities. Few were prepared for Indooroopilly MP Ronan Lee's bombshell when he announced on 5 October his defection from Labor to become the Greens' first Queensland MP. Even Bligh learnt of developments from an internet news site. While some Labor MPs turned their vitriol on Lee, Bligh turned to luke-warm populism. On 9 October, the Premier contradicted Federal Treasurer Wayne Swan and called on banks to pass on interest rate cuts in full, and later introduced new laws forcing future toll road operators to reduce tolls should alternate routes be blocked. The Premier also ramped up her environmental credentials in the wake of Lee's defection. Bligh had already banned for twenty years new shale oil mines, established new social impact study requirements for mining activities, abandoned plans to export coal through the Port of Mackay, rezoned the Narangba industrial estate, conducted a "reef summit" and, perhaps most controversially, widened the "green space" in Moreton Bay from 0.5 to 16 per cent (Courier Mail, 20 October 2008). But few were prepared when Bligh abandoned the contentious Northbank development that would have seen four thirty- storey buildings extend fifty metres over the Brisbane River. With 93 per cent of the 2,275 public submissions opposed to the project, Bligh could rightly say she was "listening to the people" (Courier Mail, 20 October 2008). Old ghosts returned to haunt when former Beattie Minister Merri Rose — released from prison in 2007 after being convicted of attempted blackmail (see previous Chronicles) — appeared on ABC TV's Australian Story. She alleged that her career had been terminated by AWU chief Bill Ludwig when, as Racing Minister, she had refused Ludwig's request to be appointed to the Queensland Racing Ltd board. Beattie and Ludwig denied Rose's version of events. Speaker Mike Reynolds then created more controversy when he labelled Police Commissioner Bob Atkinson "culturally incompetent" for proceeding with a Palm Island police bravery ceremony at the time of alleged riot ringleader Lex Wotten's sentencing (see previous Chronicles). The last week of October saw Parliament sit in Cairns — only the third sitting outside Brisbane since 1860 but poor attendances saw MPs outnumber the public gallery. Despite this, 284 Political Chronicles
both Bligh and Springborg defended the $600,000 travel bill. Bligh for the first time also hinted at an early election as the $2.4 billion Western Corridor Recycled Water pipeline neared completion. But, with Queensland now lumbered with a $1.56 billion debt ($560 million more than forecast), and with the global financial crisis already stripping 25 per cent from state revenue, any early poll would be a risky venture indeed (Courier Mail, 31 October; 8-9 November 2008). November It seemed like a free ride for the LNP when the Ludwig affair snowballed, with accusations that the AWU chief misused a proxy vote to extend his term as a director of Queensland Racing. Treasurer and Minister responsible for Racing, Andrew Fraser, initially refused to refer the matter to the CMC, only to backflip after a Supreme Court judge suggested Ludwig may have breached the Criminal Code (Courier Mail, 10 November 2008). But the LNP did not have it all its own way when two MPs, Ray Stevens (Robina) and Ray Hopper (Darling Downs), engaged in a "verbal stoush" in a Cairns restaurant over their share of a bill. What was soon dubbed "fettagate" saw the restaurant owner chase the two MPs down the street in pursuit of an unpaid $28. Sports Minister Judy Spence faced her own embarrassment when unable to explain — despite issuing a press release in March claiming the Gold Coast Indy car race was booked until 2013 — how she failed to secure the event after an expensive ministerial sojourn to the US. Ethics then promised to form the core of any early election when — after Integrity Commissioner Gary Crooke warned against ministerial fundraising dinners costing more than market value — Springborg pledged to empower the Integrity Commissioner to oversee corporate access to ministers at fundraising events. The worst storm to hit Brisbane in twenty years should have given Bligh an opportunity for statesmanship when she visited devastated suburbs such as The Gap. But the Premier appeared wooden as she offered up to $765 in cash, with some opining the Premier looked more like a sober insurance assessor than a sympathetic leader. Days later, Bligh for the first time showed a lack of enthusiasm for the contentious piping of recycled water into southeast Queensland dams, insisting she would now take the Water Commission's advice. It was an escape clause the Premier used on 25 November when Bligh — despite the projects' $3 billion investment to date — backflipped and cancelled water recycling and, to the relief of Sunshine Coast residents, postponed for four years the equally controversial Traveston Dam to allow for "environmental mitigation". Bligh's populism again saw her claim she was merely "listening to the people", but Labor's sensitivity to hostile public opinion was obvious: a Water Commission poll now found only 55 per cent of Queenslanders supported water recycling, down from 75 per cent in January (Courier Mail, 26 November 2008). This mirrored Labor's own declining fortunes as a Galaxy poll showed Labor's primary support was now tied with the LNP's on 41 per cent, or 51 per cent in Labor's favour after preferences (Courier Mail, 1 December 2008). Labor would now be forced to rely on Green electoral support. But a later Newspoll conversely suggested Bligh would easily be returned at any early election. The October-December aggregate survey indicated Labor's vote had soared to 45 per cent (up 7 points from 38 per cent since September), or 57 per cent after preferences. Similarly, the LNP's primary vote was at just 37 per cent (down 4 points from 41 per cent since September), or 43 per cent after preferences (http://www.newspoll.com.au/cgi- in/polling/display_polldata.pl). Political Chronicles 285
December Water continued to dominate headlines negatively when the $1.2 billion Tugun desalination plant's opening, scheduled for 1 December, was postponed. Fluoride also began flowing into southeast Queensland water supplies amid significant pressure group opposition. Despite protestation at the Springborg's "small target" strategy — including from within his own party — the LNP offered a populist tempter to South East voters with one daily free rail trip to Brisbane-Gold Coast commuters. This contrasted favourably with perceptions of Labor political correctness gone mad when it was reported classroom teachers were advised against marking students' work in red ink. But Springborg's credibility was also tested when he vowed to keep the state budget in surplus without revealing how. The Opposition Leader only invited more ridicule when he spoke of "front-ending" public service jobs that the LNP considered "de-necessary" (Courier Mail 4 December, 2008). Bligh suggested Springborg was challenging The Simpsons' syntactically-challenged Ralph Wiggum, while Springborg labelled Bligh Pinocchio. In early December, Ombudsman David Bevan answered claims that Beattie's office in 2007 ordered "catch up" paperwork to justify the granting — without public tender — of a $900,000 contract to Professor Ross Fitzgerald to write a new history of Queensland. Bevan agreed due process in the original tendering process was not followed and that subsequent paperwork was "both unnecessary and potentially misleading" (Courier Mail, 5 December 2008). It therefore seemed apropos for Bligh to release her draft "Right to Know" legislation. But any FOI kudos was quickly subsumed when, on 9 December, Treasurer Fraser handed down a "tough but fair" mini-budget that — in response to a financial crisis that had already robbed $4.3 billion from state revenue — raised taxes by $450 million to provide a surplus of just $54 million, revised down from $809 million in June (Courier Mail, 4 December; 10 December 2008). The first wave of job losses in the mining industry soon brought the financial crisis home, and later afforded Bligh some of the bluntest populism when she called on Prime Minister Kevin Rudd to send home foreign mine workers if it meant saving Australian jobs (Courier Mail, 19 December 2008). Education again threatened to become the new water crisis when more benchmarks rated Queensland Year Four children last among Australian children in science skills and next to last in mathematics — positions lower than Kazakhstan. Bligh then vowed to put education at the top of her agenda, and appointed Victorian academic Geoff Masters to review the Queensland school curriculum. But it was Gaven MP Phil Gray who instead appeared to need schooling on constituent etiquette. In October, Gray allegedly demanded an apology and financial compensation from a senior resident for criticising him and, in December, allegedly threatened to sue another constituent for a similar rebuke. Bligh suggested Gray was too thin-skinned and should consider his future. Attorney-General Kerry Shine also suffered from foot-in-mouth disease when he suggested that some rapes have a "minor effect" on some women. The Premier similarly labelled Shine's comments as "insensitive". A new minor pro-daylight saving political party, DS4SEQ, was launched mid- month, with the hope of contesting sixty-nine seats after more than 1,000 members signed up online (Courier Mail, 15 December 2008). But the launch barely registered as Bligh met opposition on two development fronts: the plan to move the Herston Children's Hospital to Bligh's South Brisbane electorate; and Campbell Newman protesting the state government's selection of Southbank as the ABC's new studio site, a decision Newman described as "undemocratic". Bligh also officially launched 286 Political Chronicles
Queensland's sesqui-centenary celebrations although, after such a period, few in Labor circles would have felt much like celebrating.