WA Labor Under Scrutiny Over Corrupt Connections

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The World Today - WA Labor under scrutiny over corrupt connections

[This is the print version of story http://www.abc.net.au/worldtoday/content/2006/s1785898.htm ]

The World Today - Friday, 10 November , 2006 12:30:00

Reporter: Peter Kennedy

ELEANOR HALL: Now to Perth, and the scandal damaging the Western Australian Labor Government.

It's been revealed at the state's Corruption and Crime Commission that disgraced former Premier Brian Burke is still wielding influence over government ministers.

One minister has resigned over his connections with Mr Burke. Several more have dodged questions about their contact with him.

And yesterday, Premier Alan Carpenter delivered an ultimatum to his party: sever connections with Brian Burke or he would resign.

With the latest on the scandal, we're joined now in Perth by the ABC's State Political Reporter Peter Kennedy.

ELEANOR HALL: So Peter, what has emerged about Mr Burke's influence over government MPs and what's expected today?

PETER KENNEDY: Well, quite clearly he had influence over one of the ministers, Norm Marlborough, including a secret telephone line as revealed in the Corruption and Crime Commission.

And also exerting influence to the extent of trying to get people appointed to particular boards, government boards.

And that is what has led to Norm Marlborough's downfall, his resignation as a minister and today, Eleanor, the Opposition's gone on the attack, leader Paul Omodei, demanding that a number of ministers declare where they stand on the ultimatum from Alan Carpenter to say that there'll be no more contact with Brian Burke.

He's listed a number of ministers. He says they've got to declare their position and Eleanor, one by one, they are, and they're saying they will have… be having no links with Brian Burke at all and indicating they'll fall into line with Alan Carpenter's ultimatum.

ELEANOR HALL: Now Peter, just remind us why Brian Burke is such a disgraced figure.

PETER KENNEDY: Well look, this goes back quite a long time and the Burke family's involvement in the Labor Party in Western Australia goes back through Brian Burke's father Tom, a former Federal MP who had problems in the mid-fifties with the Labor Party split.

But Brian Burke's problem specifically goes back to the 80s and the WA Inc days and it was perceived that he was too close to business. He was a very successful fundraiser, probably the Labor Party's most successful fundraiser anywhere in the country.

But with that fundraising went commitments, and quite a few of those business types, Alan Bond was one, Laurie Connell was another, they did… were seen to have done very well out of the Labor Government of the day and particularly Laurie Connell with his merchant bank Rothwells, when that got the staggers with the stock market crash of 1987 and subsequently a lot of government money went into to try and prop it up and a lot of government money was wasted.

And that I think, is the central problem surrounding Brian Burke.

ELEANOR HALL: Now Peter, restrictions had been placed by the previous Premier on any contact with Brian Burke. Why did Alan Carpenter, the current Premier lift those restrictions on his ministers talking to Mr Burke?

PETER KENNEDY: He's admitted that was a major blue. He lifted that, I think, because he wanted to indicate that it was a new broom, that he wasn't associated with the Labor governments of the 80s and early 90s, whereas Geoff Gallop was. And Geoff Gallop was at pains to make sure that his government wouldn't be tainted with the problems of Labor in the 80s and early 90s.

Alan Carpenter, however, only went into Parliament in '96 and he as a journalist had covered, for instance, the WA Inc. Royal Commission and he was of the view that it was time to move on, that he didn't have a problem… he didn't have a personal problem or personal link with those disgraced Labor years and that he believed that he could lift the ban and say, alright, well, things are different. We've got to move on, we can't live in the past.

And of course his… it has turned out to be a major mistake. Not only that, he lifted a veto on the minister I mentioned, Norm Marlborough, who was very close to Brian Burke.

Geoff Gallop wouldn't have him in his Cabinet. At the beginning of last year, there was a lot of pressure to put Norm Marlborough, promote him into the Cabinet and Geoff Gallop behind the scenes said look, it's either him or me.

If you want him in, you won't have me. And that was how strongly Geoff Gallop saw it because he… Norm Marlborough in years past was known as 6NM, that he broadcast everything and that's what Geoff Gallop was not going to cop, but Alan Carpenter believing new broom, well, things will be different and unfortunately for him, they weren't.

ELEANOR HALL: So Peter Kennedy, how damaging is this likely to be for Alan Carpenter and his Government?

PETER KENNEDY: Well look, it's a huge setback for Alan Carpenter. He's been on a huge learning curve this year and yesterday he said that he was incandescent with rage.

But he put this ultimatum out: alright, it's either Brian Burke or me. His ministers fell into line and said, it's you. Okay, but look, a lot of the gloss… it'll knock a lot of the gloss off Alan Carpenter. They're in crisis control at the moment and the next few months are going to be very, very important to just whether he's going to survive as Premier.

He's popular with the electorate, but the next few months will actually be crucial.

ELEANOR HALL: Peter Kennedy at State Parliament there in Perth, thank you.