Betfair, Lib finances, Packer, journo lists,
July 14, 2008
Here are Stephen Mayne's seven stories from the Crikey edition on Wednesday, January 18, 2006.
6. The colourful crew at Betfair
By Stephen Mayne
Could PBL have picked a more colourful partner than UK betting exchange, Betfair, to take on the incumbent state totes? Fresh from all the allegations about free upgrades for Paul Lennon at Crown Casino, the latest issue of UK magazine Private Eye has done over Betfair's company secretary and legal director, Martin Cruddace.
Anyone who followed the City Slickers share buying scandal that engulfed The Daily Mirror in the UK would know that it was a sordid affair in which reporters and the paper's then editor, Piers Morgan, profitably bought shares in companies before they were tipped on the powerful tabloid's business pages.
Well, it turns out that Cruddace was the lawyer responsible for checking the column and he also happened to own a racehorse with the main reporter involved, James Hipwell and Morgan, otherwise known as "Moron" by Private Eye. Hipwell is now a convicted criminal and Morgan left the Mirror in disgrace.
Cruddace was first asked to investigate the Slickers team by his bosses and quickly wrote in a report that "the evidence appears to exonerate the Slickers from any allegations of ramping." Private Eye goes on to say:
The Department of Trade & Industy wrote to the Mirror expressing its concern that several of the Slickers' columns might be in breach of the 1986 Financial Services Act. Once again Cruddace used his full legal authority to offer blithe reassurance: though the column might be 'unusual for a tabloid newspaper,' it was 'a legitimate form of journalism.' But he neglected to mention that he himself had bought shares in three separate companies just before they were tipped by the Slickers, and persuaded his girlfriend's father to invest as well.Doesn't that augur well for the probity of racing in Australia?
The Sunday Times had a good piece on the recent boardroom upheaval at Betfair which saw CEO Stephen Hill depart last October and then three directors, including chairman Sir Robert Horton, resign two weeks ago as disputes emerged about floating the business. No doubt legal director Cruddace will ensure honesty and probity prevails.
11. Has Crikey bankrupted the Liberal Party?
By Stephen Mayne
Crikey has been accused of plenty of things over the years but never before has it been suggested we've bankrupted anyone, let alone a major political party.
"Has Crikey bankrupted the party?" That was the question put to South Australian Liberal leader Rob Kerin this morning by ABC Adelaide's Morning host David Bevan during an outside broadcast interview from the steps of Parliament House.
The context was that Kerin said Crikey's activities at AGMs had scared boardrooms away from making donations. He can only be referring to the Adelaide Bank and this subsequent sealed section after the 2003 AGM:
Crikey spent a few hours in Adelaide on Friday courtesy of no-pokies MP Nick Xenophon who wanted to put some pressure on the Adelaide Bank for their excessive political donations.
He had a point as this sleepy regional bank with a capitalisation of about $800 million managed to donate $110,000 to the Libs in 2001-02 and $100,000 to Labor, making it the third largest donor in South Australia after the pokie-pushing Australian Hotels Association and Gerard Industries.
Whilst Crikey is keen to work with Xenophon beating up on the gaming industry, the lad is genuinely committed to reforming campaign finance and points out that South Australia has no laws requiring disclosure so any funds given to him or other SA-registered outfits can remain secret. Mike Rann should close this loophole pronto.
Rather than specifically naming me, Kerin should have named Xenophon because he organised the whole thing, including the press conference after the AGM, which generated plenty of local media coverage and sparked the change in board policy.
The South Australian Liberals are said to be in worse shape than any other state division, partly because Adelaide Bank is refusing to donate and presumably because Rob Gerard is licking his wounds after the scandal surrounding his tax affairs and the Reserve Bank board.
Given that every other state Labor government has receiving a thumping second term majority and Mike Rann's huge lead in the polls, this year's South Australian election is shaping up as a landslide, which is not a good environment to be raising money in.
Maybe the Federal Liberals should help their South Australian cousins out with a loan, especially given the disproportionately large number of Crow Eaters in the federal cabinet.
23. Women's Weekly joins the Packer memorabilia industry
By Stephen Mayne
The latest edition of The Bulletin is out and there is no mention of Kerry Packer's legacy in any of the stories, but page 73 carries a big house ad which declares: "Due to incredible demand our special tribute to Kerry Packer can now be purchased online at www.bulletin.kerrypacker.magshop.com.au."
There is no mention of the additional print run of 50,000 to coincide with the February 17 memorial service and a proposed one hour advertising-free documentary on Channel Nine.
However, there is another leg to the Kerry Packer memorabilia industry and that is the February edition of The Australian Women's Weekly, which The Bulletin tells us in a full page house ad on page 13 will include "20 pages of family photos. The very private Kerry Packer. His wife and daughter share their treasured memories."
Hmmm, this is where the mistress revelations will get interesting. So far we've only publicly heard Ros Packer's friend Rowena Danziger declare that "she put up with a lot" over the years. I've heard Lloyd Williams, executor of the Packer estate, say the same thing, so exactly what have the Packer women told ACP's flagship?
One suspects it will be a slightly different tone to Women's Day's breathless declaration over four pages this week that Simone Warne has taken up with Shane's best mate, AFL footballer Aaron Hamill.
Despite the "on sale now" declaration in The Bulletin ad, we won't see February's Weekly until January 23, when Paul Lennon's beautiful renovations will also be on display. Can't wait.
25. Another 13 hacks in Parliament
By Stephen Mayne
And here we were thinking our list of 40 hacks who made it into Parliament was definitive. Piles of emails later, we've added the following 13 names so do check out what is now a far more comprehensive list numbering 53 and send any further corrections or additions to smayne@crikey.com.au:
Michael Atkinson: the South Australian Labor Attorney General and media junkie was once The Advertiser's industrial reporter but is very coy about this background on his website.
Tony Benneworth: Former Tasmanian state cricketer and journalist, who rose to become the uninspiring Liberal member for the state seat of Bass. Now a newsagent and turned up at the 2005 Gunns AGM to heap praise on the giant tree-lopping outfit.
Bob Cheek: the former Liberal leader in Tasmania is best remembered for his 2005 book lifting the lid on political perks but before that he was a businessman who had previously spent time as a journalist with The Mercury in Hobart, a profession two of his children have followed him into.
Kerry Finch: independent member for Rosevears in the Tasmanian upper house who was dumped as a morning presenter on the ABC in Launceston in 1999 after 15 years.
Les Haylen: the federal ALP member for Parkes from 1943 until 1963 was news editor of Australian Women's Weekly from 1933 to his entry into parliament.
Delia Lawrie: Northern Territory Minister for Family and Community Services, and Sport and Recreation, was a journalist with the Northern Territory News, The Advertiser and The South China Morning Post before she won the Darwin seat of Karama for Labor off the CLP in 2001. Also worked for the AJA in Melbourne.
Barbara McCarthy: Northern Territory Labor MLA for Arnhem and one of the first Indigenous women in an Australian Parliament. Barbara was strongly promoted by Emily's List which says she was an ABC news presenter in Sydney and Darwin and a contributing reporter to the ABC series Blackout.
Neville Oliver: the former head of sport at the ABC failed when he ran as Labor's candidate in the Tasmanian lower house seat of Franklin in 1998 but in 2002 he achieved his goal by replacing replaced Fran Bladen, as is explained in this St Patricks school newsletter.
Clyde Packer: After surrendering his media proprietor role at PBL to his brother Kerry for $4 million in 1976, the elder Packer son quickly went into the NSW Upper House as one of the youngest ever Liberal MPs.
Tony Rundle: The Liberal premier of Tasmania in the mid-1990s was a television reporter in the 1980s.
Malcolm Turnbull: the member for Wentworth worked as a journalist during and after his studies at The Bulletin, 2SM, Channel Nine and The Sunday Times in London but he made his name as a lawyer, investment banker and Republican.
Diana Warnock: long time ABC radio personality and subsequent MLA for Perth in the WA Parliament from 1993 until retiring in 2001.
Grant Woodhams: the new National Party member for Greenough in WA worked with ABC radio in Tasmania, South Australia, NSW and Victoria as well as being the Channel 7 weatherman in Perth for many years.
26. Journalists who failed to reach elected office
By Stephen Mayne
Our list of journalists in parliament proved so popular yesterday that we're opening up two new categories. Firstly, we're adding journalists who have made it into local government, the best two examples being:
Sally Ann-Atkinson: a journalist at Rupert's late unlamented Telegraph in Brisbane before moving on to become Lord Mayor of Brisbane and now chairs childcare behemoth ABC Learning.
Peter Costigan: the former journalist for The Herald in Melbourne rose to become Lord Mayor of Melbourne from 1999 until 2001 but then sadly died in 2002.
More controversially, we're going to list every journalist who has failed in a tilt at office across any of the three tiers of government. Here are a few names to get things moving:
Elaine Canty: the former ABC broadcaster ran unsuccessfully as Peter McMullin's deputy in the 2001 Melbourne City Council elections.
Alan Jones: Famously ran for the Liberal Party in the 1978 Earlwood by-election but lost, as Wikipedia notes in its profile of the 2GB shock jock.
Rod Henshaw: the former Breakfast presenter on 612 ABC Brisbane lost narrowly to Cheryl Kernot when running for the Liberals in Dickson in 1998.
Greg Hoy: the television journeyman turned Melbourne restaurateur ran on People Power's ticket for Melbourne City Council in 2001.
Stephen Mayne: the Crikey founder ran for Jeff Kennett's old seat of Burwood in 1999 and also failed when running for Lord Mayor of Melbourne in 2001.
John Remus: Tasmanian newsreader who has tried and failed to win the seat of Denison in Tasmania for the Liberals on a couple of occasions.
Phillip Satchell: was given a send off from ABC Adelaide at The Italian Centre in October 2003 where 250 listeners had been encouraged to pay $65 a head for a three course nosh up celebrating his 43-year career. Surprised many by announced on the night that he'd be running on Nick Xenophon's No Pokies ticket in this year's SA election. We're predicting he'll lose.
John Sevior: the man who now runs Perpetual's Australian equities portfolio spent several years as a business journalist for Fairfax in the 1990s and before that ran unsuccessfully for the old Richmond City Council in Melbourne but Xenophon may get back.
Chris Uhlman: Jon Faine's senior producer on ABC 774 Melbourne will be returning to Canberra this year where in 1998 he was an unsuccessful candidate for the Paul Osborne Group. Osborne was a right to life footballer who played for the Canberra Raiders and served two terms. Uhlman worked as a staffer for Osborne and also presented the Breakfast program on ABC 666, after earlier working for The Canberra Times.
It will be very interesting to see how long this list finishes up. Send all additions and corrections to smayne@crikey.com.au but don't think we're saying this is a bad thing.
31. The Macquarie Bank files
By Stephen Mayne
Another day, another raft of issues surrounding Macquarie Bank. First, we had reports that Macquarie Airports and Macquarie Communications Infrastructure Group would pay no performance fees for the second half of last year, something The Australian celebrated by leading with it in its business section this morning.
The Australian also led its business section yesterday with Macquarie missing out on any T3 work, continuing its negative campaign against the bank as revenge for the defamation action it's running against the paper for its Walkley-winning coverage of Macquarie's extraordinary Allstate Exploration dealings around the Beaconsfield Gold project in Tasmania.
There were plenty of other issues for the Millionaires Factory to deal with yesterday. Firstly, Macquarie Country Wide trust announced it was ploughing another $360 million into US-based property firm First Washington, lifting its stake to 75% and continuing a phenomenal global asset splurge.
Then there were rumours that Macquarie Bank is circling Britain's largest water company, Thames Water. The Daily Telegraph in the UK reported the following:
Macquarie is believed to be trying to sell its investment in South East Water to leave it free to join the Thames bidding and avoid breaking official rules which prevent a company owning more than one water business.
Talk about turning over assets. Macquarie only bought South East Water for $1 billion in October 2003. Now they want to participate in an estimated $20 billion purchase of Thames Water, which is owned by German utility RWE, the former parent of German construction company Hochtief which owns 51% of Leighton Holdings, Macquarie's regular tollroad partner.
Moving right along, we had more reports today about the dealings of Macquarie Equities in Pacific Brands after last Friday's belated and controversial profit downgrade. The Smage focused on Macquarie being the biggest seller of the stock after the call went through from PacBrands investor relations boss Katherine Cooper to an unnamed Macquarie Equities analyst at 11.30am last Thursday. However, The Australian was more supportive, pointing out that Macquarie was also the biggest buyer of the stock and the ASX doesn't appear to be going anywhere with its inquiry.
The question of analyst independence also arose in The AFR this morning, which highlighted a scathing Macquarie Bank analysis of Telstra released just two days after it was left off the Federal Government's T3 selling panel. The report was titled "A millennium of underperformance," and predicted Telstra shares would be down at $3.75 within 12 months. Coincidence? Maybe.
Finally, The AFR also reported that Macquarie was running the ruler over the Australian operations of South African life insurer PrefSure, which just goes to show that at any point in time, our biggest investment bank is running the ruler over dozens of potential investments. How anyone can keep up with all this activity is hard to comprehend. The market sent Macquarie Bank shares up $1.34 to $71 yesterday but they retreated 45c this morning in a weaker market.
32. NAB's cynical super slug
By Stephen Mayne
National Australia Bank produced plenty of headlines in Australia and the UK this morning with its belated but ruthless restructure of the superannuation entitlements of its 9,000 workers in the UK. The Guardian's report included the following:
Finance union Amicus is now intending to ballot the 9,000 staff of the two banks, which are owned by National Australia Bank, over plans to change the scheme to one based on average earnings. The group plans to inject £100m into the pension scheme as part of the planned changes. All final salary benefits accrued up to March 31 2006 will not be affected.
Not surprisingly, Australian papers such as The SMH were less concerned about the ethics and IR elements of the move, preferring to focus on the financial aspects. Given the billions of dollars that NAB has made from its UK adventures over the past 15 years, it is quite outrageous that they have allowed a $1 billion superannuation deficit to emerge.
When NAB sold its Irish banks for $2.5 billion in December 2004, it gloated about making a $1.1 billion profit. Naturally, the Irish pensions had to be fully funded for the sale, so why on earth didn't they use some of the proceeds to plug the holes in the pension schemes of the remaining UK banks?
This $234 million injection is contingent on the bank's staff approving the cut in future payments. It shouldn't be contingent on anything because the scheme should be fully funded. How on earth did NAB's board tolerate this blow-out emerging over the years as they regularly announced profits of $4 billion a year?
Unless you are flat broke, employee entitlements should be fully funded and fully provided for in the accounts. The Howard Government has been doing exactly the same dodgy thing as NAB over the last 10 years, announcing record budget surpluses whilst allowing unfunded super to blow-out by $15 billion to $90 billion. However, at least they are belatedly moving to plug this hole with the Future Fund, which should actually be called the Past Fund.
If the Howard Government had adopted the same tactic as NAB, they would have simultaneously insisted on cutting future benefits as a condition of establishing the Future Fund.
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