Peter Beattie, Sell sell sell, and unionists on the dark side
July 22, 2008
Here are Stephen Mayne's three stories from the Crikey edition on Wednesday, 29 March, 2006.
1. It's time to sell, sell, sell
By Stephen Mayne
The smarter members of the BRW Rich List can recognise a bubble in a market and take advantage by selling out to some over-exuberant buyer.
Brisbane property player and large Unitab shareholder Kevin Seymour is a classic example as he sells off his portfolio. He was joined by Melbourne's billionaire Besen family who on Friday will receive a cheque for $621 million from GPT in return for 50% and management rights in the Highpoint shopping centre in Melbourne's west.
This morning, another billionaire, Lang Walker, is out there declaring on the front page of The AFR that his $1 billion-plus property portfolio is also up for sale. And why not, given the stupid prices that various superannuation-driven institutions are prepared to pay.
With the All Ordinaries breaking through 5000, the question of cashing out some if not all of your investments is surely something that many other Australians should be considering.
The Federal Government is certainly continuing its approach of selling everything that isn't nailed down and the decision to get rid of Medibank Private appears perfectly timed given the reliance of that business on equity returns.
However, the government and the Reserve Bank board should also seriously consider dumping their remaining 80 million tonnes of gold. As this RBA table shows, the market value of the holding has soared from $1.4 billion to almost $2 billion over the 14 months to February and yesterday's surge past a record $800 an ounce valued the holding at $2.25 billion.
All this makes the decision to dump 167 tonnes for $2.43 billion in 1997 pretty stupid. It also makes this radio interview John Howard did in Kalgoorlie on 19 April 1999 look different too. The PM gloated that no sale "would have cost our federal reserves very dearly", the decision was "very intelligent" and "it was an astute decision ... given the movements in the value and the market price of gold on world markets".
Hmmm, we fetched $412 an ounce at the time. If we'd held on to the stake until today we could have sold it for $4.7 billion, rather than the $2.43 billion we fetched. Oh well, what's a $2.3 billion opportunity cost between friends.
Sure, we should consider what the RBA did with the money and any returns it generated, but it was John Howard who was gloating on radio about getting his timing right, so he should be asked today whether he now has any regrets.
At the very least, the RBA should consider dumping the rest of their holding with gold at a record high.
5. Why Peter Beattie doesn't need any help from the South
By Stephen Mayne
Queensland Premier Peter Beattie has been out banging the drum calling on more people in Melbourne and Sydney to make donations to those struggling in the aftermath of Cyclone Larry.
Given the large subsidies that Victoria and NSW already make to Queensland through the GST carve-up, this is a bit rich, especially when you consider that Queensland is easily the richest Australian state.
For instance, I'll be heading along to tomorrow's shareholder vote for the Melbourne-based Australian Energy which the Queensland government-owned power company, Ergon Energy, wants to buy for $103 million or $1.95 a share. However, the scheme of arrangement vote will probably go down because Melbourne's billionaire Liberman family have bought a 19% blocking stake.
At a time when Queensland should be devoting its $100 billion-plus balance sheet to restoring power and other services in FNQ, it does seem a little odd that a state-owned utility is proposing to venture south of the border and spend $103 million.
Of course, it was only last month that Queensland Rail participated in the $1 billion carve-up of ARG, which gave the Beattie government a large interest in Western Australia's rail system.
If a state is so rich that is can splash hundreds of millions on expanding government-owned utilities interstate, surely it doesn't have to cry poor and plead for more donations by private citizens in Melbourne and Sydney.
Sydneysiders already put up with taxes that are about 40% higher than those of their northern neighbours.
Finally, it would be interesting to know how much Peter Cosgrove is being paid by Queensland and Federal taxpayers for his work over the next six months. Cosgrove is already on a very tidy pension and is picking up more than $100,000 from his position on the Qantas board. When you ask Cosgrove to speak, his agents want a fee of $20,000 plus two business class airfares and 5-star accommodation.
What did his agent ask for when Peter Beattie rang a few days ago?
12. Unionists who crossed to the dark side
By Stephen Mayne, self employed home-based contractor and proud member of the MEAA
Crikey has literally produced hundreds of lists over the past six years but one of my all-time favourites was the long list of former union officials who had crossed to the other side to join big companies or take on a senior management role.
Many unionists are up in arms about Hugh Armstrong, the 29 year veteran of unions or workplace compensation, for accepting a position on John Howard's Fair Pay Commission, which is expected to take a tough line on the minimum wage.
However, Hugh is just the latest in a long line as you can see from our list which includes more than 50 names that were supplied in 2002 and 2003. Sure, some of it will be a little dated so please send through any corrections or additions to smayne@crikey.com.au.
Here are a few of the more notable examples:
Simon Billing: WA Branch BLF to NSW Branch of Australian Mines and Metals Association (representing Rio Tinto and the like).
Gary Collis: former SA State Sec with ASE/FIMEE, then Liberal appointed Employee Advocate for SA.
Mike Coonan: from AWU to blue-blood legal firm Freehills.
Graham Gosling: from national official of CEPU, to senior executive with Thiess.
Peter Marsh: from the ACTU to Qantas.
John Henderson: from AMWU firebrand to Adecco.
Dave Higgon: NSW BWIU to Multiplex.
Paul Houlihan: from the Federated Clerks Union to Reith henchman on the waterfront.
Heinz Lepahe: former AWU official to the Australian Industry Group.
Chris McArdle: NSW Labor Council to solicitor with KPMG legal advising employers on anti-union tactics.
Peter Parkinson: from Trades Hall Council industrial officer to Transfield's national HR manager.
Ann Sherry: from Victorian Public Sector Union to CEO Bank of Melbourne and Group Executive for Westpac.
Brian Sullivan: former ASU national executive president, to Victorian Department of Human Services as an IR consultant.
John Tolley: former federal industrial officer for the Printing and Kindred Industries Union, who went to work as HR manager for Lindsay Fox, then joined the Industrial Relations Commission.
John Van Camp: from CFMEU-FEDFA state secretary to Grocon Industrial Manager.
Tony Wilk: CFMEU to General Manager Development, Adsteam Marine.
Jim Young: former Secretary of Victoria's Public Service Union, then KPMG, then boss of Global Employee Relations at NAB.
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