Australian Observer


April 20 - 27









ICAC to investigate Government The NSW Independent Commission Against Corruption is to investigate the State Government's attempt to dismiss the director-general of Community Services, Mr Des Semple. NSW Premier, Mr Bob Carr, said he would welcome an investigation of the attempt to remove Mr Semple and his subsequent downgrading, arguing that the Government had nothing to hide. The last investigation of a NSW Government by the ICAC resulted in the resignation of the then premier, Mr Nick Greiner.
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Champion swimmers fail in Olympic trials Some of Australia's world-beating champion swimmers have failed to produce expected performances in Olympic trials. World breast-stroke champion Samantha Riley was beaten in the 100m final by Perth youngster Helen Denman, while world record holder Kieran Perkins failed to quality in the 200m and 400m freestyle trials and only managed a second place in the 1500 metres final. Perkins's poor form is a mystery, but it has been suggested that he may be suffering from an iron deficiency.
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CPI shows inflation is falling The latest consumer price index figures (CPI) show that inflation is falling and could soon return to the level targeted by the Government and the Reserve Bank. The March CPI was only 0.4 per cent, the lowest level for the past two years, bringing the yearly figure down from 5.1 per cent to just over 3 per cent -- just above the target of 2-3 per cent.
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Teachers in protest march Thousands of striking teachers took to the streets of Sydney to protest over the NSW Government's refusal to accede to their pay demands. About 12,000 teachers marched on NSW Parliament house in support of their 12 per cent pay claim, but the Government has indicated that it will continue to resist the claim.
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Downer promises inquiry into paedophiles The Minister for Foreign Affairs, Mr Downer, has promised an inquiry into allegations that a number of Australian diplomats serving overseas are active paedophiles. Mr Downer said the investigation may need to be a judicial inquiry and promised that the Government would deal "ruthlessly" with all cases of paedophilia.
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Howard to protect flag Prime Minister John Howard has promised to legislate to prevent any future Government from altering the Australian flag without a referendum of all Australians. Mr Howard made the announcement on Anzac Day, vowing that "no politician, no political party and no special interest group will be able to tamper with the design of our flag". However constitutional lawyers have warned that the move could be unconstitutional and open to challenge in the High Court.
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New threat to overhead TV cables The Minister for Communications, Senator Alston, has revealed that he intends to make it more difficult for telecommunications carriers to wire their pay TV cables above ground, despite calls by Optus for the Government to remove threats to its overhead cable program. Senator Alston said that both Optus and Telstra would be required to negotiate directly with councils in areas where above-ground cables were being installed and that the companies would have to produce environmental impact studies in support of their cabling program.
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April 13 -20







Reserve warns of interest rate rise The Reserve Bank has issued its strongest warning yet that interest rates may have to rise unless wage demands are kept down to acceptable levels. A report by the Reserve warns: "sustained low inflation will require slower wages growth across all sections of the economy, be they private or public, union or non-unionised, wage or salary earners".
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Packer picks up Australis Media boss Kerry Packer has won another battle with arch rival Rupert Murdoch by taking effective control of Australia's third pay TV carrier, Australis, which had been planning a merger with the Murdoch-backed Foxtel group. The $200 million deal with Australis came as a shock to most industry analysts, as well as the Murdoch camp.
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Telstra to cut staff Telstra is expected to shed up to 30,000 jobs in its push to become more productive in the lead up to an increasingly competitive telecommunications industry after 1998. The moves, outlined by chief executive Mr Frank Blount, are part of Telstra's attempts to establish its business credentials with the new Government which intends to sell off one third of the telecommunications giant.
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Fairfax head removed Only five months after he was appointed chief executive of John Fairfax, Mr Bob Mansfield has been removed from the post in what is being seen as the result of a bitter board-room struggle. Mr Mansfield's removal was apparently due to his determination to act independently from powerful interests on the board.
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ATSIC fights back The Aboriginal and Torres Strait Islander Commission (ATSIC) has decided to oppose attempts by the Federal Government to remove its independence. The decision to fight the Government's decision to put an end to ATSIC's economic and management autonomy has come as a blow to both the new coalition Government and the Commission's Chair, Ms Lois O'Donoghue, who had supported the reform proposals. Aboriginal leaders have called on the Opposition and minor parties to block the reforms in the Senate.
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University head retires The head of the peak university body, the Australian Vice-Chancellors' Committee, Mr Frank Hambly, has surprised the university world by announcing his early retirement. His decision came after two decades of helping to guide the nation's universities through one of their most volatile periods. As chief executive of the AVCC, Mr Hambly had been seen as a stabilising influence on the body which elects a new vice chancellor to lead it every two years.



April 6 -13










Tough public service head announced The man appointed to cut thousands of jobs from the Commonwealth Public Service — Mr Max Moore-Wilson, is only the second "outsider" to be appointed as secretary of the Department of Prime Minister and Cabinet in the past 50 years. Mr Wilson, 53, a former head of the NSW Roads and Traffic Authority and the NSW Transport Department, comes to the job sporting the nickname "Max the Axe".
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Nine disabled inmates die in blaze An inquiry has been demanded into the deaths of nine disabled people who perished in a fire that gutted the Kew Cottages for the disabled in Melbourne. The Victorian Government has denied responsibility for the blaze which broke out in a shelter being used to house 46 residents. Staff, who had previously complained at staffing cuts at the centre, were unable to evacuate the building in time to save all of the residents.
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Setback for Optus Vision Optus Vision is facing an unexpected hurdle in its drive for a fast roll out of its pay TV cables following a ruling by the NSW Supreme Court that it has failed in its duty to consult properly with four Sydney Councils. The court ruling is the first win by councils in their attempts to prevent Optus from continuing to attach its cables to power poles in city areas.
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Government to give Asia top priority The Minister for Foreign Affairs, Mr Downer, has moved to assure Asian country's that the new coalition Government intends to give the region the highest priority. Mr Downer gave the assurances during a speech to the Foreign Correspondents Association in Sydney as a prelude to his departure for Indonesia, Singapore and Thailand. He said he wished to dispel the perception that the Government would downgrade relations with Asia.
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Government to control Aboriginal commission The Federal Government has moved to take a stronger hand in the affairs of the Aboriginal and Torres Strait Islander Commission, with new heads of the commission to be appointed by the Government rather than being elected and financial autonomy being removed from the commission. The moves by the government to remove much of the independence of the commission comes at a time when the Aboriginal community is divided over its role and how it should be run.
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Mick Young dies One of Australia's most popular Labor Party Politicians, Mr Mick Young, has died in Sydney after a long battle with cancer. Mr Young was a key strategist who helped the Whitlam Labor Government take office in the early '70s and later served as a minister in the Hawke Government. His funeral was attended by many leading figures from both sides of politics, including Prime Minister John Howard, former prime minister Paul Keating and Mr Whitlam.
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Packer horse takes out Golden Slipper Media magnate Kerry Packer continued his recent winning streak with a win in the Golden Slipper at Randwick Racecourse when his horse Merlene took out the $300,000 event. Packer, perhaps the country's biggest gambler, has been winning both on and off the racetrack, his biggest success stemming from the successful court challenge to Mr Rupert Murdoch's Super League competition which threatened to rob the Packer camp of its exclusive rights to televise League.
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Employment figures plummet A drop of 55,000 jobs in the latest employment figures has delivered a warning to the Federal Government that strong action may be needed to improve the economy it has inherited from the former Labor Government. The news that unemployment has increased to 8.5 per cent comes at a time when unions are pressing for big wage rises and the Reserve Bank has warned that further interest rate rises may be needed to prevent inflation from taking off.
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March 22 - April 6


















Coalition sweeps back in Victoria The Australian Labor Party received its biggest blow yet with the re-election of the Coalition Government in Victoria with a barely reduced majority. Premier Jeff Kennett hailed the victory, which saw the Coalition returned with a 28-seat majority, as the most profound election result in Australia in 50 years. He said that no other government had governed with such a strong partnership with the bureaucracy and the people.
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Democrats oppose IR changes The Australian Democrats have signalled that they are preparing for a showdown with the Federal Government in the Senate if the Government goes ahead with its plans to overhaul the industrial relations system. The Democrats are particularly concerned about the Government's intention to downgrade the role played by the Industrial Relations Commission. The Government is also planning to water down existing unfair dismissal laws.
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Inquiry into Aboriginal Legal Services An inquiry into claims of mismanagement and corruption in NSW and Victorian Aboriginal Legal Services could include similar bodies in other States under proposals being considered by the Federal Government. The inquiry follows claims that the NSW and Victorian bodies have been guilty of "dereliction of duty", financial mismanagement and cronyism. At the same time, the Government has announced that it is planning major changes to the native Title Act and Native Title Tribunal, probably by July this year.
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Public service cuts grow The Federal Government has admitted that the poor state of Federal finances will probably mean that there will be more than the expected 2,500 jobs shed from the public service. However, the Treasurer, Mr Costello, has discounted claims by the public service unions that up to 15,000 jobs will be lost in the Government's cost-cutting drive.
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Keating may have Asian role "Fruitful" discussions on Australia's relations with Asian countries between former Prime Minister Paul Keating and Foreign Affairs Minister, Mr Downer, have led to speculation that the Howard Government may use the former Labor leader to help maintain relations within the region. Mr Downer told reporters after the meeting that Mr Keating's "great experience" in dealing with APEC and the region as a whole was a national resource that the Government needed to draw on.
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New uranium mine within a year Moves by uranium miner Energy Resources Australia to initiate an environmental impact study for a new mine in Kakadu National Park are expected to result in a fourth uranium mine being opened within the next 12 months. Speculation about the possibility of a speedy endorsement of the project followed a visit to the proposed mine site by the Minister for Resources, Senator Parer, and the Minister for the Environment, Senator Hill.
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Hayden publishes autobiography The publication of former Governor General Bill Hayden's autobiography, Hayden, has led to a string of revelations, including the claim that the real power in the Hawke Labor Government was always exercised by the then Treasurer, Paul Keating. In the wake of the publication of the book, Mr Hayden has also found himself embroiled in a war of words with Malaysian Prime Minister, Mr Mahathir. Mr Hayden has claimed that Malaysia is a racist country, while Mr Mahathir has tried to discredit Mr Hayden by referring to him as a "frustrated politician".
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International hunt for alleged pedophile Australian authorities have begun an international hunt for an alleged pedophile, former Sydney businessman Phillip Bell, following evidence of Bell's activities before the NSW Police Royal Commission. NSW Premier, Mr Carr, has claimed that Bell's disappearance from his home in Switzerland before extradition proceedings could be initiated could have been avoided if the commission had passed on evidence to the Government before it was made public.
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Wage rises could push up interest rates The Governor of the Reserve Bank, Mr Bernie Fraser, has warned that interest rates will be raised if employers fail to keep wage rises in check. Mr Fraser said that good sense must prevail in the present push for higher wages and that the pressure would be on employers to a greater extent than before to resist the wages and salaries push. His warnings were echoed by the Minister for Industrial Relations, Mr Reith, and Prime Minister Howard, who criticised unions for demanding wage rises of up to 15 per cent over the next two years.
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Rebel league players return Rebel rugby league teams have decided to return to the Australian Rugby League competition, dealing what appears to be a final, fatal blow to Rupert Murdoch's Super League competition. The players' return came after the Federal Court ruled against an attempt by some of the players to start their own international league competition in the wake of Federal Court rulings preventing Super League from going ahead for the foreseeable future.
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Gibson and Babe take out Oscars Actor and director Mel Gibson's success in the 1996 Academy Awards has been greeted as an Australian triumph by local media. Gibson won Oscars for Best Film and Best Director for his film Braveheart, while the other Australian nomination for a string of Oscars, Babe, won the award for best visual effects.
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Union tension grows Tensions between the new Federal Government and the union movement over the Government's industrial relations policies continued to simmer. The Minister for Industrial Relations, Mr Reith, has appointed several hard line "anti-union figures" to a new task force to review industrial relations laws and has indicated that he plans to set a deadline for phasing out paid rates awards. However, Mr Reith has tried to take some of the heat out of the industrial relations confrontation by assuring unions that the Government wants to set up safeguards to ensure that workers do not lose pay as a result of the new arrangements.
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Milat `murdered for pleasure' The man charged with the seven backpacker murders in the Belanglo State Forest, Ivan Milat, has been described by prosecutors as someone who probably killed for pleasure. However the prosecution in the NSW Supreme Court case has told the jury that it is still not certain whether Milat acted alone.
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Evidence of child sexual abuse grows The NSW Police Royal Commission has heard evidence that NSW police have failed to prosecute known pedophiles. The evidence included video tapes of the activities of pedophiles stalking young boys and graphic footage of indecent assaults on children. At the same time the State Government has been told that children who spent many years as State wards suffered sexual abuse on a wide scale at the hands of public servants. One witness, author Jan Owen, was granted a personal meeting with NSW Premier, Bob Carr, to convey details of her claims that up to 70 per cent of State wards have been sexually abused.
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Government moves on tax scams The Federal Government is moving to close tax loopholes which are costing the Government an estimated $18 billion a year. The loopholes relate to tax concessions in a range of areas, including film investments and concessions for investment in personal superannuation. The Prime Minister, Mr Howard, has indicated that the Government will move quickly to establish strict new rules for the concessions.
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Mahatir visit a success Despite predictions that the election of the Howard Coalition Government could damage relations with Australia's northern neighbours, the first visit by an Asian head of State, Malaysian Prime Minister Dr Mahathir, appears to have improved the relationship between the two countries. After extensive talks with Prime Minister Howard the two emerged giving all the signs of close friendship - in contrast with the sometimes tense relations between Dr Mahathir and former prime minister Paul Keating. Dr Mahathir indicated during the talks that an Australian company, Transfield, is in a good position to win Australia's biggest ever defence deal, a $3 billion contract to build patrol boats for Malaysia.
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Copyright April 1996 The Australian Observer.

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