Monday, 21 September 2015

Post hoc, ergo propter hoc

“I was once told that Brian Burke boasted that if the Liberals were to ever gain power, it would take them 20 years to root out the people that he had placed in the public service.”
Hon Rob Johnson, WA Legislative Assembly, 27th February 2007
 On Thursday, 21 August 2014 the Premier of Western Australia, the Hon Colin Barnett, addressed the Legislative Assembly, the lower house of the Western Australian parliament;
Has anyone noticed that the Corruption and Crime Commission has not been that busy recently because there is a LiberalNational Party in government?
It was a classic sound bite, devoid of any substance but may have been intended to create an illusion that all was well with the good governance of WA. Maybe Barnett believed his comment might act as a subtle reminder to the Opposition members that the Premier was still willing to lay claim to the moral high ground. Maybe Barnett and his Liberal-National Party colleagues were sending a message that they were ready to point towards the dirty washing of the WA Inc era again, ready to remind the electorate how the malignant influence of Brian Burke the lobbyist had continued to shame Western Australia throughout the years of the last Labor governments under Gallop and Carpenter.
Barnett is not a stupid man, he would be well aware that observing two events occurring in sequence, one after another, is not justification for an assumption that the first event in any way caused or affected the outcome of the second. Attributing a cause to an effect you have observed without any justification other than timing is foolhardy and will often result in embarrassment.
For Barnett that embarrassment came just a few months later when an article by Gary Adshead, published in ‘The West Australian’, revealed that at least three Corruption and Crime Commission investigators had been paid settlements from tax-payer funds after suffering harassment and intimidation in the workplace. Within hours of Adshead’s article appearing a press release from the Acting CEO of the Corruption and Crime Commission denied the story. But the statement from the CCC was not totally convincing as it claimed full disclosure was not possible in such confidential matters relating to industrial relations.
At the time Barnett had claimed the moral high ground for Liberal-National coalition under his leadership the Corruption and Crime Commission had no Commissioner, there had been no leader for the agency since Commissioner Roger Macknay had unexpectedly resigned midway through his contracted term in April 2014. Commissioner Macknay had not been replaced.
Just a few months after his implied claim to the moral high ground, and without any further public comment on the intimidation and harassment of the investigators, Barnett lashed out against the very concept of the Corruption and Crime Commission. In an angry outburst he alleged that the agency previously described as underemployed due to the integrity of the Liberal-National coalition, was in fact underemployed because it was malfunctioning. There were multiple points of failure within the organisation and it was not operating as it should. Barnett’s answer was to tell concerned citizens that he would;
‘... have a thorough look at the operation of the CCC over the course of this year...’
If the Corruption and Crime Commission, the agency monitoring our government, is not functioning adequately then we can draw no conclusions at all from any results, or any lack of results, coming from that agency. A non-functioning CCC offers citizens no reassurance at all that corruption is not occurring. During the seven years of the Liberal-National government the performance of the CCC has waned. Less than a decade ago Commissioner Hammond led a team that citizens could rely on. Under Hammond a robust and powerful CCC was undertaking covert surveillance of ministers, public officials and lobbyists; offering reassurance that Brian Burke and his cronies would no longer exercise influence in government. Today we have a crippled malfunctioning CCC agency that appears cowed and broken, offering no reassurance to citizens of WA.
If, as alleged, Corruption and Crime Commission officers did suffer workplace harassment and intimidation then the public needed to know who the perpetrators were. Just who was persecuting them? And why? For what purpose were they being harassed and intimidated? Paying off the CCC officers under a confidential arrangement is not tackling the source of the problem. Allowing CCC officers to leave without any payment is no better; it may be cheaper but it does not address the problem in the organisation.
On 5th February 2015 Barnett went further than to merely attack the CCC; he dropped a bombshell on the WA public when he explained to a 6PR radio audience how seven years of the Liberal-National Party had affected the integrity of the government of Western Australia. Premier Barnett believed that under the Liberal-National stewardship we were living in a state where;
‘... most corruption in WA occurs in local government.’
The Opposition, perhaps mindful of the Premier’s boast six months earlier, pounced on this admission.
On 17th February the Hon David Templeman, member for Mandurah, asked the Minister for Local Government if he agreed with the Premier. Templeman wanted confirmation that most corruption was in local government. The Hon Tony Simpson, Minister for Local Government, could neither support nor deny Barnett's assertion.
How could Simpson confirm where corruption occurs in this state?
Barnett had already explained that the Corruption and Crime Commission has not been functioning, the investigations necessary to provide assurances of good governance or evidence of corruption just have not happened during the Liberal-National term of office.
What Simpson did do, and for which he deserves credit, was to provide an answer that appeared refreshingly honest;
Put it this way: there have been a considerable number of inquiries to do with local government and other sectors as well. The important parts are what has to happen and what has happened to local government. There does not seem to be much scrutiny around local government... There are annual electorsmeetings and general questions at local councils, but there is no actual scrutiny of local government. This is one of the things I have noticed since I have been the minister; there are some areas we probably have to look at. There needs to be more scrutiny of local government... The Premier is probably right in saying there needs to be a bit more scrutiny of local government. I agree that something needs to happen... It is about making sure our local governments are accountable to ratepayers.
The Minister for Local Government is right, his carefully chosen words, '... there does not seem to be much scrutiny around local government', give the listener an opportunity to absorb the scrutiny failure a little before facing up to the harsh reality; '... there is no actual scrutiny of local government'.
Take note readers; he said it plain and simple. The Minister for Local Government clearly stated that there is no scrutiny of local government in WA.
Are you outraged yet?
But notice how he tucked the harsh reality up with the softer phrases either side, firstly 'There does not seem to be much scrutiny', then reality 'there is no actual scrutiny', followed by '... there are some areas we probably have to look at', '... There needs to be more scrutiny,' '... there needs to be a bit more scrutiny'
Primacy and recency are important when delivering any message because we remember the first and the last items of information we receive most clearly. There is no scrutiny of local government. This is an important statement for us, the paying public, to remember. There can be very few institutions operating multi-million dollar budgets where there is no scrutiny, but local government in WA operates this way.
The day after the Minister responsible for Local Government told us that there was no scrutiny the Treasurer, Mike Nahan, made a number of comments focusing on the City of Canning. He stated that, ‘The council had been seriously mismanaged for periods of time.’ Later in the debate he was critical of many other councils expressing his opinion that;
‘There is a serious lack of democracy in local government’.
The CEO of any shire within WA can operate with the executive authority of a feudal baron.
Does that cause outrage?
He has nobody to answer to in State Government. Unless the elected councillors are tough, resilient and challenging people who will provide scrutiny a local government CEO can do whatever he wishes. Most Council members are not going to challenge the CEO, and the reasons why they are not will become clearer as we explore some of the issues that arose within Augusta-Margaret River Shire.
Long after the WA Inc debacle we saw a number of very unfortunate Ministerial mishaps when it was recognised that the influence of Brian Burke was continuing unabated. He no longer held any political office but his power over Ministers could still achieve his goals. After the Corruption and Crime Commission outed a number of Ministers, forcing their resignations, it seemed for a short while that Burke’s power might wane. Instead the CCC itself was infiltrated by malignant forces and stripped of its moral authority by press reports of corrupt public officials operating within its ranks.
But maybe the government ministers were a little more wary of dealing with Brian Burke. Could he continue to be useful to his developer mates, continue to collect his retainers every month? Certainly he could if he worked at a lower level of government. A level of government where there is no scrutiny?
Local government can be a very lucrative industry, a sector where corporations can take windfall profits from land development deals and negotiate lucrative procurement contracts. Describing local government as an industry may seem a clumsy turn of phrase to many readers, but this is how the CEOs think of themselves, and it is also how state government thinks of them. The following item comes from a local government conference brochure;
‘The Hon. Tony Simpson MLA, Minister for Local Government, and David Templeman MLA, Opposition Spokesperson
The Minister and Opposition Spokesperson will present their views on the future development and direction of the industry and how they intend to influence this through their policies.’ 
In their minds they are captains of industry, making deals and visioning dreams, reporting to and receiving instructions from state government. They are doing their masters’ bidding in determining the social, economic and environmental dimensions of their towns and districts. For a fuller explanation of how this contemporary system of placing the considerations of so-called economic development before society affects our communities and our lives, I recommend Dennis Glover’s book, “An Economy is not a Society.”
Are we living in 21st century fiefdoms?
Maybe corruption has shifted from state government to local government under the Liberal-National coalition? Such a move might seem logical, given that the state parliament’s operation of the WA Inc entity had been rumbled some twenty years ago.
Back in 2007 Hon Rob Johnson had addressed the Assembly during a session debating a motion censuring the former Labor Premier of WA, Alan Carpenter, for his poor judgement in the way he dealt with lobbyists Brian Burke and Julien Grill and their activities around parliament. Johnson said;
‘... The trouble is that there are corrupt influences in every ministerial office and corrupt influences in public service in general. I was once told that Brian Burke boasted that if the Liberals were to ever gain power, it would take them 20 years to root out the people that he had placed in the public service. He was right, because many of them are still around today...’
As the WA Inc mob recognised their activities were being revealed they may well have decided to shift position, adapt and evolve their enterprises, and organise their affairs so that profits could continue to flow from the taxpayer to the cronies’ corporations even after Burke and his mates were stripped of their parliamentary power and privilege.
Certainly there are references within parliament that suggest to the lay reader that public service appointments may well have been made not on merit but on willingness to serve Burke;
“Before coming to government, I was a public servant when Brian Burke and Julian Grill reigned supreme and were parachuting their minions into the public service one after another.”
Without wishing to fall into Barnett's trap, assigning inappropriate cause and effect relationships, there do appear to be a number of changes that occurred as the WA Inc era was ending that history might interpret as positioning. The characters who manipulated state affairs so adroitly for their personal advantage during Burke’s years in government may well have orchestrated policies and legislation to allow them another avenue of enterprise when the axe inevitably fell. Good players will always have an exit strategy, a way to transition smoothly to the next profitable venture, and in Burke’s case we know he quickly moved from politics into property development.
In 1993 the Institute of Public Affairs warned that pressing ahead with local government reform to enable a more entrepreneurial approach at local government level would not be appropriate after the lessons of WA Inc.
Was that warning ignored?
Although agreeing reform of local government was required the Institute of Public Affairs recognised that permitting a degree of entrepreneurial ability at local government level would be less than desirable. The WA Inc activities had revealed the control failures inherent when the checks and balances of parliament were removed by the Executive State. Democratic freedoms are not served by the Executive State.
As joint editor of the agenda for reform and recovery published by the Institute of Public Affairs our current WA Treasurer, Mike Nahan, will be familiar with the reasoning behind the concern that organisation expressed regarding proposals affecting local government .
In February 2015 Mike Nahan said; “There is a serious lack of democracy in local government.”
I wonder what led him to such a conclusion and wonder if he will ever elaborate on this, share his thoughts, honestly.
Is he outraged?
Ordinary ratepayers would probably make a strong case that any entrepreneurial activity within local government would be so high risk, so undesirable, that to pass legislation allowing it would be a failure in the duty of care of our state government. Entrepreneurial activity by its very nature involves risk. In local Councils there is no opposition to offer genuine criticism or debate regarding proposals, no statutory requirement to retain a verbatim record of how every elected member presented their arguments for and against any proposals for investment in enterprises, no accountability. Add to the mix a Department of Local Government offering no scrutiny and the opportunity for corruption is increased considerably.
The Local Government Act that eventuated in 1995 produced a model for local government that offered the corporate players in WA windfall profits with no risks, removed any democratic process from the local government, and failed to establish any scrutiny of the activities of this newly created hydra beast.
Local government law specialist, S.Withnall, argues that there is now a system of local government within WA whereby we have 140 plus separate institutions each headed by a CEO and overseen by the Department of Local Government. But Withnall is wrong. As the Minister for Local Government, Tony Simpson, has made very clear to us all there is no oversight, no scrutiny of local government in WA. We must conclude that Withnall was writing about a perception she has gained somehow, that there could be oversight, rather than the reality that Minister Simpson explained actually occurs in local government on a day to day basis here in WA.
Our lives are controlled by an unscrutinised hydra beast.
After twenty years of domination by the local government CEOs, the state government appears to be reluctant to attempt any real reform. Local government in WA is not working and in a truly entrepreneurial enterprise any non-beneficial units would be facing the axe. Instead the Local Government Act allows the CEOs to regularly cull out any public officials who might be displaying concerns about how the institution is operating. Culling those who show tendencies of the whistleblower is a tactic Brian Burke was familiar with, and a tactic which ensures the institution can rely on total control through the dominant paradigm of collegiality.
Before venturing further into describing events and issues in local government observed here in Margaret River, and how this shire was transformed into Margaret River Inc, the concept of the commons commission and a systems approach need some explanation.


(extract from a new book discussing the issues in WA local government focused on Margaret River Inc, please feel free to comment)

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