Latest / Inside Politics / Salacious texts and detail, but did the corruption watchdog’s first case fall flat?
Transcript
- 0:00S1: From the newsrooms of the Sydney Morning Herald and The Age.
- 0:03S1: This is inside politics. I'm Jacqueline Maley, it's Friday, July 4th.
- 0:12S1: The creation of a national anti-corruption commission was a key
- 0:15S1: labor promise before it won government in 2022. The commission
- 0:20S1: was duly created and this week it released the findings
- 0:23S1: of its first ever investigation. But was it a little anti-climactic?
- 0:28S1: Can we hope for bigger and better corruption busting in
- 0:30S1: the future? Plus, we check in on economic matters, including
- 0:34S1: interest rate cuts and the confusing matter of the Trump
- 0:37S1: tariffs and their effect on the Australian economy. Joining me
- 0:41S1: to discuss we have first time Inside politics guest, a
- 0:43S1: much honoured new star, federal politics reporter Olivia Island, and
- 0:48S1: our longtime special guest star, senior economics correspondent Shane Wright.
- 0:52S1: Welcome to you both.
- 0:54S2: Good to be here. Thank you very much.
- 0:56S3: Don't take any pressure from what Jack just said to you, Olivia, like,
- 1:00S3: as a special guest star, I've come to lean into it.
- 1:04S1: We can call you a veteran, which is a bit
- 1:05S1: of a backhanded compliment. My favorite kind.
- 1:09S3: And I. And I accept that. I'll accept.
- 1:11S1: That. Live. At the start of the week, the newly
- 1:14S1: minted National Anti-Corruption Commission released the findings of its first
- 1:18S1: ever investigation. What was it about and what were the findings?
- 1:22S2: So a senior public servant had corruptly promoted her sister's
- 1:27S2: fiancee to his dream job in the Department of Home Affairs.
- 1:31S2: The investigation found the public servant abused her office by
- 1:35S2: promoting the fiancee as a candidate for a position, and
- 1:39S2: then praised him to colleagues, created the job requisition. Um
- 1:44S2: approved it herself, and she also forged a signature to
- 1:48S2: fast track the onboarding and the way that the commission
- 1:53S2: approved this was the case. They were able to obtain
- 1:56S2: text messages between her and her sister about the entire
- 2:00S2: process of getting the fiance into the Department of Home Affairs.
- 2:05S2: They're pretty, pretty awkward kind of text messages. A great
- 2:09S2: example is the woman who hired the fiance. When she
- 2:14S2: hired him, she texted her sister saying, I just want
- 2:18S2: to hug him. Thank God he stuck his hand out first.
- 2:21S2: And then the sister responded saying, what a good boy.
- 2:25S2: He's such a good boy. So really kind of proving this, uh,
- 2:30S2: attitude of using the system to your advantage effectively.
- 2:35S1: Yeah. And really active deception.
- 2:37S2: Very active deception. And using her position of power to
- 2:42S2: just get this person through and get him through very quickly.
- 2:47S1: The finding of the investigation was basically that there was
- 2:49S1: corruption there. Um, it was sort of a case of nepotism,
- 2:52S1: I suppose. What was the outcome or what were the penalty,
- 2:55S1: if any?
- 2:56S2: So it was unclear what the actual outcome was from
- 3:00S2: the actual NAC report. So the NAC did their investigation
- 3:04S2: and they didn't identify this person. So the way we
- 3:09S2: found out what the outcome was for this person was
- 3:12S2: to go to the Department of Home Affairs, and the
- 3:15S2: department confirmed that her employment was ceased. But she hasn't
- 3:20S2: really lost any sort of reputation, I suppose, because the
- 3:25S2: NAC decided to keep her identity a secret.
- 3:29S1: Yeah. Okay. And why would they have decided that? Why
- 3:32S1: would they have protected her identity?
- 3:33S2: They based it off a couple of reasons. The big
- 3:36S2: one that they argued was the issue of identifying witnesses.
- 3:41S2: So because this woman got someone in who was the
- 3:46S2: fiancé of her sister, it would become quite obvious as
- 3:49S2: to who the sister was and who the fiancé was.
- 3:52S2: And those two weren't found to be corrupt. It was
- 3:55S2: only this particular woman. But experts in the integrity space
- 4:00S2: were arguing that this is a pretty loose, uh, reason
- 4:04S2: to have someone de-identified. Um, they're sort of saying that
- 4:09S2: in any kind of typical prosecution case, witnesses are identified
- 4:14S2: all the time, and that is a completely acceptable and
- 4:17S2: normal element to it. So, uh, yeah, a lot of
- 4:20S2: integrity experts are kind of claiming that this is sort
- 4:23S2: of a cultural thing with the knack of just remaining
- 4:27S2: so secret.
- 4:29S1: Nepotism in the public service is obviously inappropriate and has
- 4:32S1: been found to be corrupt in this case. But the
- 4:35S1: matter doesn't it doesn't seem like a huge systemic sort
- 4:38S1: of headline corruption controversy, you know, the likes of which
- 4:42S1: we're more used to seeing here in New South Wales,
- 4:44S1: for example, with ICAC, which has made some very big,
- 4:47S1: big decisions and big cases, it almost felt a little flat.
- 4:52S1: I'm gonna say, for the first decision of the National
- 4:55S1: Anti-Corruption Commission, how was it received around Parliament?
- 4:59S2: It was almost crickets when it came to what the like,
- 5:04S2: how people reacted to it. Frankly, there was really no
- 5:07S2: reaction because it was such a minor case, as you say,
- 5:10S2: within the public service. I think the Albanese government made
- 5:14S2: a very deliberate decision to ensure the NAcc wasn't going
- 5:20S2: to be this kind of big tabloid kind of organisation
- 5:24S2: that was going to get significant kind of cases and attention.
- 5:30S2: And that's caused a lot of criticism throughout, because people
- 5:35S2: are starting to question whether or not this organisation is
- 5:37S2: actually doing what it's supposed to do, which is to
- 5:40S2: keep very powerful individuals to account. And a lot of
- 5:44S2: integrity experts argue, the way that you do that is
- 5:47S2: identifying people and actually going for cases that are like
- 5:52S2: higher profile than sort of these menial kind of mid-career
- 5:56S2: public servants.
- 5:57S1: Yeah. And just sort of one job or one case
- 5:59S1: or one job. So speaking of sort of bigger, like
- 6:02S1: bigger whales, if you like. There was the robodebt investigation,
- 6:06S1: which listeners will remember were debts that were raised between
- 6:10S1: 2015 and 2019 by the former coalition government, and they
- 6:14S1: were raised using um average Australian Tax Office income information.
- 6:18S1: And a lot of them were, I think, about half
- 6:20S1: a million people in the end were asked to repay
- 6:23S1: debts that they didn't actually owe. That was a huge
- 6:25S1: scandal for the Morrison government. It was, of course, examined
- 6:29S1: by a Royal commission which was commissioned by the Albanese government.
- 6:32S1: And there was talk that the National Anti-Corruption Commission would
- 6:35S1: be involved in that. Can you bring us up to speed?
- 6:38S2: That has been quite a rigmarole for the National Anti-Corruption Commission.
- 6:43S2: So basically, the Commission at first decided not to investigate
- 6:49S2: these six individuals that were identified by the Royal Commission
- 6:53S2: as needing to be investigated.
- 6:56S1: And this is this is sort of senior public servants
- 6:58S1: that the commissioner was very critical of in her investigation.
- 7:01S2: Yes. And, um, that really raised a lot of controversy.
- 7:06S2: And so there's actually a body that is, uh, in
- 7:10S2: charge of overseeing the NAC. So it's kind of like
- 7:13S2: the NAC for the NAC, if you will. Um, and
- 7:17S2: that body investigated that decision and found that the commissioner
- 7:21S2: of the National Anti-Corruption Commission, Paul Brereton, had acted in
- 7:26S2: a way that made the case sort of not go
- 7:30S2: in the direction that it should have gone, because he
- 7:33S2: didn't fully pull himself out of a case when he
- 7:36S2: knew someone involved in this robodebt saga.
- 7:40S1: He personally knew the person.
- 7:42S2: Yes.
- 7:42S1: Um, and yeah, well, that's Canberra for you as well,
- 7:45S1: isn't it. Very. It's a small town, Canberra.
- 7:47S2: Um, so then, uh, the NAC has decided to reinvestigate
- 7:53S2: this case, and so they are currently now back in
- 7:56S2: on it. It's currently underway. Paul Brereton isn't involved this time.
- 8:00S2: And the latest update from the NAC on this is
- 8:03S2: that it's still being investigated.
- 8:05S1: Do you think that that means that the NAC is
- 8:07S1: sort of open to accusations of being a bit toothless,
- 8:10S1: you know, being a bit basically a bit weak? I mean,
- 8:13S1: the Albanese government brought it in with so much fanfare,
- 8:16S1: and it was a bit of a political play, I suppose,
- 8:18S1: during that 2022 election campaign to shine a light on
- 8:22S1: some of the more dubious and unethical practices that we'd
- 8:25S1: seen happen within the Morrison government and among some of
- 8:27S1: the ministers there. Is it just is it all for show?
- 8:30S1: I mean, is it actually going to sort of brush
- 8:33S1: out any real corruption? Do you think.
- 8:34S2: It's really a watch this space? But we've been saying
- 8:37S2: that since it began in mid 2023. So it is um,
- 8:44S2: it's getting a real kind of cohort of people, particularly
- 8:48S2: like lawyers, integrity activists, uh, in this space, getting incredibly
- 8:53S2: frustrated and are calling it a toothless organisation. And I think,
- 8:59S2: you know, the Albanese government created the NAC, but no
- 9:04S2: government wants to get in trouble and no government wants
- 9:08S2: to have bad publicity. So I think there were a
- 9:12S2: lot of provisions in this legislation, particularly that a lot
- 9:16S2: of hearings are in closed door hearings like they're not public. Um,
- 9:21S2: even this like recent case, it was completely, um, closed.
- 9:26S1: In-camera.
- 9:26S2: We had no idea about it until it came out.
- 9:29S2: And also, the NAC does get to decide what kind
- 9:32S2: of cases they can put public media releases out about.
- 9:36S2: So we we don't know necessarily if this is the
- 9:40S2: first investigation they've completed or if there are others. Um,
- 9:45S2: it's it's very difficult to kind of keep up to
- 9:49S2: date as to what kinds of cases it is looking into.
- 9:53S2: Aside from robo debt, because there's been so much interest
- 9:55S2: in it. Um, so yeah, it definitely has established this
- 10:00S2: kind of reputation by certain people as being a toothless organisation.
- 10:06S1: And sort of operating in some. With some level of
- 10:09S1: secrecy or a lack of transparency to to media. Anyway,
- 10:12S1: it sounds like it's really interesting, and we would definitely
- 10:15S1: like to have you back on another time to talk
- 10:17S1: about it and keep us updated. We have to segue
- 10:26S1: sharply now to matters economics, so that our special guest star, Shane,
- 10:30S1: can bring us glad tidings, because it sounds like the
- 10:34S1: reserve Bank is going to cut us a break next week.
- 10:37S3: Well, it's if you've got debt, it's a good thing.
- 10:40S1: Well, let's assume that I've got some debt, okay.
- 10:43S3: I would never make that assumption about you.
- 10:45S1: I live.
- 10:46S3: In Sydney.
- 10:46S1: So.
- 10:47S3: Yeah, but, yeah, like, um, the reserve Bank. It's been
- 10:51S3: talking about quiet. The RBA, since it cut rates in
- 10:55S3: May has been quiet very little in terms of public commentary, but, uh,
- 11:00S3: financial markets and economists think or Michelle Bullock, She's going
- 11:03S3: to stand up next Tuesday after the their meeting and go, look,
- 11:08S3: we're going to take another quarter percentage point off the
- 11:11S3: cash rate, which would take it down to 3.6 on
- 11:14S3: a mortgage of your caliber Maly, uh, at least $100
- 11:20S3: a month saving on top of the, uh, couple of
- 11:23S3: hundreds that's been saved over the from the February and, um,
- 11:28S3: May cuts.
- 11:29S1: Okay. So let's let's without making any assumptions about the
- 11:32S1: size of my mortgage one way or the other. But
- 11:35S1: according to what you wrote earlier in the week, it
- 11:37S1: will equal $300 a month in savings on a $600,000 mortgage.
- 11:41S1: All the cuts combined since February and March. Yeah, yeah,
- 11:45S1: May I should say.
- 11:45S3: And it's all playing out because of what's going on
- 11:47S3: in inflation. Um, which like we got figures last week
- 11:52S3: the best like these were monthly inflation figures. They are
- 11:55S3: a little bit noisier than the quarterly ones. However everyone's
- 11:59S3: looked at the details of those and gone look the
- 12:02S3: RBA like remember, in May, the RBA discussed whether to
- 12:06S3: have a quarter or a half a percentage point cut. Yeah.
- 12:09S3: And since then, the jobs market is still going nowhere.
- 12:13S3: Wages growth is slightly coming down, which has been one
- 12:16S3: of the concerns.
- 12:17S1: And retail sales as well are a little bit sluggish
- 12:19S1: aren't they.
- 12:20S3: Retail sales have gone effectively nowhere since the RBA has
- 12:23S3: started cutting.
- 12:24S1: That brings us to the international scenario. I mean there's
- 12:28S1: so much volatility obviously coming from the white House. What's
- 12:31S1: the Federal Reserve doing about interest rates for Americans just
- 12:34S1: quickly and.
- 12:35S3: Fending fending Jerome Powell.
- 12:38S1: Jerome Powell. So he's the chair of the Federal Reserve
- 12:40S1: in the US which is yeah, like.
- 12:42S3: He's America's answer to Michelle Bullock. He is fending off
- 12:45S3: like even even on Thursday Donald Trump is demanding that
- 12:50S3: he resigns.
- 12:51S4: I'd love him to resign if he wanted to. He's
- 12:53S4: done a lousy job. Look, if you were there, you'd say, well,
- 12:58S4: you know, the United States is doing well. They have
- 13:01S4: no inflation.
- 13:03S1: And Donald Trump has had a few sort of has
- 13:05S1: been cooking up a feud with him for a while,
- 13:07S1: and it really reignited this week.
- 13:08S3: It did when he produced from a new list. I'm
- 13:13S3: I is being used very heavily inside the white House.
- 13:16S3: It was a list of 44 nations ranked from lowest
- 13:19S3: to highest interest rates, and for some reason the US
- 13:23S3: was compared with economic powerhouses such as Cape Verde, Libya,
- 13:29S3: the Congo and Algeria.
- 13:32S1: So basically, Donald Trump is very annoyed that the Federal
- 13:35S1: Reserve and Jerome Powell in particular, are keeping interest rates
- 13:38S1: too high, in his opinion. What does Jerome Powell said
- 13:40S1: about this? Because he made some comments at a European
- 13:42S1: conference this week.
- 13:44S3: Yeah, he got a round of applause saying I'm just
- 13:46S3: focused on my job.
- 13:47S5: You get attacked by by the president a lot on
- 13:50S5: a personal basis. Does it make your job harder?
- 13:54S6: I'm very focused on just doing my job. I mean,
- 13:56S6: there are things that the things that matter are using
- 13:59S6: our tools to achieve the goals that Congress has given us.
- 14:02S6: Maximum employment and Employment price stability. Financial stability. And that's
- 14:06S6: that's what we focus on 100%.
- 14:12S3: Now to get a rousing applause from a bunch of
- 14:14S3: central bankers. That's a tough crowd, let me assure you.
- 14:18S3: These guys don't do comedy. And he made this other point,
- 14:21S3: which we haven't got onto, which is the big beautiful Bill,
- 14:24S3: which is this piece of legislation that will increase America's
- 14:29S3: debt by a touch over $3 trillion over the next decade,
- 14:34S3: when they're running 36 trillion in debt. They had another
- 14:37S3: budget deficit last month, just another $300 billion. And he
- 14:41S3: just pointed out the budgets. The budget is unsustainable in
- 14:44S3: its current path. So Jerome and Donald are unlikely to
- 14:49S3: be sitting around the dinner table anytime soon, having a
- 14:52S3: good time.
- 14:53S1: I mean, it's going to be interesting to see it
- 14:55S1: play out because Jerome Powell is obviously not planning on
- 14:57S1: going anywhere. He also said that they're sort of they're
- 15:00S1: on pause a little bit because they don't know what
- 15:02S1: the impact of all the tariffs is going to be
- 15:04S1: further down the track. So they're not making any false
- 15:07S1: or sudden moves before then. And speaking of tariffs, I
- 15:10S1: just want you to bring us up to speed with
- 15:12S1: the US tariffs and their impact on our economy, because
- 15:15S1: I think a lot of people will have gotten confused
- 15:17S1: or lost track. Obviously next Tuesday is 90 days since
- 15:21S1: Liberation Day, when Trump announced all his sweeping tariffs on
- 15:24S1: US trading partners, including Australia. And then he placed a
- 15:27S1: 90 day pause on some of them. Where are we
- 15:30S1: up to in terms of the tariffs that are in
- 15:31S1: play on Australia now?
- 15:32S3: Right. There's a 10% tariff if you go into the
- 15:34S3: US at the moment. It is really that simple.
- 15:37S1: And then that's a baseline.
- 15:39S3: That's the baseline. And then there's all which there are
- 15:42S3: all these other higher tariffs like we've discussed what the
- 15:47S3: craziness around say China for instance. Like it ended up
- 15:50S3: at 100 and I lost track of once we got
- 15:52S3: into the hundreds somewhere. Yeah. But there's also say the
- 15:54S3: tariffs on steel and aluminium. They are in place.
- 15:57S1: So these tariffs on Australian products all 10% at this point.
- 16:02S3: Which we're always at the base.
- 16:04S1: And that was the special deal that we kind of
- 16:06S1: got allegedly, that we only got we got the low,
- 16:08S1: the low tariff.
- 16:09S3: I wouldn't call it.
- 16:10S1: Special.
- 16:11S3: Because there were a lot of other this is it
- 16:13S3: like say Britain, like people have talked about special Britain
- 16:16S3: got this great deal like they have a tariff deal.
- 16:18S3: But British imports to the exports of the United States
- 16:22S3: are still getting hit with a 10% tariff. And this comes,
- 16:24S3: I come back to the big beautiful bill because without
- 16:27S3: the tariffs he cannot pay for the huge tax cuts.
- 16:32S3: And the US. You can see it in their data
- 16:35S3: right now. The big lift that they're getting in tariff
- 16:38S3: revenue which was like 3/5 of nothing um at the
- 16:43S3: start of the year is now I think it's around 0.8%
- 16:47S3: of GDP. It's on its way to 1.2, which Trump
- 16:50S3: desperately needs. And this has been his whole argument. We
- 16:53S3: will bring in tariffs to pay for tax cuts. He's
- 16:56S3: doing a tax switch. That is what he's doing. So
- 16:58S3: he's got to do it.
- 16:59S1: Yeah. Doesn't that prove that he's right I mean he's
- 17:02S1: bringing in a source of revenue for the United States.
- 17:05S1: And he's using it for the United, the people of
- 17:07S1: the United States, giving it back to them.
- 17:09S3: I'm glad you asked, Jackie. I'm glad you asked. One
- 17:12S3: is he's like, say that he's not raising enough. That's
- 17:16S3: so as to.
- 17:17S1: Pay for his tax cuts on on.
- 17:18S3: Going. So he's part of the big beautiful bill. They
- 17:21S3: actually have had to increase the US debt limit by
- 17:25S3: $5 trillion. So if you actually believe we're going to
- 17:28S3: offset everything, you don't need to increase the debt limit
- 17:32S3: because it's a concession that we're not going to raise
- 17:35S3: enough money. The other issue, of course, is right. Say
- 17:38S3: high powered, high paid Jack Maley living living there in Manhattan.
- 17:42S3: She gets a tax cut on her high end purchases.
- 17:46S3: But look, you're a you're a woman of fashion. You'd
- 17:48S3: be buying American made, like, high end quality goods.
- 17:53S1: Bit of bit of, um, American, American sport luxury kind
- 17:56S1: of stuff.
- 17:56S3: I think I think you'd be all over that. That's
- 17:59S3: not getting hit with a tariff. However, if I'm living out,
- 18:03S3: I don't know, in, uh, the back. The back hills
- 18:06S3: of Queens and I'm on the average wage is around
- 18:10S3: 45 40,000 US. I need cheap Chinese goods so I
- 18:17S3: can clothe myself. Oh, they've gone up. So the tax
- 18:20S3: which is effect is pushing up inflation on lower paid
- 18:26S3: and probably helping those at the at the higher end
- 18:29S3: who've also got these big tax cuts. It's a so
- 18:32S3: it's really interesting in in terms of what's going on
- 18:35S3: in that tax switch itself.
- 18:37S1: Okay. Just quickly the tariffs on Australian goods. So it
- 18:40S1: mostly hits I think beef steel and aluminium in terms
- 18:43S1: of our industries. Has it made much of an impact
- 18:45S1: on the Australian economy.
- 18:47S3: None.
- 18:48S1: Okay.
- 18:48S3: And it's actually not not none. Well the beef hasn't
- 18:51S3: because one and this is goes back to Jerome Powell
- 18:54S3: why he's worried about what's going on. Because the American
- 18:57S3: economy people are still buying Australian beef. The 10% tariff
- 19:03S3: was not going to have much of an effect because
- 19:05S3: there's not enough cows in the United States. They need
- 19:07S3: they need Australian cows.
- 19:09S1: Yep.
- 19:10S3: The steel and aluminium you can see, it's like the
- 19:14S3: inflation bubble that's starting to occur there is coming through.
- 19:19S3: We can see it in the American economy. The economy
- 19:21S3: American economy contracted in the first three months of the year.
- 19:24S3: Canada has gone has in April went backwards its economy
- 19:29S3: because it's so intertwined with the United States. These and
- 19:33S3: we actually saw some job figures earlier this week where
- 19:35S3: there's people are the jobs market is starting to soften.
- 19:38S3: So we may be starting to see the macro impact
- 19:41S3: on the US economy more than us on the American
- 19:45S3: economy because of what's going on with the tax switch.
- 19:50S3: And this is why this is why he's talking to
- 19:52S3: Jerome Powell saying, oh, please cut interest rates. Because what
- 19:57S3: Donald Trump has done is causing.
- 19:58S1: My immediate problem. Yeah. Yeah I find it absolutely fascinating.
- 20:02S1: And you know, we're all so, so entangled with the
- 20:06S1: United States, economically and otherwise, that we've got to keep
- 20:08S1: an eye on it. Shane will have you back very soon,
- 20:10S1: I'm sure. And, Liz, thank you so much for being on.
- 20:13S1: It was such a pleasure. I hope this is the
- 20:15S1: beginning of a beautiful friendship, and we'll have you on
- 20:17S1: many more times. I know she's she's great. Thanks, guys.
- 20:21S1: We'll see you soon.
- 20:21S2: Thanks very much.
- 20:26S1: Today's episode was produced by Kai Wong. Our executive producer
- 20:30S1: is Tammy Mills, and Tom McKendrick is our head of audio.
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- 20:50S1: subscribe to us by visiting The Age or smh.com.au. I'm
- 20:57S1: Jacqueline Maley, thank you for listening.