Tue, 1st July 2008

Slow burn for PM and his Chief of Staff

Senator the Hon Michael Ronaldson
Shadow Special Minister of State

The publicity over the past week about the real or perceived conflict of interest of the Prime Minister’s Chief of Staff, David Epstein, in relation to his wife’s lobbying company Government Relations Australia (GRA) is the beginning of the end for the Prime Minister’s Chief of Staff according to Senator Michael Ronaldson, Shadow Special Minister of State.

“The openness and transparency of Prime Minister Rudd’s own office is again being called into question following today’s revelation in The Australian that GRA has up to 13 energy and resources companies which has a direct financial interest in the emissions trading scheme model that the Rudd Labor Government introduces.

“These energy sector companies have presumably engaged Ms Sandra Eccles of GRA to lobby her husband and other senior Rudd Government figures for an emissions trading scheme model that is favourable to their commercial interests.

“Kevin Rudd should not make the mistake of thinking this controversy will merely be a part of the 24 hour news cycle.

“This issue is going to be a slow burn for Kevin Rudd and David Epstein.

“Mr Rudd and Mr Epstein are hopelessly compromised. Mr Rudd has no option but to cut Mr Epstein loose.

“These are the ten questions Mr Rudd needs to answer:

1. Kevin Rudd’s spokesman is quoted today as saying that the Prime Minister’s office has ‘a robust framework to manage actual or perceived conflicts of interest’. What are the exact processes and details, step by step, of this ‘robust framework’? Mr Rudd should release all the details of this ‘robust framework’ to the media in the interests of transparency and accountability as the process is not a matter that he can reasonably claim is protected by confidentiality.

2. What happens when Mr Epstein takes an after hours work call at home or a call in his car while he and Ms Eccles are travelling? What steps does Mr Epstein take to avoid perceived or real conflicts of interest?

3. For that matter, what happens when Ms Eccles takes commercially sensitive phone calls from any one of her 69 clients after hours?

4. Which of GRA’s 69 current clients were previously direct clients of Mr Epstein’s?

5. What other clients does GRA have, who are not currently listed on the Lobbyist Register (because active representations are not currently being made), and what procedures are in place regarding decisions affecting those clients and their industries?

6. While the Prime Minister’s office claims it has a ‘robust framework’ in place in respect of GRA clients, what process is in place in respect to decisions relating to, and meetings with, competitors to GRA’s clients?

7. Does Mr Epstein receive any work related faxes at home which might be commercially sensitive or confidential?

8. The Lobbyist Register only tells half the story. What success fees are payable to GRA if the Rudd Labor Government introduces a particular Emissions Trading Scheme model that is favourable to some of their energy sector clients?

9. What procedures are in place to ensure that Mr Epstein does not personally benefit from success fees paid by GRA’s clients? Has Ms Eccles ruled out any remuneration based on the success fees?

10. Does Mr Epstein take any work home with him that includes commercially sensitive or Cabinet-in-Confidence documents?