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Solicitor general says Dutton likely to be eligible but 'some risk' high court would disagree – politics live | Solicitor general says Dutton likely to be eligible but 'some risk' high court would disagree – politics live |
(35 minutes later) | |
We’ve heard throughout the week of some of the standover tactics used in this leadership spill. Politics is a bruising game, there’s no doubt. But the level of bullying and intimidation has prompted many, including Liberal senator Linda Reynolds, to decry the current state of their party. | |
Liberal MP Fiona Scott has just appeared on Sky News. She says Liberal MPs have had their pre-selections threatened unless they switch to the Dutton camp. Extraordinary. | |
I’ve had a couple of people having their pre-selections challenged against them. In relation to comments even [Queensland Liberal MP] Gary Hargrave made not too long ago, where he’s saying well if Peter Dutton doesn’t get up, the civil war will continue, we will just keep marching through, that’s not uniting the party. | |
A couple of people that I’ve spoken to across the various camps hate that rhetoric. And at the end of the day they’re sitting there saying ‘well I’m going to lose my seat anyway, I’m just going to go with my heart’.” | |
Our reporter Gareth Hutchens has just told us the government whip, Nola Marino, is back in the PM’s office, having just left his office. Trying times for live bloggers, let me tell you. | |
While the Morrison camp is sounding upbeat this morning, Dutton HQ is keeping calm, and carrying on. “We’re confident,” on key person told me a minute ago. | |
There are reports the petition has gone to the whip’s office. The whip’s office are not confirming that yet, but it’s a formality in any case. I can’t see this meeting not going ahead. | |
Our reporter Gareth Hutchens is down in the ministerial wing of Parliament House. He’s just told me the chief government whip, Nola Marino, just left the PM’s office. You’ll remember that Marino is responsible for organising this meeting and will receive the petition, when it’s ready with 43 signatures. | |
Let’s just stop for a moment, in this madness, to consider what is currently happening in Australian politics. We’re about an hour away from a party room meeting that will decide the next leader of our country. And one of the leading candidates is trying to prove he has been eligible to sit in parliament for the better part of a decade. | |
There are truly no words. | |
I’m just going to leave this link here. Click it if it all gets too much. | |
Peter Dutton has just issued a statement. He thinks the solicitor general’s advice puts him in the clear. Dutton says it puts to rest the “false, unsubstantiated and malicious” claims about his eligibility. | |
He also refers to his own advice, which he’s previously released. | |
Today I received advice from the solicitor general that in his view I am capable of sitting as a member of the House of Representatives. | |
This confirms the legal advice which I received from the former solicitor general David Bennett AC QC yesterday and the advice I received from Guy Reynolds SC on 4 December 2017 and 23 August 2018. | |
David Bennett AC QC, who served 10 years as commonwealth solicitor general, was recently successful in the high court in Re Canavan and provided advice to Malcolm Turnbull on the eligibility of Justine Keay, Susan Lamb and Rebekha Sharkie, later confirmed by the high court. | |
The consistent and strong advice which I have received puts to rest the false, unsubstantiated and malicious claims regarding my eligibility to sit as a member of parliament. | |
Labor is, as you’d imagine, less than convinced by the solicitor general’s advice about Dutton’s eligibility. Anthony Albanese says: | |
This guy thinks that’s an acceptable level of assurance that he even has a right to sit in the parliament, and he wants to be the prime minister of the nation. It’s extraordinary. | |
Down in the bunker, the feeling now is this is a two-horse race, and numbers are tight as a fish’s you-know-what. Peter Dutton and Scott Morrison are neck and neck according to people counting. Julie Bishop, according to these accounts, doesn’t have enough primary votes to survive the first ballot. | |
A senior government figure told me a couple of minutes ago that Morrison has pulled ahead, but this version of events is more declarative than other versions I’ve had in the last 10 minutes. | |
People in the Morrison camp are also saying the former communications minister Mitch Fifield (who resigned his cabinet position yesterday) has come across from Dutton. I don’t have primary confirmation from Fifield, I’m seeking that, but I’m told this by people I trust. | |
ALL information needs to be treated with caution over the next couple of hours, because powerbrokers sprinkle it out to journalists doing live coverage to try and influence the votes of the undecideds. | |
They play with the basic herd instinct of politics: the objective is to trigger stampedes of various types. | |
But as best I know, this is the current outlook. | |
A fresh ReachTel poll of 867 voters in Peter Dutton’s seat of Dickson show even they don’t support his push against Malcolm Turnbull. | |
The poll found 52.5% oppose Dutton attempting to replace Turnbull, of those 38.9% strongly oppose it and 13.6% oppose it. | |
On the other hand, 37.6% support Dutton attempting to replace Turnbull, of those 29.8% strongly support it and 7.8% support it. | |
It’s important to note that it’s possible some of those who don’t support the push do prefer Dutton to Turnbull. A sensible Liberal voter might recognise that the week’s events destabilise the Liberal Party and make Labor more likely to win and Bill Shorten to become prime minister. | |
That could weigh Dutton’s numbers down, even if they wanted him to be PM. | |
Australian shares have opened stronger this morning with the ASX200 benchmark index up 17 points or 0.3% to 6,261 points. | |
But the political situation is being reflected more in the fall in the Aussie dollar, known as “AUD” in trading circles. It has dropped almost 1% in the past 24 hours to US72.46c with some traders thinking it could drop again if the Liberal party can’t agree on a new leader. On the other hand, a clear win for one candidate could easily send the dollar soaring. | |
#audusd $AUDUSD still plenty of room to move in either direction inside the channel: #LibSpill3 #auspol #ausbiz pic.twitter.com/cSzI1wniEh | |
Investors will also now be looking at how the turmoil could play out in the next few months and whether any new government – be it Coalition or even Labor if a general election is needed – will be able to function properly. | |
Chris Weston of IG Markets in Melbourne says: | |
The news flow coming from Canberra is keeping traders away from the AUD ... The news flow will continue to roll in today with another leadership challenge likely to be called. Betting markets still have Labor firmly as taking the lower house, but the issue of how policy is passed through the Senate suggests the passing of any future legislation could be a real issue, similar in many ways to that of the US after the mid-terms. This has to be an AUD negative, as the ability for Labor to address the deficit and raise taxes by A$223bn over 10 years will diminish. The views around Australia’s AAA-credit rating from the likes of S&P and Moody’s in the wake of the election is going to be a market mover. | |
If you haven’t had the chance, take the time to read this incisive account of the Liberal party’s leadership wrangling from our political editor, Katharine Murphy. | |
Here’s a taste: | |
After the prime minister refused to accept the resignations of the ministers who had lined up behind Peter Dutton in Tuesday’s snap leadership ballot, the government man noted ruefully: | |
“Malcolm has always coddled his enemies and not the people who save his arse. | |
“It’s been olive branch after olive branch. Eventually they will shove that olive branch up his arse.” | |
As premonitions go, it was apposite. That is precisely what happened, and then some. | |
By Thursday, the government had collapsed, and the Australian parliament was in the throes of a meltdown unparalleled even by the standards of the past decade, when chaos established itself as the new normal of politics. | |
When olive branches end in scorched earth. Turnbull shows no mercy as warring Liberals tear out the party's heart and soul https://t.co/DSSyIxRTzF #auspol | |
Andy Vesey, the chief executive of AGL Energy, is stepping down. | Andy Vesey, the chief executive of AGL Energy, is stepping down. |
AGL told the stock exchange this morning that Vesey was no longer a member of the board. | AGL told the stock exchange this morning that Vesey was no longer a member of the board. |
Just two weeks ago, as rumours swirled about Vesey’s tenure, he declared he had “no intentions of going anywhere.” | |
But now AGL has replaced Vesey with an interim CEO “effective today.” | But now AGL has replaced Vesey with an interim CEO “effective today.” |
To ensure a smooth transition, he will remain employed by AGL in an “advisory capacity” to the board until 31 December. | To ensure a smooth transition, he will remain employed by AGL in an “advisory capacity” to the board until 31 December. |
Brett Redman, AGL’s chief financial officer, has been appointed interim CEO, and while Redman performs the role, his fixed remuneration will be $1.05m a year, and he will get an additional $100,000 for each month pro-rated for any part-month. | |
Vesey had been head of AGL for almost four years, during one of the most tumultuous periods in Australia’s energy policy history. | Vesey had been head of AGL for almost four years, during one of the most tumultuous periods in Australia’s energy policy history. |
He endured the ire of members of the federal Coalition, such as Tony Abbott, because he had insisted on closing AGL’s ageing Liddell power station. | He endured the ire of members of the federal Coalition, such as Tony Abbott, because he had insisted on closing AGL’s ageing Liddell power station. |
In May, he rejected a bid from Alinta to buy Liddell, and confirmed the power station would shut in 2022, saying Alinta’s offer was “not in the best interests of AGL or its shareholders”. | |
Tony Abbott then pounced on the decision, using his regular radio spot on 2GB to brand it as a “strike against the national interest in the same way a militant union might strike against the national interest”. | Tony Abbott then pounced on the decision, using his regular radio spot on 2GB to brand it as a “strike against the national interest in the same way a militant union might strike against the national interest”. |
Abbott then repeated his demand that the government compulsorily acquire Liddell. | Abbott then repeated his demand that the government compulsorily acquire Liddell. |
The former deputy prime minister and Nationals leader Barnaby Joyce also blasted AGL. “We need to grab AGL, cart them back in and say, ‘This is BS, you are taking us for a ride, you think we are fools and the Australian people are not, and they are not going to pay for your market manipulation, which is what is coming next’.” | |
Joyce has previously accused AGL of “shorting” the market by hanging on to Liddell rather than selling it to a competitor prepared to extend its operating life – a charge the company rejected. | Joyce has previously accused AGL of “shorting” the market by hanging on to Liddell rather than selling it to a competitor prepared to extend its operating life – a charge the company rejected. |
Liberal MP Warren Entsch has now signed the petition calling for a party room meeting, Guardian Australia understands. | Liberal MP Warren Entsch has now signed the petition calling for a party room meeting, Guardian Australia understands. |
You’ll remember he previously said he would provide the 43rd signature, if needed. | You’ll remember he previously said he would provide the 43rd signature, if needed. |
It looks a certainty now that this party room meeting will happen and a spill called. | It looks a certainty now that this party room meeting will happen and a spill called. |
John Alexander, a former tennis great and Liberal MP from NSW, made a similar point to Buchholz earlier. He was speaking to reporters outside parliament, and said the Liberals had not learned their lessons from the previous Abbott-Turnbull spill. | John Alexander, a former tennis great and Liberal MP from NSW, made a similar point to Buchholz earlier. He was speaking to reporters outside parliament, and said the Liberals had not learned their lessons from the previous Abbott-Turnbull spill. |
He says: | He says: |
We are now committing another act of self-harm, greater than the last. | We are now committing another act of self-harm, greater than the last. |
It’s often asked what did playing tennis have to do with politics? A good tennis player, when they lose or make mistakes, they learn from them and try not to do them again. So I can only hope that what we have endured in the last week, we learn this most bitter lesson. | It’s often asked what did playing tennis have to do with politics? A good tennis player, when they lose or make mistakes, they learn from them and try not to do them again. So I can only hope that what we have endured in the last week, we learn this most bitter lesson. |
Scott Buchholz, a Queensland Liberal MP and Turnbull backer, is speaking to reporters outside parliament. | Scott Buchholz, a Queensland Liberal MP and Turnbull backer, is speaking to reporters outside parliament. |
Buchholz has signed the petition for party room meeting. This just shows us, again, that MPs from all factions now want a party room meeting. It’s not just Dutton’s camp, although they began circulating the petition. | Buchholz has signed the petition for party room meeting. This just shows us, again, that MPs from all factions now want a party room meeting. It’s not just Dutton’s camp, although they began circulating the petition. |
This morning I signed a letter and I caveated the letter that I supported the office of the prime minister, not the original intent of the letter, which was to support a particular candidate. I do not. I supported the letter because it has morphed ... into a document to bring on a party room meeting so that this can be resolved. | This morning I signed a letter and I caveated the letter that I supported the office of the prime minister, not the original intent of the letter, which was to support a particular candidate. I do not. I supported the letter because it has morphed ... into a document to bring on a party room meeting so that this can be resolved. |
Buchholz, importantly, calls for mechanisms to be put in place to stop the kind of leadership challenges that have blighted Australian politics in the past decade. | Buchholz, importantly, calls for mechanisms to be put in place to stop the kind of leadership challenges that have blighted Australian politics in the past decade. |
He doesn’t detail how you would implement such a mechanism, which risks clashing with fundamental tenets of the Westminister system. | He doesn’t detail how you would implement such a mechanism, which risks clashing with fundamental tenets of the Westminister system. |
But he declares “our system is broken”. | But he declares “our system is broken”. |
We have just had it up to the back teeth with the revolving door prime ministership. If I had a wish list, I would wish for two things. One, that we put in mechanisms that prevent this from happening again in the future. And secondly, we look at how we can discourage people who join a political party and then the very day that they’re elected or the day after, they join another party. Cory Bernardi, Jacqui Lambie, Glenn Lazarus, and the half a dozen who have fled from One Nation. That must stop. Our system is broken and it is time for a review. | We have just had it up to the back teeth with the revolving door prime ministership. If I had a wish list, I would wish for two things. One, that we put in mechanisms that prevent this from happening again in the future. And secondly, we look at how we can discourage people who join a political party and then the very day that they’re elected or the day after, they join another party. Cory Bernardi, Jacqui Lambie, Glenn Lazarus, and the half a dozen who have fled from One Nation. That must stop. Our system is broken and it is time for a review. |
So that advice, in reality, has thrown more confusion into the mix. | So that advice, in reality, has thrown more confusion into the mix. |
Now, one of the leading constitutional experts in the country, George Williams, says the advice is “spot on”, and says only the high court can now resolve this question. Yikes. | Now, one of the leading constitutional experts in the country, George Williams, says the advice is “spot on”, and says only the high court can now resolve this question. Yikes. |
The SG’s advice is spot on. It is more likely that Peter Dutton is not disqualified, but this cannot be stated with certainty. As the SG says, there is a risk he is in breach of section 44. Only the High Court can resolve this cloud of doubt. | The SG’s advice is spot on. It is more likely that Peter Dutton is not disqualified, but this cannot be stated with certainty. As the SG says, there is a risk he is in breach of section 44. Only the High Court can resolve this cloud of doubt. |
The advice is equivocal, if nothing else. The solicitor general says he thinks “there to be some risk” that the high court could conclude there is conflict between Dutton’s duties as a parliamentarian and his personal interests. | The advice is equivocal, if nothing else. The solicitor general says he thinks “there to be some risk” that the high court could conclude there is conflict between Dutton’s duties as a parliamentarian and his personal interests. |
Are you scratching your head about all this? | Are you scratching your head about all this? |
Just to get back to the bare facts, Dutton is under a cloud because he owns, through a trust, a childcare company that has received millions in subsidies from the federal government. The constitution (s44(v)) bars MPs from holding a direct or indirect pecuniary interest in an agreement with the commonwealth. It’s a law designed, at its most basic level, designed to ensure parliamentarians act in the best interests of the people, and not their personal interest. | Just to get back to the bare facts, Dutton is under a cloud because he owns, through a trust, a childcare company that has received millions in subsidies from the federal government. The constitution (s44(v)) bars MPs from holding a direct or indirect pecuniary interest in an agreement with the commonwealth. It’s a law designed, at its most basic level, designed to ensure parliamentarians act in the best interests of the people, and not their personal interest. |
The advice continues. | The advice continues. |
Reading on from the paragraph in the last post. | Reading on from the paragraph in the last post. |
For those reasons I consider there to be some risk, particularly in light of the substantial size of the payments that appear to have been made by the commonwealth to RHT Investments, that the high court might conclude that there is a conflict between Mr Dutton’s duty as a parliamentarian and his personal interests.The court might consider those payments to have created the expectation of benefit to Mr Dutton, on the basis that they would contribute to the amount of surplus income available to be distributed to beneficiaries of the RHT Family Trust, and that Mr Dutton had an indirect pecuniary interest on that basis. However, while that risk cannot be entirely discounted, it would remain necessary for the court to identify an agreement in which Mr Dutton held that interest. I am unable to identify such an agreement. For that reason, I consider that the high court is more likely to conclude that the size of the payments made to RHT Investments is not relevant to the s44(v) analysis, because those payments were made pursuant to statutory entitlements of particular individuals who use child care services operated by RHT Investments. 11. Finally, I consider it unlikely that Mr Dutton is disqualified by reason of payments made to RHT Investments under the Inclusion Support Programme (ISP). | For those reasons I consider there to be some risk, particularly in light of the substantial size of the payments that appear to have been made by the commonwealth to RHT Investments, that the high court might conclude that there is a conflict between Mr Dutton’s duty as a parliamentarian and his personal interests.The court might consider those payments to have created the expectation of benefit to Mr Dutton, on the basis that they would contribute to the amount of surplus income available to be distributed to beneficiaries of the RHT Family Trust, and that Mr Dutton had an indirect pecuniary interest on that basis. However, while that risk cannot be entirely discounted, it would remain necessary for the court to identify an agreement in which Mr Dutton held that interest. I am unable to identify such an agreement. For that reason, I consider that the high court is more likely to conclude that the size of the payments made to RHT Investments is not relevant to the s44(v) analysis, because those payments were made pursuant to statutory entitlements of particular individuals who use child care services operated by RHT Investments. 11. Finally, I consider it unlikely that Mr Dutton is disqualified by reason of payments made to RHT Investments under the Inclusion Support Programme (ISP). |
Finally, I consider it unlikely that Mr Dutton is disqualified by reason of payments made to RHT Investments under the Inclusion Support Programme (ISP). | Finally, I consider it unlikely that Mr Dutton is disqualified by reason of payments made to RHT Investments under the Inclusion Support Programme (ISP). |
Then roll through to paragraph 69, and the SG says it’s “not possible to reach a definitive conclusion on that matter without more detailed factual information”. | Then roll through to paragraph 69, and the SG says it’s “not possible to reach a definitive conclusion on that matter without more detailed factual information”. |
Pity the poor, Stephen Donaghue, the commonwealth solicitor general, caught in the middle of this horrific dogfight.The SG has given a nuanced position on Peter Dutton’s eligibility. “On the facts set out below, in my opinion the better view is that Mr Dutton is not incapable of sitting as a member of the House of Representatives by reasons of s44(v) of the constitution”. | Pity the poor, Stephen Donaghue, the commonwealth solicitor general, caught in the middle of this horrific dogfight.The SG has given a nuanced position on Peter Dutton’s eligibility. “On the facts set out below, in my opinion the better view is that Mr Dutton is not incapable of sitting as a member of the House of Representatives by reasons of s44(v) of the constitution”. |
Then there’s more qualification. | Then there’s more qualification. |
While I consider the position summarised above to represent the better view, it is impossible to state the position with certainty. That is so for three reasons. First, the facts concerning Mr Dutton are unlike those that have previously been assessed against s44(v). Second, as I note below, there may be further facts of which I am presently unaware. Third, there is a significant division of opinion on the high court as to key questions concerning the legal operation of s44(v), which creates some difficulty in predicting the manner in which the court would analyse the facts. There is a possibility, consistently with the approach that the high court recently took in the context of s44(i) of the constitution, that the court might endeavour to create a clearer line in the interests of certainty, which might involve a broader reading of s44(v) than was reflected in some of the judgments in Re Day (No 2). | While I consider the position summarised above to represent the better view, it is impossible to state the position with certainty. That is so for three reasons. First, the facts concerning Mr Dutton are unlike those that have previously been assessed against s44(v). Second, as I note below, there may be further facts of which I am presently unaware. Third, there is a significant division of opinion on the high court as to key questions concerning the legal operation of s44(v), which creates some difficulty in predicting the manner in which the court would analyse the facts. There is a possibility, consistently with the approach that the high court recently took in the context of s44(i) of the constitution, that the court might endeavour to create a clearer line in the interests of certainty, which might involve a broader reading of s44(v) than was reflected in some of the judgments in Re Day (No 2). |