Opening Address by Counsel Assisting First Public Hearing 9 April 2014

Opening address by Counsel AssistingFirst Public Hearing9 April 2014

Commissioner,theAttorneyGeneralhasappointedmecounseltoassistthisRoyal Commission. MichaelElliottandFionaRoughleyhavealsobeenappointedcounselassisting.

Thetermsofreferencehavejust beenread.Theyfallintotwobroadcategories.

The first relatesto the operationand conduct ofwhat are defined as “relevant entities”.

Thesecondcategoryhasmoregeneralapplication.Itrelatesto variousdifferentformsofunlawful orimproperconductonthepartofunionsortheirofficers.

Iwill makesomefurtherobservationsconcerningeachofthesecategories.

Asto the first category,a “relevant entity”isanentityestablished byanemployee associationor

itsofficers.

Itisanentitythatisseparatefromtheemployeeassociationandwhichwasestablishedfor– or purportedlyfor– anindustrialpurposeorthewelfareofmembers.

Incommonparlance, these entitiesare called ‘slush funds’.There have beenwell-publicised reports,allegationsandclaimstotheeffectthatcertainunionofficialshavesetupsuchfunds, procuredmoneytobepaidintothem,andusedthemtopayforelectioneeringorotherpurposes. Variousquestionsarise.Arethereports,allegationsandclaimsaccurate?Ifso,whoisputting moneyintothesefunds,andwhy?Arethesefundsbeingoperatedinanopenandtransparent way?Doestheoperationofsucha fundinvolveanywrongdoing?

Thetermsofreferencerequireyou,Commissioner,todirectyourattentiontoanumberof questionsinrespectoftherelevantentities,including:

theirgovernancearrangements;

thecircumstancesinwhichfundshavebeensoughtfromthirdpartiesandpaid tothose entities;and

anyconductinrelationto thoseentitieswhichmayamounttoabreachofanylaw, regulationorprofessionalstandard.

Theexaminationofthosematterswill thenrequireyoutoconsiderissuessuchasthefinancial managementoftheentitiesandwhetherrelevantentitieshavebeenusedforanyformofunlawful purpose.

Thelegalstructureofsuchfundscouldbeinfinitelyvarious.Afundcouldbean incorporatedbody, suchasacompany.Itmightbeanorganisation,whichcouldincludeagroupofindividuals assembledinanunincorporatedassociation.Itmightbe nomorethanabankaccount.Indeedthe termsofreference saythat a fund might simplybe a “financial arrangement”.

It followsthatexaminingtheestablishmentandoperationofthesefundswill notbe straightforward.It will requireexhaustiveanalysisofaccountingandotherrecords,notjust ofthe fundsthemselvesbutofotherpersonsorentitieswithwhomthefundmayhavehaddealings.

Nohonestworkingmanor womanhasanythingto fearfromthisCommission.Nordoesany

honestunionofficial.

Atthesametime,thosewhoruncollectiveorganisationshaveparticularresponsibilities.Aunion officialholdsaspecialpositionoftrust.Theunionistheretoprotectitsmembersandtoadvance theirinterests.Unionmemberspaytheirmembershipdues.Theyexpecttheirofficialstoactwith honestyandprobity.Sodoesthebroadercommunity.

Thetermsofreferenceassumethatthemembers,whofundtheunionthroughtheirhardearned wages,areentitledto knowthatthosewhospendtheirmoneywill dosowiththeirinterestsat heart.

Thelawofthiscountryrecognisesthatanofficerofa companyowesarangeoflegal,equitable

and statutoryduties.Perhapsaunionofficial’sobligationsshouldbeevenmoreonerous.

Afterall,ashareholderinacompanylistedonastockexchangecanalwayssellhisorhershares andmoveon.Itisnotso easytoswitchunions.Also,alistedcompanyusuallyhaslargeor institutionalshareholders,whokeepclosewatchontheactivitiesoftheboard.Unionofficialsmay notbe underthisdegreeofscrutiny.

IftheallegationsthesubjectofthisCommissionprovetobecorrect,thecurrentlevelofscrutiny maybeinadequate.

Commissioner,thetermsofreferencedirectyourattentiontoquestionsofthiskind.Thetermsof referenceaskyoutoconsider,inrelationtorelevantentities,whetherpersonsrepresentedby employeeorganisationsaresufficientlyprotected,andwhethersuchpersonshavetheopportunity to holdofficersoftheassociationaccountableforanywrongdoing.

Speakingbroadly,thisisthefirstcategoryofissueraisedbythetermsofreference.

Turningtothesecondcategory,thetermsofreferencelookatwhetherpersonsassociatedwith unionshaveengagedinactivitieswhichcouldinvolvewrong-doingorcorruption.

Inatleasttwo notablerecentinstances,formerunionofficialshavebeenchargedwith,andfound guiltyof,variousoffencesassociatedwithcorruptactivities.Ido notproposetodescribethese instanceshere– theyare well known.

Ofcourse,the factthatonepersonhasbeenfoundguiltydoesnotprovewrong-doingbyanyone else.ThisCommissionwillcarryoutitsinvestigationsforitself.Itdoesnotcomeintothisinquiry withpreconceptions.Everyindividualandeverycasewill beassessedonitsmerits.Therulesof naturaljusticewill beapplied.

Also,ifit weretotranspirethataunionofficialhasreceivedcorruptlyasumofmoneyorbenefit, thatisnottheendofthe matter.Corruptreceiptimpliescorruptpayment.Someoneelsemust havebeeninvolved.ThisCommissionwill lookatbothsidesofthetransaction– slushfundsonly operateifthereareslushfundcontributors.

Theletterspatentrequestthatyoudeliveryourreportby31December2014.Thetimetableis tight.Thiswill imposeburdensonyouandyourstaff.Itwill alsoimposeburdensonothers.For example,ifyouissuenoticestoproduceorsummonses,therecipientsofthosenoticesor summonsescanexpectthattheCommissionwill treatdeadlinesstrictly.

Youhavealreadycauseda numberofnoticestoproducetobeserved.Iampleasedtosaythat somerecipientsofthosenoticeshaveapproachedtheCommissiontodiscussconcernstheyhad concerningmatterssuchasthetimeforproduction.Somecompromiseshavebeenmadeand negotiationsareintrainwithaviewtosensiblearrangementsbeingreached.

FurtherinformationabouttheCommissioncanbeobtainedfromitswebsite, different waystheCommissioncanbe contacted.The transcript oftoday’sproceedings,andofall publichearings,will bepublishedonthewebsite.Sowill informationaboutthedates,timesand locationsofpublichearings.

The websitealsoincludesimportantinformationonhowtoobtainauthorisationtoappear,and whatconditionsmaybeimposedonsuchauthorisation.Theformforsubmittingsuchapplications isonthewebsite.

ARoyal Commissionisnotadversariallitigation.Itisaninquiry.Thelinesofinquirymaychange andevolveovertime.OnbehalfoftheCommission,Iencourageanyonewithinformationwhich maybeofinteresttotheCommissiontomakecontact.Inparticular,Iencourageunionmembers tocontacttheCommissioniftheyhaverelevantinformation.To unionmembersIsaythis: you

don’t help anyone bykeeping wrongfulconductunderwraps.Onlybyexposinganddealingwith suchconductcanhonestunionistsbesurethatinthefuturethe unionwill lookafterthem.This Commissionisanopportunityforyoutocreateabetterunionforfuturemembers.Anysuch approachcanbetreatedconfidentially.Thecontactdetailsareonthewebsitebut,just incase,the hotlinenumbertoringis:1800221245.

Commissioner,youdo notcometo yourtaskalone.Youhavestafftoassistyou,includingyour ChiefExecutiveOfficer,yourCommanderofInvestigationsandyoursolicitors,bothexternaland withintheCommission.Manyotherdedicatedstaffmemberswill alsohelpyougetthejob done. Also,arangeofCommonwealthandStateagencies–includingtheAustralianCrimeCommission, theAustralianFederalPoliceandtheStatePoliceForces– havegenerouslyofferedtoassistthe Commissioninvariousways.

Lastly,onbehalfoftheCommissionIthanktheRoyalCommissionintoInstitutionalResponsesto Child SexualAbusefortheuseofa hearingroomtoday,andforotherassistancewhichit has providedtothisCommissionduringitsestablishmentphase.