Western Australia

By Black, David; Phillips, Harry C. J. | The Australian Journal of Politics and History, June 2001 | Go to article overview
Save to active project

Western Australia


Black, David, Phillips, Harry C. J., The Australian Journal of Politics and History


July to December 2000

During the second half of 2000 there was much speculation as to the likely date of the next election. Eventually Premier Court ruled out a pre-Christmas poll after the so-called Finance Brokers' Scandal continued to draw adverse publicity. Difficulties in the major portfolio areas of health, education and transport also bedevilled the government while several ministers came under fire for actions that were alleged to have breached expected standards of ministerial conduct.

The Finance Brokers' Scandal

On 5 September the three-member inquiry team under the Public Sector Management Act chaired by retired Judge Ivan Gunning tabled its first report containing criticisms of the Finance Supervisory Board and public servants. Opposition Leader Geoff Gallop immediately called for the dismissal of Doug Shave as Fair Trading Minister but Premier Court, despite indicating he would dismiss Shave if it were shown he had not handled his portfolio responsibly, stood by his Minister. The Premier also supported Police Minister Kevin Prince, whose earlier business partnership with one of the "dodgy brokers" had only come to light when the scandal erupted. Investor advocate, Denise Brailey, who had gained prominence with her decision to stand against Minister Shave in his Alfred Cove seat, slammed the Gunning report as a waste of money. In response, Premier Court indicated his government would establish a panel to implement the twenty-eight recommendations including proposals for improved registration and licensing procedures with bankrupts and for people convicted of personal offences to be barred from the industry. Brokers, too, were to be personally liable for losses caused by false information while independent property valuations and the credit history of borrowers were to be provided to lenders. In addition, the roles of Ministry staff and the Supervisory Board members were to be more clearly defined.

The second Gunning Report was tabled in mid December after Parliament had risen. Cabinet immediately agreed "in principle" to the 52 recommendations. These included the establishment of an independent disciplinary tribunal with judicial powers within the Justice Ministry to replace the Fair Trading Ministry's industry watchdog boards, and the scrapping of seven licensing boards and the Building Disputes Committee in favour of one single authority to license finance brokers, builders, car dealers, land valuers, and real estate and settlement agents. On this occasion the Gunning Committee made no further reference to serious or systemic problems in the industries under review. With reference to both reports critics argued that the recommendations were about future reforms rather than gaining redress for those who had been the victims of past practices and it was also questioned whether removing some functions from the Fair Training Ministry might leave consumer protection impotent.

Meanwhile, the members of the Legislative Council Select Committee into the Finance Broking Industry headed by Labor MLC Ken Travers in its final report called unanimously for either a Royal Commission or for a re-appointed Gunning inquiry to probe the industry's continuing and unresolved problems. However, Shave rejected the need for a further full scale inquiry and again denied any responsibility for investors' losses. The Travers Committee had contended that lawyers, auditors, borrowers and valuers, not just finance brokers, had been the key to many retirees losing their life's savings. It also concluded that the Finance Supervisor's Advisory Board was ineffective in administering the Act, and that the Ministry of Fair Trading had failed to conduct a number of investigations with "due diligence" and had responded defensively and inadequately, particularly after the industry's problems had become public in 1998. Another recommendation was that the government provide financial assistance to all investors involved in test cases who were seeking to determine legal issues surrounding investors' entitlements while seeking to reach agreement with investors over compensation and assistance without expensive court action.

The rest of this article is only available to active members of Questia

Sign up now for a free, 1-day trial and receive full access to:

  • Questia's entire collection
  • Automatic bibliography creation
  • More helpful research tools like notes, citations, and highlights
  • Ad-free environment

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

Western Australia
Settings

Settings

Typeface
Text size Smaller Larger
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

While we understand printed pages are helpful to our users, this limitation is necessary to help protect our publishers' copyrighted material and prevent its unlawful distribution. We are sorry for any inconvenience.
Full screen

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited passage

Welcome to the new Questia Reader

The Questia Reader has been updated to provide you with an even better online reading experience.  It is now 100% Responsive, which means you can read our books and articles on any sized device you wish.  All of your favorite tools like notes, highlights, and citations are still here, but the way you select text has been updated to be easier to use, especially on touchscreen devices.  Here's how:

1. Click or tap the first word you want to select.
2. Click or tap the last word you want to select.

OK, got it!

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.