A
FOR PRESS 16 DECEMBER 1977
I have considered the position of the Deputy Leader of the
Liberal Party, the Right Honourable Phillip Lynch, in the
light of his disclosure to me of his family's financial interests
and in particular, their interests in commercial arrangements
entered into in September 1973 whilst he was in Opposition, and
concluded in 1976 after he became Treasurer, concerning land at
Balnarring in Victoria.
I have also taken independent advice from Mr Stephen Charles, Q
of the Melbourne Bar, who advised me that on the facts available
to him from documents supplied and from information made available
from Irish, Young and'Outhwaite, and Mallesons, that nothing
has been done by Mr Lynch or his family which was illegal,
commercially improper or represented a conflict between his or
their private interests and Mr Lynch's public duties as a
Minister of the Crown, and that the arrangements were normal
commercial arrangements.
Mr Charles has advised me that in his opinion Mr Lynch did comply
with the directive in my letter to all Ministers of 13 January, 1976,
requiring disclosure of private interests.
I am delighted that Mr Charles has advised as he has. I happily
accepted that advice. I now regard the matter as closed, and I
see no reason why Mr Lynch should not be re-elected as Deputy
Leader of. the Liberal Party.
I very greatly regret the difficulty and anguish that
Phillip Lynch and his family have experienced over recent weeks.
ilook forward to working with him in the coming period.
These events have shown that a Prime Minister is placed in a most
difficult position when he is called upon to pass judgement on
colleagues with whom he has worked closely, particularly as
the Prime Minister must act as judge and jury when allegations of
impropriety are raised. ./ 2
A far more satisfactory procedure must be found to resolve
these situations which can have such an impact on an individual's
career and on the life of his family.
A whole new approach is required. I do not regard the Report of
the Parliamentary Committee on Pecuniary Interests as putting
forward adequate solutions. In my view, a statement of pecuniary
interests to the Parliament does not provide an adequate procedure.
Because of that view, I intend to appoint a judge or Queen's Counsel,
to be assisted by a businessman and an accountant, who will need
to be familiar with modern commercial practice and procedures,
to make recommendations to the Government on what interests should
be disclosed.
They will also be asked to recommend what procedures should be
followed to determine whether there has been any breach of the
high standards which are properly required of those in public office.
The-Committee. will also be asked to recommend the method which
should be used to determine whether there has been a breach.-
. They will be asked to examine whether or not a register under
judicial supervision should be instituted and maintained in such
a way, which, in the event of allegations of impropriety or on the
judge's own ini-tiative, will allow for expeditious and proper
judicial examination of such allegations.
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