FOR MEDIA SUNDAY, 12 SEPTEMBER 1982
ELECTORATE TALK
It was my Government, with the previous Liberal Government
in Victoria, which set up the Costigan Royal Commission, and
the Commission's findings have validated that decision
a thousand fold. We set the Commission up because we were
determined to get to the bottom of the stories about evil and
crime associated with the notorious Painters and Dockers' Union,
and my Government is now totally determined to eradicate the
criminality and fraud that is exposed.
Australians everywhere are disturbed that corruption and
organised crime on such a scale exists in our community.
Eradicating it will in many cases call for new techniques,
drawing upon the computer applications Mr Costigan has pioneered,
and matching the sophistication of modern cheats and criminals.
The critics of this Royal Commmission and there were some have
been silenced. Mr Cain, for example, can no longer label the
Commission a " political stunt" as he did earlier this year,
and I only hope his new-found enthusiasm for the Commission's
work will be matched by effective practical action under state
law, and in relation to the Painters and Dockers' affiliation
with the Labor Party.
My Government is taking immediate action on several fronts, legislation
enablinq the appointment of a special prosecutor for bottom of the harbour
tax evasion schemes was passed through the House of Representatives
last week. and a task force of police, taxation officers and
lawfyers to assist the special prosecutor is already established.
Further task forces will be established as required for specific
areas of criminal activity. The inaction within the Deputy
Crown Solicitor's Perth Of fice on prosecutions has led to the
suspension and charging of three officers. Mr Tony Smith has
been nominated by the President of the Law Council of Australia
to conduct an examination of the Perth Office and ' the staffing
needs of the Crown Solicitor's Division are being investigated.
At the Government's request, Mr Costigan consented to the
publication of an important chapter of the confidential part of
the Report. That chapter was immediately made public last
week, and it shows the extent of organised crime in Australia.
Mr Costigan has asked that the rest of the Report should not
be made public at this stage, partly because doing so could damage
the Commission's current investigations, and partly because
publication now would make it impossible for people who will
be charged with of fences to get a fair trial. / 2
-2
My Government accepts Mr Costigan's requests unreservedly.
Anyone who believes in fairness, and in the importance of
Mr Costigan's work, would obviously accept the need for
confidentiality at this stage. This is why I have condemned
absolutely the deliberate way Mr Hayden has been dropping hints
about who is named in the reports, and smearing groups within
the Australian community. Because of Mr Hayden's tactic, the
entire Australian community has a right to know that Mr Costigan
wrote to me about the speculation on the confidential parts
of his reports and said: " It would be quite inaccurate to draw
any specific inference as to what names might appear in those
volumes, . or whether they come from any particular state or
territory or country or have associations with any political
organisation or group".
I also want to say something about the recovery of unpaid
taxation, because Mr Costigan's findings have highlighted this
issue, although the Government had already announced action before the
budget, and before the Report was published.-The tax avoiCdani industry has been
effectively attacked by earlier legislation, we will continue to
be vigilant and act against new schemes, and the main question
now is to recoup taxes avoided by those who have used the
bottom of the harbour schemes. The Government will legislate
to recover taxes that were unpaid as a result of bottom of the
harbour schemes. It is important for people to know how
bottom of the harbour schemes worked, because I do not believe
anyone could have taken part without knowing they were wrong.
Let me try and explain it in these terms. If there is a company
with say $ 100 worth of assets, plus $ 10 tax due to be paid
to the Commonwealth, and somebody comed along and says, look,
" I can buy that company off you, all you will have to do is
give me the company papers, and then you will be able to keep
for yourselves the $ 100 for the assets and the $ 10 of tax,
you won't have to pay the tax, all you will have to do is
pay me a commission of $ 2 for the deal." The promotor, having
got his commission, then dumped the papers inthe bottom of the
har~ bour. But how could the seller have failed t~ o know he
was doing something wrong by getting out of the tax liability
in this way? The Government had decided to legislate to recover
this unpaid tax because of our determination that people should
not escape or avoid their fAir share of taxes.
I know some people have concerns about retrospectivity, no
Liberal likes retrospectivity. But I believe it is even more
important to demonstrate our total commitment to a tax system
which operates in a fair way, because any loss of confidence
by average Australians in the fairness of the system would
undermine the way of life we believe in.
The principle of fairness is absolutely fundamental for
Liberals, it is more fundamental than any other principle,
certainly more fundamental than any element of retrospectivity
in the proposed legislation. The Liberal Party
was founded to govern fairly in the interests of all
Australians, and fairness is a principle basic to Liberals
and support for this principle is absolutely fundamental to
Liberal thinking, and I would not want to lead or be part of
any party which failed to stand by that principle.
3
There is another issue Mr Costigan raised, the need to " have
available a prosecuting arm charaed with the responsibility
of immediately attending to any prosecutions that may arise
in the course of the Commission" ( 10.59). The Government
has already established a special prosecutor and this goes
a long way to satisfying Mr Costigan's aims. However, in the
long term, it is fundamental that there be established a body
which both has an investigative and prosecuting role and it
is with this objective that my Government has proposed the
establishment of a National Crimes Commission. Only a
body invested with such powers will have the capacity to deal
effectively with modern crime.
Mr Costigan's findings clearly emphasise that traditional
law enforcement methods have failed.. This is most evident
in New South Wales as reports of Royal Commissions and task
forces over recent years have demonstrated.... I believe that
the seriousness of Mr Costigan's findings, the apparent depth
and strength of organised crime in Australia, demonstrates the
need for a properly structured National Crimes Commission,
and I very much hope that the states will be willing to join
with the Commonwealth in this. Australia needs law enforcement
agencies which are adequate to understand and root out modern
crime, and my Government is determined to do everything in
its power to achieve these objectives. The positive action
we are taking and proposing all leads in this direction, and it
is all totally consistent with Mr Costigan's proposals.
My Government's record on the Costigan findings is one of
positive action and resolve. It stands in stark contrast
with the barren and baseless politicking of our opponents.
Mr Hayden is to be congratulated on his move to disaffiliate
the Painters and Dockers' Union from the ALP. But Parliament
will be degraded if Mr Hayden continues to heap blame on
categories of people who are not even named in the Report.
I will condemn that tactic whether it is practised by Mr Hayden,
or by any member of any party, including my own.
So far as my Government is concerned, we will be getting on
with the job, taking positive action in the light of the
Commission's findings, and along the lines it soundly proposes.