PM Transcripts

PRIME MINISTER 110/ 94
STATEMENT BY THE PRIME MINISTER, THE HON P J KEATING MP
MR MCLACHLAN AND ELDERS IXL
The dschslon of the Victorian Supreme Court to grant the Bank of New Zealand leave to
Issue claims against fo-mer Elders-AXL board members, Including Liberal frontbencher [ an
McLachlan, casts a cloud over Mr McLachlan's Shadow Ministry role as a former direct&-
of thtiicompany.
Mr McLachlan likes to portray himself on television and In the print media-as someone
who resigned from the board, after ten years, because the situation had become
overheated. But as yesterdays decision confirms, he was a director years earlier when
Elders bought 20 per cant of BHP as part of that company's attempt to block the late
Robert Holmes a Courts takeover bid.
As the public now knows, the tactic apparently was that Elders would hold about 20 per
cent of [ 3HP, denying Mr Holmes a Court any chance of compulsory acquisition above
ninety per cent of the stock, and in return OHl-would protect the Elders Board by holding a
large block of Elders stock stock later sold by BHP to Harlin Pty Ltd.
Mr McLichlan might tell the public what contribution he made and how he voted on the
board on these matters whether he supported the move to buy stock in BHP, and if so,
why? Given his frontbench position in the Federal Opposition, he should tell the public if he had
any role in the Hawkins transactions, or if he had any knowledge of those transactions.
The Lealder of the Opposition should insist on knowing the full details of the McLachlan
involvemnent on the board of Elders IXL as it relates to these transactions.
As a board member of a major public company, his contribution on the board of Elders
affected many thousands of public shareholders.
If Mr McLachlan is not forthcoming about his role he should be stood down from the
Opposiiion frontbench until these matters are heard and until evidence of the discharge of
his fiduciary responsibilities confirms that he acted with propriety.
CANBERRA 13 DEC: EMBER, 1994