Monthly Archives: June 2024

Opinion Piece – Truth of Labor gaslighting finally revealed – The West Australian

When reports emerged at the beginning of last year suggesting the Perth Mint was plagued by significant compliance failures, WA Labor quickly attempted to hose down any concerns. Then minister for mines and petroleum Bill Johnson called the reports a “beat-up,” while former Premier Mark McGowan famously described it as a “storm in a f…… tea cup.” For those who don’t remember, the allegations levelled at the Perth Mint were no laughing matter and they still aren’t. They centred on suspect banks based in international tax havens with substantial deposits at the Perth Mint, gold sold at sub-par qualities, and unreported transactions via its GoldPass app. Consequently, concerns arose that the Perth Mint may be in breach of Commonwealth anti-money laundering legislation — the same type of legislation that saw Westpac fined more than $1 billion in 2020. Except, if anything, the stakes were even higher at the Perth Mint; as a government-owned enterprise, any fines would ultimately be paid by WA taxpayers. But, from the outset, WA Labor sought to gaslight the public over the seriousness of the issue. They didn’t only demean the media’s coverage, they also used their parliamentary majority to thwart any thorough inquiry into compliance concerns at the Perth Mint. It was for this reason that, as a Federal Senator for WA, I initiated a multi-partisan Senate inquiry into this. I believed it was critical for WA senators to do the work, on behalf of the public, which the State Government refused to do. The inquiry’s final report, published on Friday, comes after a year of public hearings, and several “in camera” sessions where witnesses presented more sensitive evidence behind closed doors. It offers a damning assessment of WA Labor and singles out Mr McGowan for ignoring no less than three requests to engage with the Inquiry. The report also sheds much-needed light on the conduct of past and present members of the Perth Mint board, who failed to adequately address compliance breaches despite commissioning four audits in the decade between 2010 and 2020. Probably the most worrying aspect covered by the report is its confirmation that the same fines issued to Westpac, and to a lesser extent Crown Casino, remain looming over the head of the Perth Mint and therefore the WA taxpayer. In August, Bill Johnson called the Inquiry a “political stunt” and “rubbish”. In November, financial intelligence watchdog AUSTRAC entered into an enforceable undertaking with the Perth Mint over concerns it was still failing to comply with Federal anti-money laundering legislation. Placing significant monitoring obligations on the Perth Mint, which faces serious consequences if it is breached, it was a powerful vote of no confidence in the institution’s regulatory standards. Given this development, and other matters that have come to light, I wonder how confident Mr Johnson is in those comments now? Despite his public dismissal of concerns around the Perth Mint, Mr McGowan must also have harboured anxieties over what was transpiring there, as he appointed Sam Walsh as chairman in 2019. The inquiry was told by Mr Walsh in February, viva voce, that he failed to familiarise himself with a single one of the Perth Mint’s major clients when he assumed control of the board, despite admitting that he had been appointed to address the organisation’s compliance shortcomings. Deflection was a disappointingly common theme throughout the Inquiry. Along with Mr Walsh, the Perth Mint’s head of audit, John O’Connor, maintained repeatedly that the internal audits were of a satisfactory standard. Mr O’Connor also told the inquiry that “management” was responsible for failing to comply with established and well-known anti-money laundering and CTF obligations. That view was categorically dismissed by the Australian National Audit Office, the Office of the Auditor General for WA, and AUSTRAC. All three organisations confirmed to the inquiry that responsibility for compliance lay squarely at the feet of the board. This why the report found it was of “critical importance” that the board now provide a clear public statement — one that outlines how the regulatory failures occurred, and the steps taken to ensure these issues do not arise again. All this places Mr McGowan and WA Labor in a position that demands a public explanation. As the minister responsible for the Perth Mint from 2018-2020, he should have been fully aware of the seriousness of what was occurring and the possible exposure of WA taxpayers to such an enormous fine. Or did he know of these serious compliance failures, yet decided to stonewall both WA and Federal parliaments for political motive? Either way, the public deserves an answer. Which is precisely why the report recommends the WA Government hold its own investigation into what happened at the Perth Mint — as it should have in the first place. It’s also recommended that it make clear to the WA Parliament exactly what financial liability taxpayers could face if the enforceable undertaking is not complied with. And that the 2020 internal audit report, a document West Australians must see if they are to fully understand what has happened here, be publicly released. There are those, including Labor senators on the inquiry, who want the report to be the end of this investigation. But it is only if the report’s recommendations are adopted in full, including the ongoing obligations on the WA Government and Perth Mint, that the Mint can fully restore its reputation as a commercial benchmark and cultural icon of our State — and WA taxpayers given the protection they deserve.

Media Release – Mandatory Grocery Code go slow continues, despite Labor’s noise

SENATOR DEAN SMITH SHADOW ASSISTANT MINISTER FOR COMPETITION, CHARITIES AND TREASURY SENATOR FOR WESTERN AUSTRALIA MEDIA RELEASE 24 June 2024 Mandatory Grocery Code go slow continues, despite Labor’s noise You’d be forgiven for thinking Labor had actually delivered something new in today’s Food and Grocery Code announcement. But, while confirmation a Mandatory Code will be adopted is a positive step against future anticompetitive supermarket behaviour, it should have been done months ago. Even at the time of the Emerson Reports’ heavily delayed release in June this year, none of its recommendations – including the Mandatory Food and Grocery Code – presented fresh solutions to pressing competition challenges in the sector. During these wasted months, with Labor choosing process over action, Australians have been left battling the Albanese Government’s dual cost of living and cost of doing business crises. The reality is that suppliers and consumers alike have been left exposed on Labor’s watch, and they will continue to be until the legislation required to give Code penalties full effect is passed. Disappointingly the Albanese Government has provided no timeline for when this will occur. Whatever Treasurer Jim Chalmers or Assistant Competition Minister Andrew Leigh might say, there is no certainty of when this component, which will be critical to the effectiveness of the Code, might actually be delivered. Until that happens, stakeholders from farmers to transport operators and, of course, millions of Australians at the check-out will remain on the hook – with no confidence about the ACCC’s capacity to protect their interests through the Code. Quotes attributable to Senator Dean Smith, Shadow Assistant Minister for Competition, Charities and Treasury: “Sadly, the bigger the announcement from Dr Chalmers and Dr Leigh, the less action we see. “Today’s announcement is a welcome one, but it’s the beginning, rather than the end, of a process that Australian suppliers and consumers have expected – and needed – for months.” “Labor is lagging hopelessly on competition reform, which has the power to transform the Australian economy, and households and businesses are paying a terrible price, including at the till. “Now today’s announcement has finally been made, I call on Labor to provide a clear legislative timeline for when the Mandatory Code will be fully operational – with the power to impose fines.” ENDS

Transcript – Interview with Oliver Peterson, 6PR Afternoons

21 June 2024 Topics: Perth Mint Senate Inquiry report E&OE OLIVER PETERSON: There has subsequently been an inquiry conducted by the Select Committee on the Perth Mint, and a WA Liberal Senator, Dean Smith is the chair of that committee. He’s just released a scathing report into the failures of the mint, and he can tell you more. Senator, good afternoon. DEAN SMITH: Good afternoon to you, Ollie. OLIVER PETERSON: There are a lot of compliance breaches that you uncovered in your inquiry, Senator Smith, that we may have not known about before. DEAN SMITH: It’s interesting you say that, Ollie, because during the inquiry, a significant development took place. And that is that AUSTRAC, which is the federal financial crime regulator, issued what’s called an enforceable undertaking over the Perth Mint that took place in December last year. That enforceable undertaking means that the Perth Mint is under the sort of the careful watch, if you like, of AUSTRAC and having to provide regular monthly reporting back to AUSTRAC to make sure that it’s not only meeting compliance with our anti-money laundering and counter-terrorism financing laws, but also fulfilling its remediation programs. So, what does this mean? It means that there still exists potential financial liabilities across the WA Government for which the WA taxpayer will be responsible, as seen in the report’s findings and conclusions today. And this is a report that has been supported, it’s conclusions have been supported by the Australian Greens and Coalition Senators. So, it’s far from a political inquiry. This is a broad inquiry that enjoys multi-partisan support, particularly around the recommendations. What we’re saying is that it’s time for the Perth Mint Board to accept responsibility. They have been trying to say that this is just a responsibility of the previous senior management. We said that is not good enough, Ollie, because it’s a Senate inquiry, it does have tremendous powers. We were able to see a number of documents that I can’t reveal to you and your listeners in terms of what they said. But there’s one document in particular, the 2020 internal audit report, that we’re of the strong view should be put before the WA Parliament so that the WA Parliament can see for itself some of the significant compliance failings that led to that enforceable undertaking. So unfortunately, WA taxpayers, the financial liability still sits over their head until this matter is resolved. The enforceable undertaking exists until the 30th of April, 2025. That’s assuming that the Perth Mint does actually meet all of its compliance obligations. I think it’s important to remember Ollie that, you know, why was it that the Australian Senate was forced to do this inquiry and not the WA Parliament? And your listeners might remember that then Premier Martin McGowan refused to give the WA Parliament the opportunity of having its own inquiry. So Senator Reynolds, Senator Brockman and Senator Cox, and myself, set up the Senate inquiry because we didn’t believe that these Perth Mint matters should go un-inquired. Because the Perth Mint, this is an important WA institution. It’s an institution that has tourism importance, but also has an important financial value to the state. And we would expect that it enjoys the highest level of governance and as a result of that, the highest level of public confidence. OLIVER PETERSON: Now you got a lack of cooperation from the WA Government, Ministers, and former Premier Mark McGowan, who back in March of last year in Parliament on a hot mic described the Perth Mint scandal as a storm in an effing teacup, Senator Smith? DEAN SMITH: Mark McGowan is wrong on that. And if the former Premier had been right, if there was nothing to see here, then AUSTRAC would not have put an enforceable undertaking over the Perth Mint in the way that it did in December last year. The inquiry politely asked the former Premier on three separate occasions to come and answer questions and he didn’t even do us the courtesy of a response. And why did we want to hear from Mark McGowan? Because, at critical times in this, he was the responsible Minister, because the Perth Mint, the Gold corporation, is a WA owned entity. So, very disappointing. West Australian taxpayers have got good reason to ask, what is it that the WA Government is hiding from? And if they don’t think they’re hiding from anything, then put that 2020 internal audit report before the WA Parliament and empower the WA Parliament to have its own inquiry. OLIVER PETERSON: Because you think that’s necessary? That the public has a right to know, Senator Smith? DEAN SMITH: The public absolutely has a right to know, because this is an important WA and national institution. But more than that, Ollie, because this enforceable undertaking sits over the Perth Mint. And this enforceable undertaking is just one of four enforceable undertakings AUSTRAC issued last year. In the case of Westpac, which was found to be in breach of similar issues as the Perth Mint, that fine to Westpac was in the order of one and a half billion dollars. So the failure of the Perth Mint to meet its compliance obligations under the anti-money laundering and counter-terrorism financing laws means that there is a potential liability to West Australian taxpayers at this moment. I’m pleased that West Australian Senators with common sense in our national Senate thought it necessary to have an inquiry that reported today. And we hope the WA Parliament takes a very close look at this. OLIVER PETERSON: Senator, thanks you time. DEAN SMITH: A pleasure. Thanks Ollie. ENDS

Transcript – Interview with Jo Trilling, ABC Perth Drive

21 June 2024 Topics: Perth Mint Senate Inquiry report E&OE JO TRILLING: (AUDIO GRAB PLAYED) Well off the back of all these accusations, WA Liberal Senator Dean Smith established a committee to report into the Mint and its compliance with a range of Commonwealth laws and regulations. Today, that inquiry released its final report. So, what have they recommended? Senator Dean Smith is here to explain. Welcome back to Drive, Senator. DEAN SMITH: Good afternoon to you and your listeners. JO TRILLING: So, your first two recommendations are for the board of Perth Mint to publicly acknowledge they failed to comply with Anti-money laundering and Counter-Terrorism Financing Act of 2006 and then publish a clear statement explaining why. Dean, why is that acknowledgement so important to you? DEAN SMITH: It’s important just to remind your listeners why it is that the Senate decided to initiate its own inquiry into compliance, specifically with anti-money laundering and counter-terrorism financing laws. And that was primarily because the West Australian Government denied the WA Parliament its own independent review and inquiry mechanism. So West Australian Senators thought it necessary, given that these were Commonwealth laws that had been breached, that some level of transparency needed to be brought over these matters. Also, during the course of the inquiry, AUSTRAC, which is the financial intelligence regulator in Australia, responsible for protecting institutions like the Perth Mint, issued an enforceable undertaking over the Perth Mint. That enforceable undertaking requires the Perth Mint to report very regularly to AUSTRAC on remediation programmes that it now has in place to comply with Commonwealth laws. This is a very significant event that occurred by AUSTRAC in December of last year, when the enforceable undertaking was put in place, because it also puts in place a potential financial liability to West Australian taxpayers. So we’ve had the inquiry, we’ve come to a very clear conclusion that there are still many questions that need to be answered. The board, we believe, should be required to make a detailed statement to the West Australian Parliament and to the taxpayers in terms of what were the series of events that led to this enforceable undertaking. And I would just add this point because I think it’s an important point. The Senate committee had an opportunity to inquire into and read for itself various internal audit reports. Those audit reports were provided to the Senate committee on a confidential basis, so we’re not able to talk about what they said. But we have decided in our committee report that it’s important that one of those internal audit reports, the 2020 internal audit report, be tabled before the WA Parliament so the Parliament can see for itself those compliance failings that led to the enforceable undertaking. JO TRILLING: Now, Senator, asking them to publish this statement is one thing. Do you expect them to actually follow through and do it? DEAN SMITH: It is the 125th anniversary this week. You’re quite right to point that out. I think that the Gold Corporation, trading as the Perth Mint, is very, very important institution for our country and for Western Australia. And I would like to think that the board and Mr Walsh, in particular, would understand that full transparency to the WA Parliament is a great way of ensuring that the Mint continues with a strong and credible reputation for another 125 years. JO TRILLING: And you were left disappointed by the fact that former Premier Mark McGowan didn’t appear before the inquiry? What would you have liked to have asked him? DEAN SMITH: I would like to have asked Mr McGowan to what extent was he aware of the findings contained in the 2020 internal audit report. A very simple but very important question. And I think the West Australian Parliament does deserve the opportunity to conduct its own inquiry to satisfy itself, in addition to the work that the Senate’s been forced to do because the WA Labor Government used its mega parliamentary majority to deny what I would regard as an appropriate, necessary level of inquiry over the Perth Mint matters. JO TRILLING: Senator Dean Smith, what more could the State Parliament, through their own inquiry, discover that your committee hasn’t? Is that excessive? DEAN SMITH: It is absolutely not excessive when we consider the fact that the enforceable undertaking issued by AUSTRAC – and AUSTRAC has only issued three other enforceable undertakings in the calendar year of 2023 – is an enforceable undertaking like the one over institutions like Westpac and, for similar failure to comply with matters like the Perth Mint, AUSTRAC levied a fine against Westpac of $1.5 billion. So, the West Australian Parliament not just has a responsibility, it has a duty. And the WA Government should not stand in its way to make sure that enforceable undertaking doesn’t lead to financial penalties being put over the West Australian taxpayer. I think actually the WA inquiry is more necessary now as a result of the Senate’s work, not less. JO TRILLING: And you feel that the State Government has really sort of downplayed the breaches. DEAN SMITH: Absolutely. There is no question about it that the West Australian State Government, first under Premier McGowan and now under Premier Cook, is hoping that these issues would just go away. And it’s a fundamental point that your listeners appreciate, I believe, that is that this enforceable undertaking is a very serious matter. Yes, Gold Corporation is complying with it to date. And that is the evidence that we heard from as AUSTRAC as recently as this week. But that enforceable undertaking sits over the Gold Corp until the 30th of April next year. So for Premier Cook and for former Premier McGowan this matter is far from concluded. JO TRILLING: Senator, thanks for your time. DEAN SMITH: It’s a pleasure. ENDS

Media Release – ABS data confirms WA’s record housing pain

SENATOR DEAN SMITH SHADOW ASSISTANT MINISTER FOR COMPETITION, CHARITIES AND TREASURY SENATOR FOR WESTERN AUSTRALIA MEDIA RELEASE 10 June 2024 ABS DATA CONFIRMS WA’S RECORD HOUSING PAIN   WA is again breaking property records for all the wrong reasons, with average home loans reaching new highs and piling unprecedented pressure on aspiring homebuyers. New Australian Bureau of Statistics figures reveals the average home loan in WA is now $537,913 – the highest since published ABS data began. It is a significant rise from the $475,405 average in September 2023, a jump of $62,508 over just 8 months. Based on the average loan amount of $537,913, assuming a 30 year loan at an interest rate of 6.22%, this translates to repayments of $ 3,302 per month. That is an increase of $384 per month since September 2023 – or 13.5%. It mirrors REIWA data showing that Perth house prices grew by three times the national rate in April 2024, up by $78,000 since January last year. The latest property prediction by Oxford Economics Australia is that the median price of a home in Perth will rise to over $1 million within three years. This week’s ABS data also reveals investor loans in WA rose by 37% between September last year to reach $1.1 billion in April 2024. Again, this is at the highest level since published ABS records became available. 75% of all investor lending in WA during April 2024 was directed towards buying established homes, putting them in direct competition with local owner occupiers. Many are interstate investors and in a stronger financial position to outbid local WA buyers because East Coast property values and levels of equity are higher than in in the West. In fact, interstate property buyers overall now account for one quarter of all online searches for WA property, mostly directed at lower priced properties given they offer higher rental yields than those in larger cities like Sydney. Over the last year, the biggest increases in property prices have been in the more affordable areas of Perth, with prices in Armadale surging by 31.6%. Kwinana (+28.6%) and Rockingham (+ 27.9 %). Compounding the situation is another record – the Albanese Government’s unmodelled immigration boom, which has seen WA growing at a faster rate than any other state or territory. The result is an acute shortage of established housing and the reality that low income earners, in particular will increasingly be unable to buy a home in Perth. Comments attributable to Senator Dean Smith: “At the election, Anthony Albanese promised he would stand up for WA, but instead he is punishing first homebuyers and mortgagees with crippling interest rates because he has failed to bring down inflation. “Month on month, it becomes harder for homeowners to make their dreams a reality in WA – for some it is now virtually impossible”. “While the current market benefits some investors, these record ABS numbers confirm the situation facing hundreds of thousands of Western Australians who just want somewhere to live. “Labor has an obligation to boost housing supply urgently, but, in the meantime, poor policy like Anthony Albanese’s unmodelled immigration has made a bad situation worse. “In the meantime, the Albanese Government’s spending is pushing up inflation and – as the RBA Governor confirmed this week – risks increased interest rates at any time. “Many WA households are already in a vulnerable position and could be forced over the edge if there are further rate rises by the RBA, which continues to do the Government’s heavy lifting for it. “These are the hard facts of two years and three budgets under Labor.” ENDS  

Opinion Piece – Beware a Labor PM bearing a plan to save the economy – The West Australian

Last month, Federal Treasurer Jim Chalmers stood in front of the Australian people to deliver his “plan” to bring down inflation. But if there’s one thing the past two years have taught us, it’s not to trust a Labor Government with a plan. Remember PM Anthony Albanese’s plan to build more than 40,000 affordable homes? How about Energy Minister Chris Bowen’s plan to reduce energy bills by $275? I call it Labor’s First Law of Economics: any part of the economy they plan to improve only gets worse. In delivering his third Budget, Dr Chalmers said Labor’s economic plan would take three-quarters of a percentage point from inflation this year, and another half of a percentage point next year. “Treasury is now forecasting inflation could return to target earlier, perhaps even by the end of the year,” Dr Chalmers said. There was just one problem with Labor’s plan: reality. As soon as the Budget was delivered, economists warned rather than bringing down inflation, Dr Chalmers had inflamed it. Not that you needed to be a professional economist to see record government spending, record taxation and record net overseas immigration would create one of the worst inflation crises this country has seen. On cue, inflation rose to 3.8 per cent a far worse figure than in the UK, US and much of Europe. Under Dr Chalmers, government spending has reached 27.6 per cent of GDP, exceeding even pandemic-era spending, and still going up. Much of this spending has been frivolous when constraint, for the sake of households, was needed. Travelling across the country, I’ve yet to meet an Australian who thinks we need an extra 30,000 bureaucrats in Canberra, or it was prudent to spend nearly $500 million on the Voice to Parliament campaign. We can throw in the $40m of your money Dr Chalmers is spending to sell you his broken promise over stage three tax cuts. As a result of surging inflation, the Reserve Bank of Australia who, unlike the Treasurer, has to deal with reality confirmed during Budget Estimates what Australians were fearing: a 13th rate rise is on the cards. The cost of Dr Chalmers’ plan has, as always, fallen on Australian households. Australians now pay 62 per cent more on their mortgages than before the election. In WA, we’re cumulatively spending an extra $1 billion per year on mortgage repayments. It’s $1b not being spent in hospitality, entertainment even medical care and school fees. That’s some plan. Last month, along with “moderating inflation”, Dr Chalmers championed Labor’s plan for increasing wages and “expanding business investment”. Again, that pesky obstacle reality got in the way. In the same week, it was confirmed inflation had gone up, not down. National Accounts data revealed the economy had contracted for five consecutive quarters and had entered a per-capita recession. This means, per person, the economy is shrinking. The figures showed how personal savings (down 9.9 per cent), disposable income (down 7.8 per cent) and productivity (down 7.8 per cent) have collapsed. Independent economist Chris Richardson put it better than most when he said: “There is pain leaking out of every number in these accounts.” Business investment, instead of expanding, has been decimated. ASIC data shows that in WA, Australia’s economic powerhouse, business insolvencies are double what they were last year. Just this week, the Small Business and Family Enterprise Ombudsman said 43 per cent of businesses had not made a profit last year, while calls to the Ombudsman’s helpline had risen 20 per cent. Instead of responding to reality, Dr Chalmers is blaming it. In response to the alarming figures revealed this week, he said the “primary reason” for Australia’s economic stagnation was the RBA, rather than his own policies. It’s a long way from his confidence of last month, when he told the nation only Labor could be trusted with “an economic plan where growth and opportunity go together”. On behalf of the country, I have a simple request for Dr Chalmers and Labor: please, no more plans.

Media Release – Labor hides critical Productivity Commission report

SENATOR DEAN SMITH SHADOW ASSISTANT MINISTER FOR COMPETITION, CHARITIES AND TREASURY SENATOR FOR WESTERN AUSTRALIA MEDIA RELEASE  5 June 2024 LABOR HIDES CRITICAL PRODUCTIVITY COMMISSION REPORT The Albanese Government is hiding a report expected to shape the future of religious charities and private and public schools – leaving them and their communities in limbo. Under questioning from Senator Dean Smith in Budget Estimates, Productivity Commission officials revealed the report on overhauling Australia’s DGR (Deductible Gift Recipient) regime was handed to the Government on 10 May. This means it has been with Assistant Minister Andrew Leigh for nearly a month, while anxious organisations await news of their fate. The report is expected to reflect an earlier draft, recommendations of which included slashing the DGR status of religious charities and school building funds. Officials confirmed that the report must be released within 25 sitting days, a date in mid-August, but Senator Smith urged Labor to make it public immediately. “I have been meeting with organisations who expect to be impacted by these changes – so has Andrew Leigh, so he knows precisely how distressed they are,” Senator Smith said. “It makes Labor keeping them waiting even more unacceptable. “Andrew Leigh should release the report now and, while he’s at it, commit the Albanese Government to rejecting any recommendations that jeopardise giving to religious charities and school building funds.” It was also uncovered that the Productivity Commission has not modelled the effect of the proposed DGR changes. As a result, there is no way of knowing if it will – or can – achieve its aim of increasing charitable giving in Australia. There is also no way of knowing the scale of the damage it might do. Senator Smith said it cast further doubt on the Albanese Government’s ability to achieve its target of doubling philanthropic giving by 2030. “The work religious charities are doing is more needed than ever in Labor’s cost of living crisis and the Government’s reward is to consider denying them charitable status in favour of groups it prefers ideologically,” he said. “And Labor’s approach makes no sense. “You cannot hope to double giving if you remove the incentive for donating to some of the country’s most established charities.” ENDS