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Shadow Assistant Minister for Competition, Charities and Treasury – Media Release – Labor’s Future Made in Australia Another Blow to WA’s Resources Industry

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SENATOR DEAN SMITH SHADOW ASSISTANT MINISTER FOR COMPETITION, CHARITIES AND TREASURY SENATOR FOR WESTERN AUSTRALIA MEDIA RELEASE 3 February 2025 LABOR’S FUTURE MADE IN AUSTRALIA ANOTHER BLOW TO WA’S RESOURCES INDUSTRY The prosperity of Western Australia’s critical mining and resources sector is again under attack from the Albanese Government. Labor’s Future Made in Australia policies are creating regulatory uncertainty, driving up costs, and discouraging investment in the sector. Although buried in Albanese Government rhetoric, the Future Made in Australia (Production Tax Credits and Other Measures) Bill 2024, which has just been the subject of a Senate inquiry, lacks basic detail on how proposed tax credits will be measured, distributed or enforced. The Coalition section of the inquiry’s report, released last week, confirms how the Bill leaves WA’s economy exposed to risk and excessive red tape—threatening the competitiveness of our state on the global stage. Blind to the Bill’s total lack of clarity on key issues, and stakeholder concerns about the uncertainty this will create, the Albanese Government appears determined to rush this policy through Parliament prior to the next election. This is despite the fact the tax credits in the Bill will not come into effect until 2027, that it saddles businesses with compliance costs in every year of the project, and links tax incentives to murkily defined Community Benefit Principles (CBPs). Treasury officials cannot yet explain how CBPs will be enforced, whether they will require union agreements, or what penalties will be imposed for non-compliance. The Minerals Council of Australia has warned that CBPs could duplicate existing regulatory burdens, increasing costs and slowing down projects, while the Chamber of Minerals and Energy of WA raised concerns that these provisions provide no clear benefits while adding administrative hurdles. The Albanese Government is deterring investment in WA at a time when businesses and projects here need stability. They are under growing threat from Labor on multiple fronts – with its on again off again Nature Positive legislation creating uncertainty and risking the future of WA’s resources sector by wrapping it in red tape without delivering any obvious benefit. The Albanese Government’s own Resources and Energy Major Projects: 2024 report leaves little doubt about the toll misguided policy is taking on the resources sector, revealing 81 major resource projects—worth $119 billion—are now stalled or at risk, with 47,000 jobs in doubt. This is more than triple the stalled investment recorded just a year ago. Instead of supporting economic growth, Labor is making it harder than ever for businesses to invest and create jobs—pushing critical projects offshore at a time when WA—and the rest of Australia—can least afford it. Comments attributable to Senator Dean Smith: “The Albanese Government’s Future Made in Australia policy is riddled with complexity and poorly defined obligations that risk increasing regulatory costs, tying businesses up in red tape and—worst of all—deterring investment”. “Labor is actively fueling uncertainty, pursuing policies that leave businesses with little idea about the compliance measures they will face, what penalties will apply, or how tax credits will be administered.” “Western Australia is competing with the United States, Canada, and other resource-rich nations that are offering clear and immediate investment incentives—Labor is reducing, rather than increasing, our competitiveness.” “If Labor were serious about making Australia an investment leader, they would cut regulatory duplication, offer clear guidance on requirement and penalties, and provide incentives that deliver immediate benefits rather than ones that won’t start until 2027.” ENDS

RADICAL LABOR IR CHANGES THREATEN CHARITIES

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  SENATOR DEAN SMITH LIBERAL SENATOR FOR WESTERN AUSTRALIA SHADOW ASSISTANT MINISTER FOR COMPETITION, CHARITIES AND TREASURY   MEDIA RELEASE 23 January 2024   RADICAL LABOR IR CHANGES THREATEN CHARITIES   Thousands of jobs in Australia’s charity sector risk being plunged into uncertainty thanks to Labor’s industrial relations agenda. As reported in The Australian newspaper this week, the Albanese Government’s attack on fixed-term contracts will have very real consequences for the more than 60,000 registered charities across the country that deal in short, often transitory, funding arrangements. David Crosbie, CEO of the Community Council of Australia, raised the alarm on broader impacts for the sector in Monday’s article. Mr Crosbie said restricting fixed-term contracts would burden charities with the extra costs associated with full-time permanent contracts, such as redundancy entitlements. He said charities were at a greater risk of trading insolvent if they couldn’t use fixed-term contracts to match their funding streams, which typically operate on two-year cycles. Although its broad impacts will be felt throughout the economy, Labor’s union-led industrial relations crusade is a particularly unwelcome blow to the charities sector. Coalition Charities spokesman Dean Smith said its essential to remember that charities and not-for-profits employ more than 10% of the country’s workforce, and generate nearly $200 billion in revenue. “As a result of the indifference of Minister for Charities Andrew Leigh, Labor has done nothing to advance important reforms such a superannuation bequests and more structured tax returns, which were advised by the Productivity Commission more than a year ago,” Senator Smith said. “Minister Leigh and Labor also twiddled their thumbs for months when it came to appointing new members of the Australian Charities and Not-for-Profit Commission’s Board.” Senator Smith said Andrew Leigh needed to stand up against the extreme policy positions of his colleagues for the sake of his portfolio. “Thousands of jobs in the charity sector are at potential risk – it’s shameful that they can’t rely on the federal Minister for Charities having their back,” Senator Smith said. “Labor failed to live up to his promise of bold and productive reforms in the national charity space.” “And, with charities working overtime to support Australians through the cost of living crisis, this is insult to injury.”   ENDS.

WA FAMILIES HIT BY LABOR’S RISING BACK TO SCHOOL COSTS

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SENATOR DEAN SMITH LIBERAL SENATOR FOR WESTERN AUSTRALIA SHADOW ASSISTANT MINISTER FOR COMPETITION, CHARITIES AND TREASURY 19 January 2024  WA Liberal Senator Dean Smith, a member of the Coalition economic team, says the concerns of many local parents and carers have been realised due to a sharp hike in education-related costs under the Albanese Government in 2024. This week, a report by school children’s charity The Smith Family found that nearly 90% of respondents to a survey of 2,000 families were concerned about not being able to afford school supplies for the year. More than half of the survey’s respondents said it was harder to afford all the things their child needed for school than last year. 46% feared they were not going to be able to afford the right uniform or shoes for their children. The Smith Family report comes in the wake of recent estimates that reveal families are spending on average $2,547 a year to send a child to primary school – a figure that increases to $4,793 for secondary school. In total, there has been an almost 5% rise in education costs since Labor was elected. It should come as no surprise that these costs are pushing vulnerable groups further to the brink. In September 2022, a hearing of the Senate Cost of Living Committee heard that about 7,000 grandparent carers in WA were earning less than $19,000 a year, and living below the poverty line. Representations from the group flagged back to school costs as a major challenge. The same Committee heard from YouthCARE, whose CEO, Tamsyn Cullingford, confirmed that the past 18 months had seen schools and families who were previously completely self-reliant ask for the charity’s help. Senator Dean Smith said Labor is consistently failing in its promise to reduce the cost of living for Western Australians. “Under Labor, parents and carers are worried about covering the cost of sending their children to school – irrespective of whether they are public or private,” Senator Smith said. “The 5% rise in education costs comes when home rentals have increased 27% under Labor, and monthly repayments on an average mortgage for a $500,000 home are growing by more than $1,000 since Labor were elected,” he said. “These intense cost of living pressures mean parents and carers are starting to make heart-breaking decisions such as pulling their children out of extra-curricular activities because they simply can’t afford them.” “They are feeling the heat at every angle under Labor and it’s getting worse.”

Balance crucial in a divisive debate – The Sunday Times

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It’s the time of the year when the subject of Australia’s national day, and the date on which we celebrate it, fills the airwaves and column inches. For a couple of weeks it dominates media, political and, more recently, commercial conversations. The decision by Woolworths and Aldi, among others, not to sell Australia Day-themed material this year at least partly on ideological grounds is the latest example of elements of corporate Australia being unwilling to stay in their own lane and has rightly drawn criticism. We now expect a debate to arise as each January 26 approaches. But those of us who are genuinely proud of our country, enjoying its triumphs and mindful of its tribulations, should not accept the efforts of those sowing hypocrisy where there should be honesty, and division where there should be unity. So, as we near this Australia Day, let’s ensure the discussion is characterised by some balance and common sense, too. First, surely we can all agree there should be a national day on which we celebrate Australia and the part each of us plays in it – and this should be known as Australia Day. Second, we should be clear about what we are acknowledging on Australia Day. We celebrate our diversity, our respect for each other and the individual dignity every Australian is entitled to. We honour the liberty of expression that allows free debate, the equality given to every person before the law, and reiterate our trust and respect for the institutions ensuring our democracy. All this is wrapped in a spirit of gratitude, fairness and tolerance. Third, let’s recognise all our history – the good and the bad. We are blessed with a rich Indigenous heritage. We are a nation that has built a trusted national identity that is the envy of the world. We have fought for freedom over tyranny in global conflicts and opened our doors to millions looking to build a new life in safety. We can absolutely enjoy all that is good about our country, while also remembering past wrongs and committing ourselves to constant improvement. And we can do this in the knowledge that Australia’s historical ledger has more pluses than minuses. Finally, we must be clear about the date. Australia Day marks January 26, 1788, and while this represents understandable and valid sensitivities for some parts of the Australian community, it can also be viewed as a lens through which we better appreciate the experiences of First Nations Australians over the past 236 years. I’d argue that what is required is not a change of date, but an increased level of maturity and understanding – especially from our parliamentarians. There are those, led from the front by Labor Prime Minister Anthony Albanese, working to deliberately erode confidence in our national day by failing to provide real leadership. Anthony Albanese could learn a thing or two from the political playbooks of former prime ministers Paul Keating and John Howard on this. When confronted by efforts in the 1990s to destroy Anzac Day and change the Australian national flag, these leaders acted decisively. As a result, Australians are today comforted by the fact both Anzac Day and the Australian national flag are protected by law. Paul Keating enshrined Anzac Day in legislation in 1995 and John Howard in 1998 ensured the national flag could only be changed by a vote of all electors. Debates about these symbols are now muted because people know they must make a substantive case for change, rather than simply disrupting from the sidelines. Australia Day is every bit as significant and deserves the same certainty and protection. It’s something to think about as the noise once again begins to rage. In the meantime, I have no doubt many will celebrate Australia Day 2024 with enthusiasm – and they are the Australians Anthony Albanese and corporate Australia should be paying attention to.

Albo in line for a frosty reception – The West Australian

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Since being elected Prime Minister just over 18 months ago, Labor leader Anthony Albanese has tried hard to make a virtue of his visits to WA. Despite WA’s sweltering summers, when he touches down for his first visit in 2024, he should come prepared for a frosty reception. Having had a bitter taste of Labor, WA voters will now be looking for a “please explain” for his broken promises. Above all else, West Australians will want to know why Anthony Albanese and Labor have failed on their pre-election pledge to change Australia “for the better” by delivering cost-of-living relief, cheaper housing and mortgages, and wages growth. Far from making things better, WA families are ending 2023 in more financial pain than a year ago. Since Anthony Albanese made his pledge in Perth in May 2022, interest rates have risen on 12 occasions and are now higher than they have been for more than a decade. For WA families with an average mortgage of $493,000, that means having to find $3434 a month, or $41,208 a year, to meet their mortgage repayments. The monthly challenge of meeting these rising mortgage costs has been made even more difficult because of Labor’s failure to tackle inflation. Just this month the Western Australian Council of Social Service identified the “harsh realities” and “skyrocketing living costs” being experienced by families in its 2023 Cost of Living Report. The report found costs for a single-parent family had increased by $67.20 a week and exceeded basic living costs by just $1.40, making it more difficult for families to save or meet unexpected expenses, such as a car repair or replacing a washing machine or fridge. Two-parent families were now having to find an extra $84.94 a week, and age-pensioner incomes fell short of basic living costs with many experiencing a “substantial decline” in their financial wellbeing. Many WA families say they are now turning to the generosity of local charities for the first time to help make ends meet. Tragically, this cost-of-living stress is forcing some to take drastic steps. Fresh data has revealed shoplifting rates are the highest on record — in WA there were 7733 offences from July to September this year, an increase of 2306, or 42 per cent over the same period last year. Labor has also failed WA first-homebuyers. Data released by CoreLogic show that since January this year the median house price in Perth has surged by 11.1 per cent to $669,609, with further increases of up to 10 per cent predicted in 2024. The combination of rising interest rates and property prices is now putting first-home ownership beyond the reach of many young West Australians. And Labor has no good news for WA renters. Over the 12 months to September, Perth rents increased by almost 20 per cent and are expected to rise further in 2024, according to the Real Estate Institute of WA. For WA’s first-homebuyers and renters, the problem is exacerbated by Labor’s failure to properly plan and model a population policy that will benefit WA at a time when our population is growing faster than anywhere in Australia. And while costs have risen, the outlook for wages is bleak. The Reserve Bank of Australia recently updated estimates for wages growth to reveal that by December 2024, real wages will be 5.4 per cent lower than they were three years ago. Labor’s failure to tackle rising costs, coupled with sluggish wages growth, means Anthony Albanese’s economic leadership has made West Australians poorer. In May 2022, West Australians put their trust in Anthony Albanese’s pledge that life would be better for WA families under Labor. With a Federal election due after August, now is the time for WA voters to ask themselves how long they’ll be willing to pay the price of Labor’s cost-of-living crisis.

Nuclear resistance a COP out – The West Australian

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Every COP begins with a small degree of scepticism. For many critics, COP28 in Dubai was yet another UN talkfest, beginning with worldwide media coverage, conspicuous in its largesse, likely to fizzle out in disagreement and a sense of futility. Adding fuel to the scepticism was the fact that year’s host nation, the United Arab Emirates, a member of OPEC, and one of the world’s biggest petrostates. And this was the 28th COP since its inception in Berlin in 1995, and global emissions have never been higher than they are today. But those who disregarded the Dubai COP risked missing something important – indeed there is good reason to think that the most recent climate talks might yet be the most consequential in the quest for net zero. That’s because, in the words of Coalition energy spokesperson Ted O’Brien, COP28 was quickly becoming known as the “nuclear COP”. For proponents of nuclear, an emissions-free, reliable and cheap source of energy, the re-education of the world on the benefits of this technology has been a long and arduous process. It’s been made ever more difficult by the hysteria and disinformation propagated by organisations such as the Australian Greens. The symbol of the nuclear COP was the signing of an international pledge, which committed to trebling the supply of nuclear energy by 2050. The signatories to the pledge are among Australia’s closest allies, and include the US, the UK, Japan, and France. It should have been fantastic news for Australia. We’re already the world’s third biggest supplier of uranium and, on most estimates, still have more than any other country on earth beneath our feet. We’re a responsible international citizen and believe in reducing our carbon footprint. And while the world, as it stands, is not on track to meet the 1.5C limit established by the Paris Agreement, the international community is beginning to realise that nuclear energy could well be the solution. There are already 440 nuclear reactors across the globe, supplying 10 per cent of the world’s electricity. In 2022, nuclear energy was the biggest source of non-emitting electricity in the OECD. In the UAE, myself and a number of Coalition colleagues were lucky enough to visit the impressive Barakah nuclear power plant. Standing on what was previously a large swath of sand, there are now four nuclear reactors that supply 25 per cent of the country’s electricity. But most importantly, embracing nuclear could provide a path through the increasingly dark and confusing woods that is the Labor Government’s energy policy. Labor has talked a big game on energy, from “Rewiring the Nation”, “Powering the Nation” or, – wait for it – “Driving the Nation”. They’ve also dedicated about $25 billion to these dubious projects in the most recent Budget. The result? Power prices have risen more than 25 per cent in some east coast States in a year, record numbers of West Australians are on hardship plans to pay their energy bills, and frustrated farmers are discovering they don’t want their properties laden with thousands of kilometres of new transmission lines. Just this week, Sydney residents were told to avoid using essential appliances in order to avoid a blackout. All the while, Australia’s dependence on coal and gas, which still provides more than two-thirds of the country’s energy, remains relatively unchanged. Labor’s ideological fixation with wind, solar, and hydro, at the expense of any other technology, is harming Australian households and businesses, for little to no overall environmental benefit. The wider economy is beginning to sit up and take notice of this unsatisfactory state of affairs. Big business, which we discovered this year Labor has a soft spot for when it comes to public relations opportunities, is now beginning to embrace nuclear. This week, 70 of Australia’s most senior chief executives called for less ideology and more pragmatism in Australia’s energy transition. Like Ted O’Brien and the Coalition, they called for all technology options to be on the table, including nuclear. My message to Labor is that there is no shame in changing your position when the facts change. And the facts, overwhelmingly, show that developing countries that are serious about tackling emissions without harming their economy, are running towards nuclear energy.

Why reform would weaken WA – The West Australian

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Every few years in Canberra, the topic of electoral reform arises and momentarily grips the attention of certain parliamentarians and public servants. These reforms can usually be distilled into three categories: amending the legal age to vote, ending compulsory voting, and increasing the size of one or both houses of Parliament. It is the last of these — a proposed, whopping expansion of the House of Representatives — that is currently the talk of the capital. First off, don’t be fooled by the promise of better governance, or indeed better outcomes, courtesy of a bigger Federal Parliament. Among its negative effects, and there are many, is that the planned changes will diminish the strength of WA in the Commonwealth. Late last month, a Labor-dominated committee recommended doubling the Senate representation of the ACT and Northern Territory from two to four. More concerningly, the same report produced by the committee raised the prospect of increasing the number of Lower House seats to as many as 200 — the vast majority of which would be in Sydney, Melbourne and, to a lesser extent, Brisbane. At a time when the Albanese Government’s policies are inflicting significant economic harm on WA, plans to further weaken the voice of Australia’s underappreciated economic powerhouse should be fiercely resisted. The committee wants Parliament to explore the idea of a redesigned Lower House, which would see NSW and Victoria gain an extra 28 seats, and Queensland an extra 10. WA would acquire just five extra seats, and be left with a total of 20, compared to a possible 63 for NSW. Regional voices would also be muzzled by the committee’s designs. To reduce what is known as malapportionment, or the uneven number of voters across electorates, seats would be demarcated using arithmetic, rather than the Australian Electoral Commission’s “harmonic” method. This would invariably lead to more seats in dense capital cities and fewer in country Australia. It would mean a Federal Parliament more heavily laden with consultants, lawyers and public relations experts than farmers, small business owners and people on the land. Canberra would become even more insular, a place where the focus of Government is fixed unbendingly on the interests and views of East Coast capital cities. It won’t end well — especially for WA. Indeed, after 18 months of an under-delivering, image over substance Albanese Government, we can already see the consequences of a one-eyed Prime Minister with no interest in backing our State. Record, unmodeled immigration, one of the driving forces of high inflation, has made it all but impossible to rent a home, or indeed build one, in WA. The average rent for a Perth house hit a record $600 a week in November. Labor’s recent $300 million infrastructure cuts on major WA roads will undoubtedly hurt regional communities, as well as risk lives. This slashed infrastructure spend is also a GST cut by stealth — Anthony Albanese and Jim Chalmers’ way of making us pay for the fairer GST deal the Coalition secured for our State in 2017. Bad Labor policy and increased Labor funding to professional litigators like the Environmental Protection Agency is making life increasingly difficult for the State’s critically important resources sector — royalties from which pay for roads, schools, hospitals, and social securities like the NDIS. And it’s about to get even harder for this sector, with the Albanese Government’s recent industrial relations laws placing unsustainable demands on mining companies regarding labour hire. Investors are already beginning to look elsewhere. This is an unacceptable position, but the reality of life under Labor and its misguided priorities. The takeaway from all this is hard to ignore. Labor’s proposed electoral reforms are the latest in a long line of betrayals of WA. Rather than stand up and be accountable to voters in the West, whose circumstances he is rapidly making worse, Anthony Albanese would rather drown our voices out in Parliament. Then there are the economics of such a plan. Labor has increased the size of Canberra’s public service by 10 per cent since coming to power last year, adding more than $1 billion to the annual public sector wage bill. Economists are already saying this has had an impact on domestic inflation. The financial consequences of adding as many as 50 extra parliamentarians, and the staffing allocation that goes along with it, would be comparable. I’m fortunate to travel around the country frequently because of my work, with much of that travel in regional WA. Constituents, as you would expect, are never shy of sharing whatever criticisms they might have of the politics of the day and I have received many pieces of advice. But making Parliament bigger has never been one of them. Certainly not at the expense of WA’s representation in Canberra. And, if Anthony Albanese visited the Wheatbelt or East Kimberley — or even Perth’s northern suburbs — he’d know it.

Transcript – Interview with Gary Adshead, 6PR Perth

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Topics: Perth Mint Senate Inquiry E&OE Gary Adshead Dean Smith, Liberal Senator for WA, joins me on the line. G’day, Dean. Dean Smith Good morning to you, Gary. Gary Adshead Well, I’ll tell you what, first off, let’s just go back to what AUSTRAC have decided, this enforceable undertaking that Perth Mint have agreed, and Goldcorp have agreed, to go into. Is that a good outcome for the Mint? Dean Smith When the WA Government and Bill Johnson tries to suggest this is a win for West Australians, that is totally delusional, and I think a very powerful example of their attempt to gaslight West Australians. What the AUSTRAC decision says is quite alarming, and it’s there for people to see on the AUSTRAC website. It talks about a variety of issues where Gold Corporation has failed to meet a compliance requirement. Let me just read a quick quote for you, Gary, and for your listeners. From page two of the documents. It says that the AUSTRAC CEO is concerned that the Gold Corporation needs to take specific actions. Page three of the same document talks about the fact that Gold Corporation lists from point 8 through to point 12, a whole variety of compliance issues that it fears have not been met. And then at page four of that same document, and I’m quoting now, it says that Gold Corporation has failed to comply and may remain non-compliant with provisions of the anti-money laundering laws in our country. And let me just make one point – it’s not yet true that AUSTRAC will not fine Gold Corp and by extension West Australian taxpayers. That document says this enforceable undertaking does not affect AUSTRAC’s right to take any action, so future action in relation to any contraventions of the anti-money laundering laws, or the Counter-Terrorism Financing Act. This is gaslighting at its extreme by Bill Johnson and the WA Government. Gary Adshead Okay. Now, one of the other things that the Minister said was that, you know, when they came to government in 2017, they started to identify the fact that there were not the sort of processes and rigid processes that need to be in place in order to prevent money laundering, et cetera, through Perth Mint, given that they deal in gold bullion. He went on to say that they were starting to work on that. And then along came COVID. And, I think, to quote him, he said that the West Australian Premier at the time, Mark McGowan, was too busy saving lives, to take up what was required in relation to fixing the Perth Mint. And that’s why the job was handed to Bill Johnston. What do you make of that? Dean Smith That’s Bill Johnson’s account of things. And I’ve got a slightly different interpretation. I suspect that people in the WA Government started to appreciate just how serious some of these, non-compliance or failure to comply issues were with the anti-money laundering laws. And the then Premier Mark McGowan decides to offload it to Bill Johnson. That’s not an excuse. And that was on the public record when we had our inquiry in Perth on the 3rd of November. That is what Bill Johnson said to the Senate inquiry. That’s not an explanation that I’m prepared to accept, but we’ll have an opportunity to explore these matters again, because the Senate only in the last two weeks agreed to extend the Senate inquiry reporting date until the 30th of March. And that’s why I think AUSTRAC’s enforceable undertaking that was released early this week has come at the perfect time for the Senate inquiry, because I think it leaves many questions still unanswered. What Bill Johnson is attempting to do here, I’m hoping that West Australians will see through it, is create his own narrative. A narrative that’s in contrast to what has been brought forward as evidence in the Senate inquiry thus far. Gary Adshead But he’s right when he says there’s no actual evidence of money laundering taking place. Dean Smith This is an example of Bill creating his own narrative. What we are examining here is the failure of the Gold Corporation to meet its’s very clear legislative requirements in regard to anti-money laundering laws. And if they haven’t been doing that, then it does open the door for clients to act criminally. So, what Bill is trying to say is actually not what we’re talking about here. What we are talking about here is that the Gold Corporation has not been compliant with its very clearly stated obligations under Federal law to ensure that it doesn’t leave itself and its client’s open to any anti-money laundering. This enforceable undertaking is there for people to see, eight pages of it. I think it is damning and the decision of AUSTRAC to require an independent auditor to oversee Gold Corp’s implementation of the remediation program that it has in place, I think speaks volumes. It suggests that AUSTRAC isn’t completely comfortable with the work that the Gold Corp is doing now. That is my opinion at the moment, but I can test that opinion when AUSTRAC comes before the inquiry in the next few weeks. Gary Adshead Can I just ask you that specific claim that Bill Johnson made about you where he says that you’re touting sort of allegations around two banks that just don’t stack up? What do you say? Dean Smith Bill is absolutely wrong. There were numerous media articles in 2020 that identified HSBC and JP Morgan as having ceased purchasing gold from the Perth Mint. These were articles written by very reputable journalists, including a Walkley Award winner. Nonetheless, it was a matter I put directly to Mr Walsh. When he was at the Senate inquiry on the 3rd of November, I said to the Chairman, in 2020 the Australian Financial Report Financial Review reported that HSBC and JP Morgan stopped buying gold from the Perth Mint. Has the…

Don’t fall for Mint gaslighting – The West Australian

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Whenever a history of Western Australia is written, you can be certain one word will loom heavy among the pages. That word is gold. Before the discovery of this precious metal in the 1890s, WA was a struggling outpost. The State’s sparse European population, for the most part, toiled thanklessly on the ancient lands they were ill-equipped to live and work on. Inspired by rumours of vast fortunes, more than 100,000 people migrated to the State in a decade at the end of the 19th century, iconic country towns like Coolgardie and Kalgoorlie exploded into life and the population of Perth tripled. Gold put WA on the prosperous trajectory it has enjoyed, apart from inevitable fluctuations, ever since. It’s no surprise the Perth Mint quickly grew in stature and significance to become an icon. Not only is it a beautiful and distinctively West Australian building that has been in the heart of the city for 120 years, it’s Australia’s official bullion mint and trades with central banks, sovereign wealth funds and private investors globally. It turns over more than $20 billion annually and employs more than 700 locals. One other thing. As the world’s only government-owned precious metals producer, it’s underwritten by you and I – the WA taxpayer. Given this unique arrangement, anything that affects the Mint affects us too, leaving us in a potentially vulnerable situation. That is why we should be deeply disturbed that the Mint could be facing fines totalling hundreds of millions, even a billion dollars from AUSTRAC for its failure to comply with anti-money laundering and counterterrorism financing laws. As has been widely reported, the Mint has also been beset by gold doping issues, which, despite what the chair of the board said last week, has damaged its reputation. So much so, in fact, that international banks HSBC and JPMorgan stopped buying its gold. It was obvious that matters at the Mint, especially those concerning regulatory compliance with Commonwealth legislation, required investigation. That’s why a bipartisan group of colleagues and I established a Senate inquiry into compliance matters at the Mint – made all the more necessary after the minister responsible for the Mint, Bill Johnston, former premier Mark McGowan, and WA Labor used their parliamentary majority to stifle any investigation at State level. The Senate inquiry held its third public hearing last Friday. It was the first in Perth, and what we heard should be of concern to all West Australians. We were told that, despite holding multiple internal audits between 2018 and 2020, the Mint failed to detect the Euro Pacific Bank as a major client. Multiple media reports have established that this bank was under investigation in five different jurisdictions, including Australia, for its ties to money laundering. But it was allowed to hold more than $100 million in gold at the Mint. The head of the Mint’s audit and risk committee insisted he had no regrets over how internal audits had been conducted – despite admitting there were “inconsistencies” in their customer identification requirements – and the fact they failed to identify Euro Pacific Bank as a customer. Equally troubling was the seeming lack of due diligence shown by the chair of the board, Sam Walsh, who was appointed at the beginning of 2019 by Mark McGowan specifically to improve governance and compliance standards. It was surprising that, in light of this directive, Mr Walsh failed to familiarise himself with any of the Mint’s biggest international clients. Here it is worth noting that, according to AUSTRAC’s evidence on Friday, know-your-customer requirements are the “cornerstone” of Australia’s anti-money laundering laws. AUSTRAC also told the inquiry it was “incredibly important that any reporting entity knows and understands the customer” and has “ongoing due diligence” of their customers. Mr Johnston also appeared before the inquiry. He insisted we had accused the Mint of money laundering “without a shred of evidence”. To be very clear, the inquiry’s focus is on the Mint’s compliance with Commonwealth legislation – with no suggestion at any point the Mint had engaged in this activity. The reality is that suits Mr Johnson to focus on money laundering as a distraction from the genuine concern, which is that, for a time, the Mint was not in regulatory compliance. Whenever the State Opposition tried to get a parliamentary inquiry up into the Mint, Mark McGowan and Bill Johnston have dismissed their concerns as irrelevant and baseless. Mr Johnston said so again last Friday. But we know from their own actions, in Mark McGowan’s case as far back as 2019, that they held grave concerns over the conduct of the Mint. Why else did the former premier appoint Mr Walsh to clean up the Mint’s act in the first place? There’s a word for this kind of behaviour, assuring WA it’s business as usual, and it’s called gaslighting. That includes shrugging off any shortcomings – past or present. WA Labor could, and should, hold a parliamentary inquiry into this immediately, as the State Opposition has been calling for. We owe it to our history, our modern-day gold producers, our international reputation and the hundreds of West Australians it employs, to make sure the Mint is the very best it can be. Until it does, the Senate inquiry will continue to do its work and ask the questions the Cook Government won’t.

FINALLY ACTION ON AVIATION COMPETITION, NOW LET THE ACCC DO ITS JOB

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SENATOR THE HON BRIDGET MCKENZIE SHADOW MINISTER FOR INFRASTRUCTURE, TRANSPORT AND REGIONAL DEVELOPMENT LEADER OF THE NATIONALS IN THE SENATE SENATOR FOR VICTORIA SENATOR DEAN SMITH SHADOW ASSISTANT MINISTER FOR COMPETITION, CHARITIES AND TREASURY SENATOR FOR WESTERN AUSTRALIA 8 November 2023 Media Release FINALLY ACTION ON AVIATION COMPETITION, NOW LET THE ACCC DO ITS JOB The Albanese Government has been dragged kicking and screaming to reinstall ACCC monitoring of the aviation sector. In response to a Private Senators Bill tabled by Coalition Senators Bridget McKenzie and Dean Smith, the Senate has been informed the Government will today, finally, send a letter of direction to the ACCC to reinstate the monitoring, 23 days after it was announced it would. Since the Albanese Government backflipped on its decision to scrap the ACCC monitoring 3 weeks ago there has been crickets with no direction given by the Treasurer to the ACCC to hit go on the monitoring despite the ACCC Chair, Gina Cass-Gottlieb, telling a recent Senate committee it’s ready and waiting. Senator McKenzie said the Albanese Government chose to forgo competition monitoring into what is one of the most consolidated industries in Australia, which was admitted to in the Government’s Green Paper. “Only after the aviation Senate inquiry made the recommendation to reinstate the monitoring did the Government decide to backflip on its decision,” Senator McKenzie said. “But making an announcement is one thing and taking action is another and this is where the Government continues to fail. “The ACCC is on record that it is ready to re-establish the monitoring so there is no excuse for the Albanese Government to continue dragging their feet on the matter.” Senator Smith said Labor’s delay on restoring ACCC monitoring, at a time when Australians are struggling with a dramatic rise in the cost of living, has been unconscionable. “Air travel in Australia isn’t a luxury – it’s a necessity. There can be no justification stifling oversight in an industry which is uniquely central to economic and social life in Australia,” Senator Smith said. “While it’s clear that the Albanese Government prefers symbolism over substance, the Coalition had at least hoped that sending a small note to the ACCC was within the competence of Jim Chalmers. “Like the Year 12’s studying for their exams across Australia, my advice is for the Treasurer to put his phone on silent, focus on the task at hand, and ignore the calls and texts from friends – in his case, the government relations team at Qantas, whose messages Labor has found so impossible to ignore in the past.” Senator McKenzie said the ACCC monitoring needs to recommence immediately, especially given the Qantas group, including Jetstar, cancelled over 1,000 flights in September and a further 7,084 flights were delayed by more than 15 minutes, inconveniencing tens of thousands of Australians. “The fact flight cancellations and delays remain at excessive levels show the Albanese Government is not willing to tackle Qantas to fix the problems in the aviation sector. “The Government is more interested in blocking a Senate inquiry from asking questions to former Qantas chief executive Alan Joyce than it is in keeping airfares down for Australian families and business,” Senator McKenzie said. “Given Qantas’ appalling Annual General Meeting last week there’s much more work to do on the behalf of Australian travellers. “If the Minister continues to delay implanting recommendations from the aviation select inquiry the coalition will continue to do the work for her so Australians can have a more competitive, reliable, and safe aviation industry. “The Albanese Government needs to stop running a protection racket for one airline and start listening to the needs of the travelling public,” Senator McKenzie said.