Helen Coonan (NSW, Liberal Party, Minister for Communications, Information Technology and the Arts) Share this | Hansard source

Thank you, Mr President. I am sure it is highly relevant to the question for the Senate to be aware of the arrangements that are likely to apply as these investigations are undertaken. The law imposes heavy sanctions on persons who enter into agreements or arrangements that aim to avoid payments to employees that they would be entitled to in a liquidation. A person can be liable for a penalty of up to $110,000 or 10 years imprisonment for such actions. The legislation enacted by this government in 2000 sends a very clear message indeed to corporate employers that deliberate avoidance of the obligations to employees is not acceptable.

It is important that one not leap to conclusions, and that you allow ASIC to carry out its proper function to investigate what media reports suggest, and that is—and this is a suggestion—that the administrator has identified possible improper transactions by the company in the period prior to the company’s entry into administration, including a possible transfer to a related entity. That is not proven; that is rumoured. It is entirely appropriate that this matter be investigated and that I not be invited to comment, on behalf of the minister, on the substance of the allegation or indeed on the process whereby it will be investigated. It is being attended to.