Jacinta Collins (Victoria, Australian Labor Party) Share this | Hansard source

Well, that might be your view, Senator Bernardi, but let us have a look at the issues that are highlighted here. The ABC Learning business fails most of the government’s tests, I think it is fair to say. For instance, Eddy Groves’s brother-in-law has had more than $100 million worth of construction and maintenance contracts from the company, most of which have not gone to tender. There is a stockbroking firm—it is called Austock—which has backed ABC Learning ever since it floated at $2 a share back in March 2001. Austock has made almost $100 million in fees backing this company all the way. Bill Bessemer from Austock sits on the ABC Learning board and Eddy Groves at one stage bought a 4.2 per cent stake in Austock, so you have transactions and relationships going backwards and forwards. You have got three executives on the board and you do not have a clear majority of independent directors.

Larry Anthony, the children’s minister in the Howard government, joined the board. The former government gave Eddy Groves’s company $1 million a day in subsidies for its childcare operations, creating an unprecedented company market share in the world. Five months after he stopped being Minister for Children and Youth Affairs, Larry Anthony jumped onto the board of ABC Learning, taking all the knowledge with him. It is those types of situations, plus hundreds of thousands of donations to the Liberal Party, the National Party and those types of things, which have never been a particularly good look for the company. That is when Tony Jones then went on to describe Eddy Groves: ‘He was a child of the Howard government, wasn’t he?’

I am very surprised that, under those circumstances, Mr Turnbull made the comments that I said I would eventually take Senator Bernardi to. These were the comments of the Leader of the Opposition, Malcolm Turnbull, on 8 November 2008:

The reality is an unprofitable business—

regarding ABC Learning—

cannot be sustained indefinitely, so there is clearly a concern about the level of, and the tenure, the extent, of government support.

It looks like this contingency plan, this support, was put together very much at the last minute so I’m a little sceptical as to how much of a plan they really had.

Well, we have a plan to maintain all of the centres for two months to get families through till Christmas. It is a very clear plan. We have a plan to map out community interest in comparison to what existing services are prepared to do to maintain services. We have a plan to ensure child care remains available to these families. We have much more of a plan in our national agenda for early childhood than the former government ever had, apart from putting themselves on boards once they leave this place. (Time expired)