Senate debates
Tuesday, 15 July 2014
Questions without Notice
Employment
2:14 pm
Eric Abetz (Tasmania, Liberal Party, Minister for Employment) Share this | Hansard source
The referral of this matter to ASIC should in no way interfere with the work of any liquidator who might be called in, and according to the FEG legislation—which was Labor legislation—under which we are operating we will do all that we can to ensure that prompt payments are made. There are procedures to be gone through, such as that the company is liquidated as opposed to just being put into administration. So there are those technical issues that have to be worked through. But you can be assured that we, as a government, will seek to do everything we can through the department to ensure that workers' entitlements, as they fall due under FEG, will be made available promptly in the event that what we suspect—namely, the company has not made provision. Of course, in those circumstances the taxpayer will come to their aid.
William Boeder
Posted on 17 Jul 2014 7:11 am
It seems to me that this Senator is rather eager to have FEG carry the can for this outfit that had the former Prime Minister John Howard's brother, Stan Howard as a former chairman that had this company's employee entitlements payed by special legislation enacted solely for this purpose.
In the year 2000 that amount was $11 million dollars.
Then some 11 years later the Victorian State government poured in $2.9 million.
Then we now find that since that time, (during the interim period of 11 years) that this same textile company had amassed $18 million in new liabilities.
So now this same outfit had recently became liquidated.
By the way this same company was then bought by its principal shareholder Mr Phillip Bart and former Chief Executive Geoff Parker for $1-00.
So all of a sudden we now have a new shell company owned by 2 of the former principals of the then Brucks Textiles Manufacturer, who bought this same company for I measly dollar.
Thus there is no money in the till to pay entitlements to each of the suddenly sacked employees.
Now I smell a large stinking rat among the wheeling and dealings of a company that had a history of hosting a number of Federal government supply contracts.
I believe some people would call this latest development and its begging hand being thrust toward Senator Abetz, 'a copy cat arrangement' that saw this company previously gain by this same 'begging' cap in hand run to the government for financial aid.
All of a sudden this Senator wants to assure everybody that FEG can easily be tapped for $3.8 Million dollars to pay for the employee entitlements again.
Remember this is only some 10 or more years since its original engagement in this tactical manoeuvring.
The rhetoric of this Senator sounds as though he is in total agreement despite the history and the shady goings on with its former and suddenly now brand new company principals. So much for the forensic skills of Senator Abetz, far easier and better to lean on the poor old Aussie taxpayer than bring the rascals to account.
Fancy John Howard as Prime Minister being the individual that put in place the precedent for this bailout routine or (strategy) for this turgid textile manufacturer.
I would hope that ASIC is given sufficient time to investigate this matter, lest it trip over itself again as it did when confronted by the Commonwealth Bank 'divisional' Financial Advisory Services frauds and falsities operations, (along with whatever other fealty abnormalities.)
Fancy the Commonwealth Bank Executive Board not knowing what was going on in this highly profitable Division for some 10 or so years?
Maybe there are a few Rats running around inside the Commonwealth Bank Headquarters, of course ASIC being the all powerful Corporate Regulator are yet to sniff out the CBA rats in the rafters, despite all the ASIC employee aid given to clean up a magnitude of deficient CBA customer files at some recent time.
I would like to take this opportunity to commiserate with this Senator for not being able to have Tasmania's Heritage Listed Forests freed up for the State of Tasmania's cut-throat wood-chippers.