utegate
23 Jun 2009
These Empty Scandals Are The Real Scandal
The 'Utegate' affair wasted our time, robbed real issues of oxygen, and further eroded faith in our system. Now, while Turnbull's paying for it, many others are guilty too, writes Ben Eltham
"Resign!""No, YOU resign!"
"No, I won't."
"Well I won't either."
And that, pretty much, is all the OzCar, or "Utegate", affair is about.
Although it features dramatic Senate Estimates testimony, a forged email, reciprocal calls for resignation and some extraordinarily vicious and emotional parliamentary debate, not to mention a protagonist with a name out of a Dickens novel giving a performance out of an Artaud play, the OzCar debate is not about anything as real as actual policy. It's not even about integrity. It's about tactics. In other words, it's not really about anything substantial at all.
But tactics and the cut-and-thrust of parliamentary attack and counter-attack seems to be what most politicians and political journalists care about in this country. For the media, it's politics as a football game, complete with armchair coaches and half-time analysis. For both Labor and the Opposition, it seems, this affair is evidence that politics is really about manipulating the political process, rather than about the policies you propose to implement. The result is that in a week when emissions trading legislation is to be finally voted on in the Senate, Australia's legislature and a large part of its senior public service have been consumed by a circus.
Let's go over the facts. When the global financial crisis hit the international automotive industry hard last year, car dealers found they were suddenly unable to secure finance for their show-room vehicles. In parallel with his other — surprisingly successful — efforts to keep the Australian economy from collapsing, Treasurer Wayne Swan investigated policies to prop up Australian car dealerships with Government finance guarantees. The Government decided to investigate setting up a $2 billion fund for this purpose, a so-called "special purpose vehicle" which would be run out of the Treasury department for the purposes of guaranteeing finance to motor dealers.
Ipswich car dealer John Grant heard about the scheme. A friend of the Prime Minister and the donor of one clapped-out Mazda ute to his local election campaign, Grant approached his local MP, Bernie Ripoll, who referred the matter on to the Treasurer's office. Grant's case was then raised by members of Wayne Swan's staff with Treasury public servants — including the now famous Godwin Grech — who were putting together the OzCar program. Grant's name was apparently specifically mentioned by Grech in a meeting between Treasury officials and Ford Credit.
No money was ever dispensed. In fact, OzCar has not even been voted for by Parliament. But the Opposition thought it smelled a rat. Apparently, Malcolm Turnbull was aware of the existence of an email from the Prime Minister's Office, which would implicate the Prime Minister in pressuring Treasury to arrange finance for John Grant. Liberal Senator Eric Abetz determined to question Treasury about the matter in Senate Estimates hearings.
Last Friday, the unfortunate Godwin Grech was called to appear before Estimates, where he gave his now infamous testimony, complete with stuttering answers and riveting existential anguish. Grech claimed that he was under the impression that Grant was an important person, not just your average constituent, and that this matter was of significant interest to the Treasurer. Grech also said he might be wrong, but that it was "recollection" that he had seen an email — somewhere, somehow — from "the PMO" about the matter in question.
In the wake of Grech's testimony, which looked very bad indeed on Friday night television, Turnbull called for Wayne Swan and then Kevin Rudd to resign. Whether it was wise to do so, it certainly pushed the scandal into overdrive. By Saturday, the BBC and major news outlets globally were reporting the resignation call as major news. The story of course dominated the Australian news media over the weekend.
So began the hunt for the "missing email", first leaked to Steve Lewis from The Daily Telegraph. Turnbull arguably alluded to it in his strange conversation with Andrew Charlton at the Mid-Winter Ball. The Prime Minister and Treasurer sent staff scurrying back to their email servers to scour their records for it. Nothing turned up. The Australian National Auditor and the Federal Police were called in.
And then it all unravelled. The Australian Federal Police raided Godwin Grech's house yesterday, and quickly determined that an email on his personal computer was indeed the email in question — and that it was forged. The email was a fake, just as Kevin Rudd said it was.
Suddenly, Malcolm Turnbull's own position looked grave. The Opposition Leader had pressed his attack too far. Now everyone realised he had done so with falsified evidence. Last night, he was forced to admit he had never seen the fake email. This morning, he was forced to admit Rudd had no case to answer.
The scale of the Opposition's overreach is staggering. On the basis of little more than a report of an email and one bad afternoon in Senate Estimates, Turnbull and his front-bench had called for the Prime Minster and the Treasurer to resign. The Government responded by calling for Turnbull to resign. Needless to say, that won't happen either.
It's worth discussing the Westminster convention of resignation briefly. In British politics, and in ours supposedly also, ministers who mislead Parliament are supposed to resign from their appointments. Of course, this rarely happens. In fact, it hasn't occurred in Australian Federal Parliament in the last generation. Whether or not they actually lied, Peter Reith and Alexander Downer certainly "misled" Parliament over the children overboard and AWB scandals when they were the ministers for Defence and Foreign Affairs respectively. Both relied on weasel words and bureaucratic denial to tough it out. Neither resigned.
Wayne Swan's misdemeanor, if he even did commit one, is far more minor. His contention that John Grant didn't receive any "special treatment" is essentially true: Grant received no more attention than countless other party donors, big business lobby groups and special pleaders of all stripes receive every day in every government department in the land. At a time when billions are being given to foreign-owned car corporations, and billions more are promised to polluting fossil fuel companies, John Grant got his request followed up with a few emails. He hasn't received a cent.
That doesn't mean this scandal hasn't hurt the Government, and particularly Swan. It has. But it has hurt Turnbull and his credibility far more. This kind of scandal blackens the name of all politicians. But it makes Turnbull in particular look grubby and cheap. It's the sort of thing that reinforces the view of many voters that politics is a game played by shouting men over trivial matters. In sum, it's bad for democracy.
The media is equally culpable. Although there are outstanding exceptions like the Australian Financial Review's Laura Tingle, as a group the Canberra press gallery seems unwilling — perhaps unable — to engage with policy particulars. This makes them all the more susceptible to reporting politics as a horse race or sporting event. The glee with which political journalists pounce an any "scandal" and attach the suffix "-gate" to it is a perfect example. Journalists for the Murdoch newspapers are merely the most visible enthusiasts for the trend; the flaw is collective and widespread.
For Turnbull and the Liberals, this is a disaster. If he had simply expressed concern and argued for a thorough investigation, Turnbull would be insulated from the blow-back he is now experiencing. It's all the more puzzling given that the Coalition was starting to gain traction with its relentless attack on Government spending and debt, and had scared Labor enough to provoke personal attacks against Turnbull's previous career as a lawyer and merchant banker. It's tempting to conclude that Anthony Albanese is right when he argues that Turnbull has opted for the "low road".
What would principled conservatism in this country look like? It might start by acknowledging (as Turnbull has but his broader party has not) the scientific reality of climate change. Then the Liberals could work to shape a policy response framed by the principles of small government, economic freedom and personal liberty that they hold dear. For instance, the Opposition could be working to develop an emissions trading scheme far more transparent and less distorting than the one Labor has given us. A principled conservative opposition might also develop a suite of alternative policies to achieve Liberal goals, and a realistic alternative budget that could pay for them.
Unlike a nasty smear campaign, all this requires hard work. Until the Coalition is ready for this hard work, it will struggle to regain government.


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Thanks for this. It’s what I’ve been muttering under my breath all morning. Now back to the big issues.
"the principles of small government, economic freedom and personal liberty that they hold dear" - you really believe this Ben? You really think that is what the modern Howard-created Karl Rove-inspired Liberal Party is about?
And you might note that creating forged documents to damage opposing parties (the children overboard film in 2001, the Jacky Kelly’s seat flier in 2007, the "Green’s brochure" in 2004) is becoming a SOP of this modern Liberal Party, and Turnbull took to it like a duck to water - so much for him as the leader of "principled conservatism". So this is a bit more serious as a harbinger of the future than the nonsense about what Swan did.
After watching The Insiders devote a good 20 minutes to a semiotic debate re the deeper significance of Rudd’s ‘fair shake of the saucebottle’ comment, I can no longer tell what counts as ‘scandal’ and what doesn’t.
Politician’s nonsense feeds commentator’s nonsense, and so it goes.
I loved it. I know we should be thinking about other, more important, things but there was something rivetting about watching the self-inflating Mr Turnbull huff and puff his way through this whole affair. He really takes the ‘r’ out of stuffed shirt.
It must have surprised the Coalition to see influence peddled for a mangy ute. At least when Michael Wooldrige screwed the Australian public he got a cushy job with the AMA. Even Peter Reith got to get rid of his insufferable son while he travelled the globe communicating with his slack-jawed family and friends on our dollar.
The AWB wheat scandal, children overboard, they were scandals you could dig your teeth into. Years of political advantage, millions of dollars, these are the makings of a conspiracy. Only a desperate and idea-free opposition could even be bothered with a third rate car dealer who got absolutely nothing out of it.
douglas jones
Yes politics is about winning not for Australia, though some mighty say one cannot fly ones special visions when out of power. and doubtless the other ideas are wonderful, even if winning is power patronage and privilege.
You also I think do not allow for the pressure on the media. Research costs money, sensational trivia sells and the business of the media is a declining.
Then again I think awareness of the power of religious belief even quasi on the susceptibility of pride to be damaged by any evidence that maybe it is nonsense, is not taken into account. Such has happened with the market economy the hidden hand needs the wrist of government at least controlling direction.
So in the absence of being able to attack the economic strategy directly one can talk of debt creation and its dangers, particularly, for this can make fear like an Iraq atomic weapon. The fact that history indicates the preferred strategy after 1929 was for balanced budget, this was at the cost it is argued of deepening and prolonging the recession even if much greater deficit of war was needed to reverse the depression rather than the New Deal, can be ignored. The media is unlikely to give this space and the public can be assumed to be unaware.
Down grading of democracy? One might ask what democracy when it has just been demonstrated that media and business plus politician/public servant can remove regulation, ignore signs of trouble indeed proclaim the system in fine fettle with hardly an economic voice crying look out.
Interesting,if depressing, article, it seems as well as politicians, we get the journalists we deserve. I can understand the Murdoch minions attempting to stick something on a Labor Government,why did more reputable news services bother to report on the "scandal"? Are the Liberals so desperate,or lazy,that they’re prepared to grasp at any straw?
I loved watching the self-inflating Mr Turnbull huff and puff his way through what must be the least rivetting scandal in Australian political history. That man really takes the ‘r’ out of stuffed shirt.
The AWB wheat fiasco, children overboard, they at least had millions of dollars and years of political advantage involved. Malcolm looks like the ex-barrister twit he is with his weak about a guy who got the government to deliver absolutely nothing for the princely gift of a mangy old ute.
At least Michael Wooldridge, when committing treason against the Australian taxpayer, got a cushy job with the AMA out of it. Hell, even Peter Reith got to rid himself of his insufferable son while he travelled the globe communicating, on our dollar, with his slack-jawed family and friends.
If it transpires that Grech is a Liberal Party spook rather than just a spooky individual it will make my day. They are used to dirty tricks after all. Don’t forget the false political flyers distributed by John Howard’s dim-witted protoge, Jackie Kelly and her brilliant husband.
Turnbull has shown he can’t handle the big issues. His policy response to the GFC was all over the place like a photo of his dog’s breakfast on his cheesy website. His attitude to climate change changes regularly. Despite this he has never sucked as much as he does right now.
If Kevin really loves Peter as much as he says he does, then why dosen’t Kevin dump Wayne and shack up with Peter?
I think Ben has written a fair and balanced article and expresses what many of us feel, a great sense of depression. It also appears that Federal Parliament (like the State ones) is a club. The characters in the club spend years abusing each other for doing exactly what they themselves would do (or have done) when in power. When they leave they are set for life, on pensions and allowances the rest of us can only dream of. Those who have clawed their way to the apex of the dirt pile (prime ministers) get offices, staffers, security detachments and lots of other things for the rest of their lives. We, the mug punters, pay for all this. One useless politician who is leaving shortly was eulogisied by the lot of them last week. I’m referring to "Saint" Peter - probably the laziest treasurer we’ve had. This week we have been subjected to a most unedifying spectacle in a "club" inhabited by a bunch of hyprocites!
I freaking loved it! The self inflating Malcolm Turnbull takes the ‘r’ out of stuffed shirt.
How I miss the old days when scandal was scandalous. Instead of a mangy ute Howard ministers were screwing around with vast amounts of cash and defense documents. At least Michael Wooldridge got a cushy job with the AMA after he knifed the Australian people. Even Peter Reith got rid of his appalling son whilst he was jetting around the world communicating on our dollar with his slack-jawed family and friends.
By comparison the purchase of exactly nothing for a ute, the sort of ute that deserves the level of attention Rudd and Swan gave John Grant, is piss all. Only an ex barrister could pretend to get worked up over this matter. Only a desperate Coalition could think it would work.
At the outset of the GFC Malcolm Turnbull was all over the place like a photo of his dog’s breakfast on his cheesy website. His response to climate change changes even more than the climate, depending who he is talking to. Now he gets worked up about a trivial matter. Why? Because he saw the possibility for personal power. Weak. Weak and stupid.
Excellent summation by Ben Eltham.
What an utter disgrace when there are so many VASTLY more important things to discuss in Parliament and in the media (e.g. Australian complicity in horrendous US Alliance war crimes and man-made climate disruption).
The following letter is being sent to media and MPs but no doubt will not see the light of day in "look the other way" Australia except in "alternative media".
Dear Sir/Madam/etc,
Partisan debate rages in Australia over how many e-mails were sent by government officials in support of a pro-Labor car dealer. VASTLY more important is pro-coal, pro-war Rudd Labor Government complicity in US Alliance war crimes (9-11 million excess deaths in the Bush, now Obama, wars, 1990-2009) and worsening climate genocide (global warming currently contributes to 16 million excess deaths annually and is set to kill 10 billion non-Europeans this century).
Top UK climate scientist Dr James Lovelock FRS has estimated that fewer than 1 billion people will survive global warming this century, this constituting a prospective climate genocide that will kill 10 billion non-Europeans including 6 billion infants, 3 billion Muslims, 2 billion Indians and 0.3 billion Bangladeshis.
Australia is the world’s biggest coal exporter and a world leading greenhouse gas (GHG) polluter. Thus Australia’s domestic and exported “annual per capita GHG pollution” is 54 tonnes CO2-equivalent per person per year – 10 times that of China, 25 times that of India and 60 times that of Bangladesh.
The must-read Synthesis Report of the March 2009 Copenhagen Climate Change Conference concluded “inaction is inexcusable” - yet pro-coal Rudd Labor policy means that Australia will INCREASE its domestic and exported GHG pollution to 80% above the 2000 level by 2050.
Yours sincerely,
Dr Gideon Polya
Macleod, Melbourne, Victoria 3085, Australia
PS for a Summary of the Copenhagen Climate Change Conference Synthesis Report see: http://sites.google.com/site/yarravalleyclimateactiongroup/synthesis-rep… ; see also “Australia’s “5% off 2000 GHG pollution by 2020” endangers Australia, Humanity and the Biosphere“: http://sites.google.com/site/yarravalleyclimateactiongroup/australia-s-5… .
Peace is the only way but Silence kills and Silence is complicity.
The Fairfax media has really become `tabloid’. The Age sensationalised this essentially trivial affair without seeming to consider the email was fake, perhaps from the `dirty tricks’ cell of the Liberal Party. A party with a record in this area. Which brings to mind the `scandal’ of security personnel from the Defence Department investigating their previous Minister. The Age seemed to initiate that issue by quoting an anonymous defence official, implying that the Age journalists involved were `super sleuths’ with outstanding sources. However, I think it was later revealed, in small print, that their source was uncorroborated and was yet another, probably fake, email.
Surely this is the end product of our aggresive two party system where political point scoring is of much more value than decent legislation on such "Insignificant’ stuff as global warming or financial global collapse.
Rudd and Turnbull are like two little boys squabbling.
I did wonder, before I heard about the specific email being a fake, whether it was all a plot to bring down the non-rotating but very bullheaded Turnbull. He was guaranteed to make a fuss!
Nice one Ben, Dr Dog and the other Doctor!
The desperate and over-ambitious banker and CEO of the children overboard liberal party, has gone too far.
Better perhaps he keeps his position, as he seems to best symbolize the desperate greed and corruption of the liberal party.
As if a ute, even if Labor was guilty is anything on the Cheney-Howard Hillsong Christian M/Right war-crime refugee razor-wire connection.
And if this is a matter of integrity then let me illustrate another story that is forgotten or rather not so obvious, yet damning to the liberal party and those who continue with their thieving policies.
….A digger who fought in World War Two has told me that the only thing between death and survival for our troops back then in Timor were the Timorese children that bravely moved and set up bases for them from the encroaching Japanese troops…
In the end the soldiers were saved and the children massacred!
Only for howard and his opportunistic thugs to kick them in the teeth to syphon their nations oil to best destroy that poor Island’s economy that could use even a snippet of that cash to educate its children.
Verily, what a damn disgrace!
Australia, slowly but surely seems to be waking up to the unwholesome liberal party corruption, perhaps no one needs to resign, perhaps Costello will have his revenge and his brothers conscience, perhaps Australia too will do them in at the ballot!
If Justice wins, it’ll be a thrashing!
Yep,
Malcolm took the bait alright; hook line and s(t)inker,(there’s that t out of shirt again)
However, it may be "children overboard" by the libs, but unless Rudd and co do something about all the rats leaking stuff and concocting it too, from the bureaucracy; I’m afraid their reforms (some of them actually long overdue and necessary) will come to nought.
And kiddies it will be another governemnt overboard. Remember it is governments that voted out, not oppositions voted in.
Turn(bull) can turn and spin all he likes.
At the end of the day, the gov’t has to answer to the people not an obstructive opposition, however unpalatable. I remember another Malcolm with even less charisma than this one brought down a much better gov’t than this current one too.
Aided and abetted by the same conservative elements and the knee jerking media, this scenario may again arise. In fact inevitably will.
Cheers, Oli
"this affair is evidence that politics is really about manipulating the political process, rather than about the policies you propose to implement."
This is what you get with representative democracy. The only way to change is to implement "Direct Democracy" You will immediately improve this country’s standard of journalism. The ABC is as woeful as any tabloid.
Will the Federal Police investigate the relationship between Senator Eric Abetz and Mr Godwin Grech? There appeared to be a certain amount of role playing in the "dramatic Senate Estimates testimony". Theatrical in hindsight?
Wayne Swan stumbled and fell over the simple question of exceptional assistance to Kevin’s mate. He is wearing more "egg" than Malcolm who has succeeding in turning the government’s offices upside down and sowing the suggestion of more "moles" in the Public Service.
Agreed,this affair is just another example of copious quatities of hot air expended on SFA.
However,it is indicative of one of the major problems in our political system.This is gifts/donations to political parties or directly to politicians.Like paid lobbyists this is a scandal and until it is cleaned up we will keep seeing this time wasting circus instead of our elected representives addressing real and important issues.
But,like voting system reform I don’t see any meaningfull action coming from either of the major parties.They have too much to gain from defending business as usual.
While the minor matter isn’t worthy of the column inches it got, the activity of moles within minsteries is worthy of examination.
I seem to remember that Rudd kept his promise to avoid the ‘night of the long knives’ that occurred when previous governments gutted the other party’s key workers in departments.
At the time this was regarded as a positive and mature approach. It shows the character of Malcolm and the Liberal Party that they continue to cultivate spies, who in the case of Grech seem to have been under such pressure to get some dirt on the government that he fabricated evidence.
Turnbull has now tried to blame the results of his clumsy cloak and dagger gameplaying on Wayne Swan. He has forgotten that to use intelligence one must use intelligence.
But all thats OK, because I love seeing him get his pinstriped arse kicked.
Revilo: the other Malcolm had history on his side, i.e. the ascendancy of the now defunct Chicago School.
The liberals now either have decline or radical change on their side: either way and this point is crucial: could you ever trust them?
With a merchant banker in charge and a cohort of lawyers, the coalition is attempting a hostile takeover when they should be putting up policies.
Sure its about tactics but not just that.
Firstly in this process Australians have learned a lot about the character and modus operandi of the man who wants to be President of the Australian Republic (and his mates), and its enough to make me shudder.
Secondly its been a chance to think about the politicisation of the public service and other government instrumentalities, which went much further and deeper under Howard. We still live with that, as this episode demonstrates. Winding it back is part of a return to vibrant democracy in Australia.
Yet, can policies alone diminish their inherent hostility?
Perhaps they should take, the road to Damascus?
Dev’s Advocate… Chicago school?? All I remeber is that Fraser lost his dacks in a motel somewhere in the US in the end, and the rest is history.
Turnbull won’t get anywhere near the job because he can’t keep his shirt on. ha ha ha Oli
"Malcolm took the bait alright; hook line and s(t)inker,(there’s that t out of shirt again)" Shir?
Shir nuff.