Bob Day’s Kent Town office ‘deal’ being referred to High Court after he formally quit from Senate
A SHOCK High Court threat could force an election vote recount and lead to Family First’s Bob Day being replaced in the Senate by a One Nation candidate.
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A SHOCK High Court threat could force an election vote recount and lead to Family First’s Bob Day being replaced in the Senate by a One Nation candidate.
In a bizarre series of events on Tuesday, Mr Day formally tendered his resignation, only to have Senate President Stephen Parry raise questions over his position.
Labor’s Senate Leader Penny Wong said it raised the question of whether Mr Day was “validly elected to the Senate” in the first place.
The questions relate to Mr Day’s Kent Town electorate office, which he owned when he was elected in 2013.
The Government at the time told him it was not appropriate because it would mean having a financial relationship with the Commonwealth. He agreed not to take any rent money.
In 2014, he sold the building to a friend’s business, Fullarton Investment, on “vendor finance” for $2.1 million. That means he lent the money to his friend to buy it, the friend paid it back in instalments, and the Commonwealth paid rent to the friend, Colin Steinert.
The Government will ask the Senate to refer the matter to the High Court as “a potential indirect pecuniary interest in a contract with the Commonwealth”.
“I am considering information which raises difficult constitutional questions relating to the composition of the Senate and I am seeking further advice before I put the matter before the Senate on Monday,” Senator Parry said.
Speaking exclusively to The Advertiser last night, Mr Day strongly rejected the assertion. “Absolutely not one cent has been paid by the Commonwealth to either me or any other company for rent or pecuniary matters. None. There has not been any money paid,” he said.
“The idea was the Commonwealth would pay rent to Fullarton Investments and then Fullarton Investments would make loan repayments to me.
“I had that checked out and was told there was no way it was pecuniary interest.”
This morning, in a text sent to the ABC, Mr Day called on “all MPs and Senators to immediately disclose whether they have any financial interest in any property or company that has a contract, lease or agreement of any kind with the Commonwealth. This includes Defence Service House, loans to or from companies that do business with the Commonwealth”
If the Senate agreed to refer the matter to the High Court and the High Court agreed it was a breach, it is likely the South Australian Senate vote would have to be recounted.
“What has been suggested is that Mr Day was never eligible to be elected in the first place, and you can’t resign from a position you’re disqualified from holding,” University of NSW constitutional lawyer Professor George Williams said. That would “most likely” mean a recount, he said.
That situation would probably elect the No. 2 on the original Family First ticket, lawyer Lucy Gichuhi, but it could also see the place go to One Nation candidate Steven Burgess — or a candidate from another party, including the Opposition.
Everyone was expecting a routine process to replace Mr Day — the executive would vote for a replacement (expected to be either his former chief of staff or state MLC Robert Brokenshire) and that nomination would be ratified by State Parliament. Yesterday Premier Jay Weatherill was sceptical that would happen.
“We’ll believe it when we see it. I’d like to be satisfied this is real and we’ll take some advice about what the next steps are,” he said.
Dennis Hood, leader of Family First in the State Parliament, this morning stood by Mr Day’s actions.
He told ABC 891 he had seen a document from the Coalition’s special minister for state at the time, that approved the arrangements around 2013-14.
“Not only were they aware of the arrangements, they approved them in writing,” Mr Hood said.
“Bob Day has never received a cent from the Commonwealth in this arrangement.
“He had never been paid rent for staying, using those premises whether directly or indirectly.”
Depending on the High Court outcome, Mr Hood said he had no concerns the party could find a casual vacancy, which would be decided by the state executive.
He said he hoped the Family First brand hadn’t been tarnished and that South Australians understood the events had been out of the party’s control.