Off The Record April 21, 2018: News and scuttlebutt from South Australia’s corridors of power
THIS week; the behind-the-scenes operators jostling for supremacy in the $13.5b Santos takeover bid, why Port Adelaide has not found a joint major partner to replace Renault, the latest public service appointments and Jay Weatherill’s legal stoush with a former opponent.
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In this week’s Off the Record, we look at the behind-the-scenes operators jostling for supremacy in the $13.5 billion Santos takeover bid, look at why the Port Adelaide Football Club has not found a joint major partner to replace Renault, look at latest public service appointments and Jay Weatherill’s legal stoush with a former opponent. Warning, this week’s Off the Record may also contain gloating.
Inside the $13.5 billion Santos bid
SANTOS takeover aspirant Harbour Energy has gone straight for the big guns when it comes to lobbying for its $13.5 billion tilt at Adelaide’s biggest company.
Ian Smith, whose past client list is a who’s who of national heavy hitters, is advising Harbour chief executive Linda Z. Cook, one of the globe’s most powerful oil and gas player and a former contender for the top job at Royal Dutch Shell.
Smith has an impeccable pedigree, having been a sounding board for former Victorian premier Jeff Kennett, was chief executive of one of the largest PR firms in Australia, Gavin Anderson and Co, and was also a close adviser to former Wesfarmers chief executive Richard Goyder. Smith, right, is also married to former leader of the Australian Democrats Natasha Stott-Despoja, also right.
The avid cyclist is being aided in his endeavours by Brett Clegg, a former News Corp Australia and Fairfax executive.
Smith, who had dropped off the South Australian lobbyist register in recent years to focus on other interests, has refreshed his listing, lodging his list of clients with the State Government on April 16.
He has only two clients – Santos, and a little outfit called GFG Alliance – the new owner of the Whyalla steelworks which is owned by global steel magnate Sanjeev Gupta.
Also tied up in the Santos bid is former Santos and OZ Minerals executive Damon Hunt, who is working on behalf of Santos’s major shareholder, Chinese company ENN.
Hunt has a similarly storied background, having been an executive with Heathrow Airport, media adviser to former SA federal Liberal senator Amanda Vanstone when she was John Howard’s immigration minister, group executive for public affairs at Santos and, more recently, a senior media adviser to Prime Minister Malcolm Turnbull.
Vanstone retains significant influence — Premier Steven Marshall dined with her at Tasting Australia last weekend and tweeted a picture
Hunt and Smith are likely to be in close communication in coming months with ENN’s support of the bid likely to be crucial to its success.
It’s rumoured Smith is once again set up in the East End of the city, so keep an eye out for the pair chugging lattes at hey Jupiter or thereabouts.
OFF THE RECORD: THE SA POLITICS PODCAST
Goalposts shift in sponsor power plays at Port
PORT Adelaide has drawn some more cash out of key sponsors but is lacking the second major partner it expected to unveil late last year.
Last September, Port revealed the end of its five-year partnership with Renault (initially worth at least $1.5 million in a three-year deal that was extended twice). At the time, Port Adelaide chief executive officer Keith Thomas said talks were already being held with “a number of prospective new joint major partners to join OAK PLUS in 2018” and he anticipated an announcement later in 2017.
But Port’s website list of corporate partners now lists OAK PLUS as the sole major partner.
So we asked for clarification, which Thomas provided: “OAK PLUS are currently Port Adelaide’s sole major partner with a main focus on promoting their brand into China,” Thomas told Off the Record.
Thomas said OAK PLUS had increased their partnership with the club to maximise their exposure into China, where Port hopes for a TV audience of eight million for its Shanghai game.
The brand is now the club’s jumper sponsor, as modelled above by defender Tom Jonas.
“As well as OAK’s increased commitment, Tyrepower last week increased their partnership with the club to now be the official Coaches Partner, while Swan Wines also announced a partnership extension within our China Engagement strategy, ” Thomas said. Asked to clarify whether Port was in a better, worse or neutral financial position than if it had the planned two major partners, a club spokesman said the OAK PLUS deal was commercial in confidence and declined comment.
AN attempt by ex-premier Jay Weatherill to settle his defamation action against independent candidate Vince Scali has fallen at the first hurdle.
Weatherill (below), who is believed to be recovering from his bruising election campaign in sunny Doha, sent a letter to Scali this week through Bourne Laywers.
Scali, who adopted the name Hadd Enuf, painted up his van before the election campaign calling Weatherill a “liar” among other things.
A legal letter followed, but that didn’t prevent Scali using the “L” word again on election day.
Scali ran as an independent in Weatherill’s seat of Cheltenham but picked up only 337 votes, 11,324 behind the ex-premier.
A letter on behalf of Weatherill offered to withdraw any defamation action on the condition the “liar” allegation is retracted, a private apology is made and Scali pays $1500 in legal costs.
But Scali remains unrepentant, telling Off the Record he would not be accepting the offer.
“I said to him ‘bring it on’, I have nothing to lose’’.
Weatherill’s lawyers did not respond to requests for comment.
First with the public sector news
HERE at Off the Record, we like to be ahead of the game.
So we thought we’d draw attention to one of our recent forecasts. Almost exactly a month ago, we predicted outgoing SA Health chief executive Vickie Kaminski’s replacement in the $551,145 job would be Chris McGowan.
He was, at the time, the chief executive officer of Silver Chain, an in-home health and aged-care specialist and operator of South Australia’s Royal District Nursing Service.
On Thursday, Health Minister Stephen Wade, in a circular to SA Health staff, announced Dr McGowan as their new chief executive.
As well as highlighting McGowan’s leadership of Silver Chain, Wade drew attention to his previous stewardship of Noarlunga Health Service and role as executive director of population and primary health care for the Southern Adelaide Health Service.
Premier Steven Marshall issued a press release formally announcing McGowan’s appointment.
In other public service news, we can reveal Christine Bierbaum has returned to the Premier and Cabinet Department as executive director machinery of government.
Bierbaum was previously at DPC from 2012-15, where she was executive director, strategic policy, Cabinet Office and then executive director, Business and International Development.
Like Treasurer Rob Lucas’s chief of staff Gino DeGennaro, she was thought to be out of favour with the previous Labor regime but has made a return.
Euro bag of fruit gives taxpayers Stockholm syndrome
TRAVELLING the world on the taxpayer coin can be an arduous, dangerous process. You never know when disaster may strike and you have to reach for the government credit card to pull you out of trouble.
Take the case (no pun intended) of Matt Neagle, until recently an adviser to the well-travelled former Trade and Investment minister Martin Hamilton-Smith.
Last September Neagle was on Hamilton-Smith’s trek through Europe with 25 delegates on a “business mission’’.
Unfortunately, somewhere between London and Amsterdam, Neagle’s bags went missing.
It happens.
But by the time Neagle was in Stockholm, the bags still hadn’t turned up and airline KLM was not promising they ever would.
“Mr Neagle was advised that his luggage could not be traced and there was no certainty that it would be recovered at all,’’ a report published on an SA Government website says.
Not ideal when you are trying to impress various European business types.
Neagle took some advice and headed to Ahlens, a department store in a Stockholm shopping centre to replenish his supplies.
According to credit card statements, it cost Neagle $2215.60 to buy a suit, shirt and shoes.
A further $469.04 for luggage and $89.29 for toiletries. But the suit was no Zegna or Hugo Boss but a “stock-standard’’ affair.
“It matched what I had previously,’’ Neagle said.
“I was stuck in Stockholm with no clothes and no toiletries, it was not ideal.’’
However, there was a happy ending, for both Neagle and the taxpayer. KLM would find Neagle’s bags, albeit some days later.
And the bill to the taxpayer was also reduced.
“The expenses are being recovered via the Accident and Health International underwriting agency,’’ the insurance claim reads.