Off the Record: Foley loses top job as Lib clean-out continues
IN this week’s Off the Record, a Labor luminary loses his job as the new Liberal government cleans house, more moving and shaking in the public service, the battle for Mayo heats up and the businessman who tried to outbid billionaire Gina Rinehart.
SA News
Don't miss out on the headlines from SA News. Followed categories will be added to My News.
IN this week’s Off the Record, a Labor luminary loses his job as the new Liberal government cleans house, more moving and shaking in the public service, the battle for Mayo heats up and who was the businessman who tried to outbid billionaire Gina Rinehart at a charity auction.
Not so super as Foley departs plum job
FORMER Labor treasurer Kevin Foley is taking a pay cut of almost $100,000 a year by ousting himself from the helm of the state’s multibillion-dollar superannuation fund.
Declaring the reality of politics is winners take the spoils, it is understood Foley sought out now-Treasurer Rob Lucas before the March 17 election and informally offered to quit as Funds SA chairman, should the Liberals win.
Foley formally contacted Lucas after the election and again offered his resignation from the board, which his longtime political opponent has now accepted, subject to an orderly transition.
Foley’s replacement, who will oversee public sector superannuation funds worth almost $30 billion, is expected to be named within weeks.
The treasurer from 2002 to 2011, Foley is the highest-profile casualty of a public sector overhaul triggered by the end of Labor’s 16-year reign.
Just days after the election, Premier Steven Marshall fired four high-paid State Government executives, including Department of Premier and Cabinet chief Don Russell, in a $2 million clean-out aimed at driving change.
By contrast, Lucas and Foley consulted each other before making formal statements when The Advertiser inquired about the future of the former Labor treasurer’s position.
Lucas said: “I think it’s very generous of Kevin to offer his resignation. I’ve thanked him for his services.”
Referring to Lucas as “Robert” as a mark of respect, Foley confirmed he had formally offered his resignation immediately after the March 17 election.
“Robert appreciated the offer and asked me to stay on until such time as we could have an orderly transition to a new person,” he said.
“I accept the reality of politics … to the winners, the spoils.”
Foley will continue to receive a parliamentary pension that has been estimated at $200,000 and work as a strategic adviser for businesses and as a property developer in Adelaide’s west.
Foley was appointed a director of Funds SA in August 2014 and ascended to the chairman’s role in late 2015 — an elevation that Lucas said at the time was not appropriate.
“I don’t have much of an objection to Foley being a member of the board, but I just don’t see his skill set meeting the requirements of chair,” Lucas said in early 2016.
“The (then-Labor) Government obviously places greater weight on the fact that he is a fellow traveller in the Labor Party.”
Lucas, who also was treasurer from 1997-2002 in a previous Liberal government, was Foley’s predecessor overseeing the state’s finances.
A union stoush triggered by former Public Sector Association chief Jan McMahon’s departure from the Funds SA board has resulted in Australian Education Union state branch secretary Leah York securing a spot, worth at least $40,000, ahead of current PSA boss Nev Kitchin.
The Advertiser was told the spot had traditionally been earmarked for the PSA but, in what was seen as a victory for gender balance, York won backing from key public sector unions.
Deckchair shuffling in government
IT’S not just former Labor treasurer Kevin Foley who’s on the move.
Gino DeGennaro, the newly appointed chief-of-staff to Treasurer Rob Lucas, is taking two months off to head to warmer climes.
The unpaid leave was arranged before Lucas anointed him early last month and, Lucas tells Off the Record, was a family arrangement he was happy to honour in DeGennaro’s new role.
His temporary departure comes ahead of a looming round of deckchair shuffling on government boards and public sector executive personnel changes.
It is understood applications are already being assessed for the Department of Planning, Transport and Infrastructure chief executive role, which was advertised on May 5. The successful applicant will replace Michael Deegan, one of four high-paid executives fired shortly after the Liberal state election victory on March 17.
In the wake of that bloodletting, Public Sector Employment Commissioner Erma Ranieri was appointed as acting Department of Premier and Cabinet chief executive, to replace Don Russell.
But her elevation was until around the end of the financial year, meaning a permanent appointment is likely to be revealed soon to enable a smooth transition. Ranieri is considered unlikely to stay on permanently, despite Premier Steven Marshall apparently being happy with her performance, because of the strong interest shown in the role.
DeGennaro has been replaced in Lucas’s office — for now — by Julian Robertson, who was a director within Treasury and Finance from 1995-2014.
Lucas has also again become Education Minister, for the first time since 1997, after John Gardner took time off after his wife Trudi had their baby daughter Emma this week.
In other movements, Nine reporter Kim Robertson, Off the Record colleague Katrina Stokes and former journalist Belinda Heggen are all joining the Lib team as press secs.
Reckon you have more cash than Gina Rinehart?
IT takes more than a degree of chutzpah to take on a multi-billionaire at a charity auction.
But that’s what one bidder did at the Royal Flying Doctor Service’s Wings for Life ball last weekend, pitting himself against mining and pastoral magnate Gina Rinehart.
The optimistic bidder, believed to be Whittles Group of Companies deputy executive chairman Allan Amber, had his sights on an exclusive travel package for two on The Ghan, which had a retail value of $4200. But the valiant bidder eventually bowed — literally — in defeat when the price reached $6750.
Among those in Rinehart’s posse were (pictured with her from left) Australian swimmer Travis Mahoney, his girlfriend, beach volleyballer Phoebe Bell,Olympic men’s 100m freestyle gold medallist Kyle Chalmers, his girlfriend and fellow Olympic swimmer Madison Wilson, along with Trade, Tourism and Investment Minister David Ridgway.
Both Whittles and S. Kidman & Co, of which Rinehart is the principal owner, were major sponsors of the Adelaide Entertainment Centre event, which raised $280,000.
Adelaide’s dynamic pairing
THE reappointment until 2020 of Adelaide University chancellor Kevin Scarce heralds the long-term formation of a dynamic duo with new vice-chancellor Peter Rathjen, with aims to overhaul both the university and the city.
Scarce, the state’s governor from 2007-2014 and a retired Rear Admiral, has long sought to influence and lead economic development, particularly in the defence sector.
Rathjen, an Adelaide alumnus and distinguished medical researcher, was similarly active in his previous role as the University of Tasmania’s vice-chancellor.
As his official profile says, Rathjen was instrumental in creating vibrant new university precincts within the CBDs of Hobart, Launceston and Burnie. He is pushing to replicate this at the Old RAH site but risks alienating powerful Liberal Christopher Pyne.
But the Scarce/Rathjen pairing will continue to be assertive as they seek to advance the uni and city development.
Dawkins a half-chance to pick up Mayo nomination
Labor is expected to pick its candidate for the Mayo by-election next week.
As revealed by Off the Record last month one of the prospective candidates for the Adelaide Hills seat is Alice Dawkins, daughter of former Labor federal treasurer John Dawkins and Maggie Dawkins, a former adviser to Labor leader Kim Beazley.
According to Labor sources the 24-year-old Dawkins is a “50-50” chance to win the nomination and be plunged into an intriguing by-election contest with another famous political scion Georgina Downer, daughter of former foreign minister Alexander Downer.
Dawkins told Off the Record she had been inspired to put her hand up because of Downer’s comments about her connection to the seat, even though she was a resident of Melbourne.
“I felt those comments fell flat considering she had tried to be preselected in (the Victorian seat of) Goldstein,” Dawkins said. “I think I know it a little more intimately than Georgina.”
Both will be up against Rebekha Sharkie, the sitting MP elected under the Nick Xenophon banner who was forced to step aside after being caught up in the dual citizenship storm and high-profile indigenous elder Major Sumner who is running as a Greens’ candidate.
The by-election will be held on July 28, leaving all parties plenty of time to make a case.
The Libs are wheeling out the big guns early with Prime Minister Malcolm Turnbull in town to campaign for the junior Downer who is seeking to win back the seat her father held for 24 years until he quit in 2008.
Read all about it
IT is said ignorance is bliss, but not for Campbelltown Mayor Simon Brewer.
The burgher teed off on Facebook this week in response to a relatively straightforward story about his council’s recreation centre being marketed exclusively with photos of fit, young people — something Brewer himself had raised concerns with.
But, for some reason best known to others, he deemed the story “garbage” and “fake news”. When an Advertiser reporter calmly asked what his problem was, Brewer said he hadn’t read the story — and does not even read the only daily newspaper in his city. Oops.
But he kept up his tirade and insisted he was “extremely well informed”.
Bed pals
There is no doubt Labor MPs have a bit more time on their hands after losing the March election and it’s pleasing to see them putting it to good use.
The entire shadow cabinet, including leader Peter Malinauskas, are taking part in this year’s Vinnies CEO sleep-out which is being held on June 21 at Adelaide Oval.
The high-profile annual event raises money to help the homeless. Some other big names participating this year include Banksia chief Nick Reade and Luke Walker from the Adelaide Casino.
The Labor team is aiming to raise around $42,000 from spending a chilly night outdoors. At the moment. It’s sitting around $2500.
To donate to Labor, or anyone else for this worthy cause, head to www.ceosleepout.org.
Battle to save animals on the brink at Outback reserve
Conservationists are battling to save animals at an Outback reserve from the effects of the worst drought in recent memory, and have received a funding boost to redouble their efforts.
Country tradie to face court over incomplete work
A country tradesman will face the Elizabeth Magistrates Court over allegations he was not licenced and refused to refund money to clients.