Opposition Leader Michael Daley failed to disclose 32 conflicts over council DAs
State Labor leader Michael Daley did not declare non-pecuniary conflicts of interest over ALP donations totalling $1.2 million while assessing developments valued at $71 million in Sydney’s east when he was a Randwick councillor, it has been revealed.
- Michael Daley approved six projects after developer donations
- Daley did not disclose developer donations to political campaigns
State Labor leader Michael Daley did not declare non-pecuniary conflicts of interest over ALP donations totalling $1.2 million while assessing $71 million worth of developments in Sydney’s east as a councillor.
At least 32 property developments, the majority worth well in excess of $1 million, were assessed by Mr Daley on Randwick Council, where he failed to disclose political donations or personal relationships.
The scale of the approvals was revealed as it emerged Mr Daley would have been obliged to disclose his close personal relationship with the boss of the Randwick Labor Club when greenlighting the club’s $5 million DA.
While not commenting on any individual matter, the Office of Local Government last night confirmed councillors would have been obliged to disclose close personal relationships.
The cases uncovered by The Daily Telegraph involve property developers donating to Mr Daley’s campaign fund for a state Maroubra by-election in 2005 as well as donations to the ALP Randwick Council ticket in 2000 and 2004.
Some developers also gave generously to the ALP NSW branch.
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Mr Daley yesterday defended his decisions, saying he was “one of 15 councillors on council”.
“The vast majority of the DAs in question were recommended by council officers and approved by Labor and Liberal councillors, many without a dissenting voice,” he said.
“The Liberal Party also received donations from developers during this period, and prior to donations from property developers being banned by Labor in 2009.”
Mr Daley has not addressed specific concerns raised about not declaring pecuniary or non-pecuniary interests in accordance with strict council Codes of Conduct, backed by NSW laws after January 2005.
“All these reports make it seem like I am all-powerful, with a stroke of a pen I would have approved all these developments,” he said.
The Office of Local Government confirmed that under the “Model Code of Conduct” in force “close personal friendship could potentially constitute a personal interest”, triggering the code.
Mr Daley took part in a 2006 vote to approve a major revamp of Randwick Labor Club, despite the fact club boss Ken Murray was his campaign manager.
Mr Daley had declared, along with other ALP councillors he was a member of the club, but didn’t put on the record his close relationship with Mr Murray. Nor did he declare, or absent himself from the approval process, despite the fact the club had donated $10,400 in 2004 to the ALP Randwick council team and $33,000 to the 2000 ALP team.
“Where a person had a non-pecuniary conflict of interest arising from a personal interest such as a close personal friendship, they would have been obliged to disclose the relevant interest under clause 6.6,” a spokesman for OLG said.
In response, Mr Daley said: “Ken Murray has been a prominent member of the community and the ALP and campaign director for local campaigns for more than 30 years”. “He is known to councillors including Bruce Notley-Smith (who was a Liberal councillor).”
THE LIST OF DEVELOPMENTS
PETROVIC
Developer: Michael Petrovic, Sam Property Developments
Project: $900,000, Bunnerong Rd, Maroubra
Donation: $10,000 to the Randwick ALP team in March and June 2004. In September 2005 Sam Property Developments donates $2000 to the Michael Daley by-election campaign.
DA: November 2003, Daley votes in favour of consent, with conditions imposed. Two Green councillors opposed
Second DA: August 2004, Daley present at the meeting where application granted and did not oppose the motion.
Daley says: “You are asking me about a particular development application that I don’t recall 20 years ago when I was one councillor out of 15.”
ARGOS
Developer: Argos Investments.
Project: $1.5m refurbishment of Coach and Horses Hotel.
Donation: June 2000, Argos Investments donates $1000 to ALP Randwick council team. 2004, donates $10,250 to ALP Randwick council team. Between 2000 and 2006, donates $89,750 to ALP NSW branch.
DA: February 2006, council grants DA on conditions, Daley votes against a motion to reduce smoking area and raise enclosing walls and limit hours of operation till 10pm.
Daley says: “Argos … donated $421,942 to the Liberals and Nationals between 8 May 2004 and 30 June 2011 … Rules and laws were different then — they have, with my full support, been significantly tightened, including by a Labor government which banned property donations in 2009.”
RANDWICK LABOR CLUB
Developer: Randwick Labor Club.
Project: $5 million refurb.
Donation: Club donates $455,500 to ALP NSW branch between 1999 and 2005. In 2000 club donates $33,000 to Randwick Council ALP team. In 2004 club donates $10,400 to Randwick Council ALP team. Club president Ken Murray is Daley’s campaign manager. In October 2005 HSU uses club address to donate $16,667 to NSW ALP for Daley’s Maroubra by-election.
DA: In August 2006 council Daley declares non-pecuniary interest as a member of the club, along with other ALP councillors, but does not declare relationship with Mr Murray or donations. A motion to knock back consent by some Labor and Liberal councillors is lost, Daley votes in favour of consent.
Daley: “ … there was no requirement to put relationship on the record, Ken Murray is someone I’ve known for 35 years.”
CHRISTOFIDELLIS
Developer: Steven Christofidellis, Exceland, Glenayr, East, Smilie, Frances St.
Project: $4.1m McKeon St, Maroubra; $1.9m Frances St; $1.1m, Coogee Bay Rd; and $5m Alison St, Randwick.
Donation: September 2002, $2200 to ALP NSW branch. February 2004, $4255 to ALP Randwick Council team. In year to June 2004, $45,760 to NSW ALP. September 2005, $2000 to ALP Maroubra by-election.
DA: McKeon St, October 2002, council considers DA. Daley moves motion to consent with conditions. Green councillors want to refuse because of side setbacks not met, which Daley, ALP and Liberals vote against.
DA: Coogee Bay Rd, August 2003, Daley seconds successful motion to grant consent. Also votes in favour of development when division called.
DA: Frances St, September 2002, consent granted following division where Daley voted for development. December 2003, modification sought, Daley votes against motion to refuse the DA due to excessive bulk and setbacks.
DA: Alison Rd, October 2004, council approves, Daley in attendance, did not abstain.
Daley: “Donations to NSW Labor Party office or local campaigns were received at arm’s length from me.”
“Rules and laws were different then — they have, with my full support, been significantly tightened, including by Labor government which banned property donations in 2009.”
ALEXANDER
Developer: Mark Alexander, MA Properties, Rustically Pty.
Project: $3.5m Boyce Rd, Maroubra.
Donation: February 2004, $4200 to ALP Randwick Council team.
DA: development granted without deferred conditions on exceeding height. A division called and votes in favour of granting DA.
Daley: “Day after day, the Liberal dirt unit is dribbling out nebulous claims that go back 20 years. Rules and laws were different then — they have, with my full support, been significantly tightened, including by Labor government which banned property donations in 2009.”
BOYD BROS/OBEID BUSINESS PARTNERS
Developer: Boyd Bros, Telmet Ventures, Digital Outdoor, Firetest.
Project: $4.1m Mons Ave, Maroubra.
Donation: $366,140 between 1999 and 2006. In May 2000, $5000 to ALP Randwick Council team.
DA: Rezoning of open space land in 1999, increases land value by $1 million. Daley present at meeting, no record that he voted against it. In November 2000, council considers DA, Daley chairs meeting and signs minutes that grants approval, waiving need for master plan. Liberal Bruce Notley Smith declares his party had received donations.
Daley: “I was unaware” the Boyd Bros business partners and friends of the Obeids. I did not know Mr Obeid until 2005 after I was elected to parliament. I voted against the proposal in caucus.”
TZANEROS
Developer: Terry Tzaneros, Smith Bros
Project: $3.1m Transport Terminal
Donation: Between 1999-2004, $47,000 to ALP NSW. June 2000, $10,000 to ALP Randwick Council team. In February and March 2004, $26,000 to ALP Randwick Council team. In September 2005, $2000 to ALP Maroubra by-election.
DA: December 2002, council approves terminal. Daley attends meeting, votes against deferring application. August 2008, Daley discloses non-pecuniary interest in another Tzaneros DA as a donor to the ALP’s 2004 campaign and had served on port meetings with Tzaneros.
Daley: “I was not aware of any donation made by Mr Tzaneros at the time.”
MECK
Developer: Boris and Philip Meck, Meck Investments, Springwood, Leystreet.
Project: $2.5m Dudley St, Coogee; $3m Arden St, Coogee; $3.5m Anzac Pde, La Perouse.
Donation: March 2004, $3000 to ALP Randwick Council team. September 2005, $3000 Maroubra by-election.
DA: December 2003, Randwick Council knocks back a $2.8 million DA for Anzac Pde, with Mr Daley moving motion to refuse. Objections on bulk, traffic, loss of ocean views. February 2005, after losing a Land and Environment Court appeal, developers take second DA to council that is approved, Mr Daley present.
DA: July 2005, councillors vote to reject Dudley St project. Mr Daley calls a division and votes against the knock-back, but loses. Project later approved with Mr Daley not present. March 2006, Mr Daley votes to allow an amended DA for Dudley St to give it extra parking spots and floor ratios, with no declaration of pecuniary or non-pecuniary interests.
DA: December 2003, Mr Daley seconds a successful motion to grant consent for Arden St subject to conditions, with other councillors moving an unsuccessful motion to defer the DA for mediation. July 2004, Mr Daley moves a resolution to rescind a planning committee decision to knock back an amended DA for property (made when he was absent). He then seconds another successful motion to grant the amended DA.
Other DAs before Randwick Council when Michael Daley was a councillor
Project: McCauley St Matraville
DA: $2.7m
Total donation to ALP, Labor council ticket or Maroubra by election campaign: $370,141
Project: Anzac Pde, Maroubra
DA: $8m
Total donation to ALP, Labor council ticket or Maroubra by election campaign: $7000
Project: Carlton St, Kensington
DA: $5.95m
Total donation to ALP, Labor council ticket or Maroubra by election campaign: $3000
Project: Meagher Ave, Maroubra
DA: $80,000
Total donation to ALP, Labor council ticket or Maroubra by election campaign: $50,000
Project: Lorne Ave, Kensington
DA: $15.7m
Total donation to ALP, Labor council ticket or Maroubra by election campaign: $1525
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