Danny Pearson backs transfer of agency from his portfolio amid conflict of interest row

Consumer Affairs Minister Danny Pearson has backed a move to transfer an agency board chaired by his wife from his portfolio.

Consumer Affairs Minister Danny Pearson said it was the right move for an agency board chaired by his wife to be transferred from his portfolio area because it would be “unfair” if she lost her job.

It comes after Mr Pearson responded to allegations relating to shareholdings worth hundred of thousands of dollars this week by opening a blind trust and apologising for his “error of judgment” in not recognising the “potential for a perception of conflict of interest”.

Mr Pearson’s wife is paid up to $53,000 each year as chair of the Victorian Business Licensing Authority’s board, which has fallen under the Consumer Affairs portfolio since 1998.

But in December last year the Andrews government transferred the Business Licensing Authority into the responsibility of Small Business Minister Natalie Suleyman after Mr Pearson was handed the Consumer Affairs portfolio after a post-election cabinet shake-up.

While the Business Licensing Authority remains within the Department of Consumer Affairs, it is now required to report to Ms Suleyman rather than Mr Pearson.

Mr Pearson said that was an “entirely fair and appropriate” response.

“I think all of us would agree that it would be entirely inappropriate for my wife to be reporting through to me,” he said.

“When you are faced with that sort of circumstance, what am I supposed to do?

“Is she supposed to lose her job for me? Does she report through to me? One is unfair, and the other would be improper, so appropriate conflict resolution mechanisms were put in place.”

Asked if the government should have publicly made its decision to transfer the agency, Mr Pearson said he had always disclosed his interests on the public record, and indicated that his wife had held the position.

Mr Pearson’s wife resigned from her position as deputy chair of the Motor Car Traders Claims Committee because that role continues to fall within the Consumer Affairs portfolio.

Premier Daniel Andrews, who allocates ministers into portfolios, backed his decision to appoint Mr Pearson in that role.

“In my judgment he is the best person to fulfill those ministerial duties,” he said.

“Beyond that, from day one, any issues in relation to his wife’s professional role — and she’s an outstanding public servant — have been managed.

“It was never an issue.”

Premier dismisses call for shareholder rule

Daniel Andrews has rejected calls to align his government with the Commonwealth, which forces ministers to divest their personal shareholdings.

The Premier said it wasn’t necessary to follow Prime Minister Anthony Albanese in establishing a code of conduct that stipulated federal ministers must divest any shares to avoid any potential conflict of interests.

“I think putting them into a blind trust does in fact put those matters beyond doubt, so I think we are in furious agreement,” Mr Andrews said.

“If people have an allegation to make, they ought to make it.

“But if this is about perception, then the minister has dealt with that and I think that’s the appropriate thing to do.”

Assistant Treasurer apologises

Mr Pearson on Tuesday apologised for failing to recognise the “potential for a perception of conflict of interest” over his holding of Commonwealth Bank Shares when he announced in August 2021 a major contract with the bank.

The Assistant Treasurer committed to placing his shares in a blind trust, and on Wednesday said he had spoken with his accountants to begin this process.

“Once those assets are transferred into a blind trust, I don’t know what’s going on,” he said.

“I have no visibility about what the trustees who run that fund are doing with those assets.”

The Herald Sun revealed that Mr Pearson held shares in CSL, Computershare, Telstra, Bega Cheese and Beach Energy which all benefited from government decisions.

“I was not the responsible minister for any of those decisions,” Mr Pearson said.

Shadow Treasurer Brad Rowswell said the revelations would not pass the pub test.

“I would hate to be Danny Pearson today, frankly,” he said.

“He’s not only just on one gravy train, he’s running a fleet of them.” .

According to the register, Mr Pearson held up to $50,000 in CSL shares in November 2021 when the Andrews government announced a $95m incubator to be delivered through the Breakthrough Victoria Fund, to be funded in part by CSL.

Questions were raised over share holdings including Telstra, CSL, and Beach Energy listed on Mr Pearson’s register of interests. Picture: Aaron Francis

In the same month, Mr Pearson held up to $10,000 in Computershare shares when the company participated in the government’s $64m Digital Jobs program, which offered $5,000 subsidies for interns.

Last year, Mr Pearson held up to $10,000 in Telstra shares when the government announced $250m to deliver 1,108 mobile infrastructure projects in partnership with Axicom, ENE. HUB, Optus, Telstra and TPG Telecom.

He also held up to $10,000 in Beach Energy shares when the company was given government approval to turn a testing well beneath the Port Campbell National Park into a production well, and up to $10,000 in Bega Cheese shares when the company was included in a $31m Business Recovery Energy Efficiency Fund to help 110 businesses reduce energy costs.

Asked a series of questions about the share holdings, a government spokesman said only: “the minister has at all times disclosed relevant interests to the parliament.”

The spokesman said Mr Pearson was not the responsible minister for any of the listed decisions.

Shadow minister for finance Jess Wilson said Mr Pearson had further questions to answer.

“The Assistant Treasurer’s portfolio problem has gone from bad to worse and he is quickly losing the trust of the Victorian community,” she said.

‘I accept it was an error of judgment’

Mr Andrews won’t force ministers to place their shares into a blind trust despite a senior frontbencher being forced to apologise for a potentially “blatant conflict of interest”.

Assistant Treasurer Danny Pearson on Tuesday admitted he made an error of judgment by not managing a perceived conflict of interest following revelations he holds shares in the Commonwealth Bank.

Questions about a potential conflict have been raised after Mr Pearson, in August 2021, announced the government would end its contract with Westpac.

Instead, the government opted for its banking services to be handled by a three-bank panel — including the Commonwealth Bank.

Mr Pearson, who has held the CBA shares for more than a decade, acknowledged that this “longstanding shareholding” may have raised a perceived conflict of interest with his ministerial duties.

Premier Daniel Andrews won’t force ministers to place their shares into a blind trust. Picture: David Geraghty

But Mr Pearson said he wasn’t a decision-maker in the awarding of that contract, and that the process was run by senior public servants.

“Despite this, I accept that it was an error of judgment to not recognise and manage the potential for a perception of conflict of interest and I unreservedly apologise for this oversight,” he said.

“For avoidance of doubt, I have spoken to the Premier and advised him that I will place all of my shareholdings in a blind trust.”

But Mr Andrews said he wouldn’t order ministers to place their shares in companies in a blind trust.

“I don’t know that I’ll need to do that,” he said.

“I don’t own any shares myself. But I’m sure this will be a reminder to people that it’s not just about acting appropriately, it’s also (about) making sure that can never be called into question.

“This is about perceptions, and to that end, the minister will put these matters beyond doubt.

“The minister has apologised for that and there’s clearly nothing more to be said.”

Prime Minister Anthony Albanese told federal ministers to sell off shareholdings and divest from blind trust arrangements.

Daniel Andrews says Mr Pearson wasn’t directly involved in assessing bids. Picture: Andrew Henshaw

New South Wales Finance Minister Damien Tudehope last week resigned from cabinet after admitting he held shares in Transurban.

Asked how Mr Pearson’s case differed, Mr Andrews said he wasn’t familiar with Mr Tudehope’s situation but said Mr Pearson wasn’t directly involved in assessing bids.

“This was a process that was run by independent senior public servants,” he said.

Throughout the election campaign and as recently as this month, Mr Pearson has played the role of government attack dog to criticise the Liberal Party.

Shadow Treasurer Brad Rowswell said Mr Pearson had acted hypocritically.

“The issue here is this bloke has set the standard very, very high,” he said.

“Any number of times he has stood in this very spot, holier than thou, pontificating about what is right and what is wrong in his opinion.

“And today, the bloke has been effectively caught with his hand in the cookie jar.”

Opposition finance spokeswoman Jess Wilson said it was a “blatant conflict of interest”.

“No government minister should be involved in, let alone making decisions from which they stand to benefit financially from,” she said.