How business heavyweights have cultivated close alliances with Daniel Andrews
A small circle of Melbourne businessmen “have the ear” of the Premier after years spent forging alliances over fine wine, scotch and golf.
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Premier Daniel Andrews has relied on a tight-knit group of business moguls, bureaucrats and union bosses for access and advice during his eight years in charge of Victoria.
The man from Labor’s Socialist Left faction, who has wielded unrivalled power and influence over his party and the Victorian public, laid the base for his relationships with key allies as a fresh-faced MP in his mid-30s.
Insiders say business heavyweights began cultivating Mr Andrews during his days as a minister in the Bracks and Brumby governments after identifying him as a future leader, but that the Premier also identified those who would be useful to him.
One MP said one of Mr Andrews’ greatest strengths, other than his communication skills, has been to find a way to keep “important” people and stakeholders happy.
Several government MPs name property baron Max Beck, a rich-lister who founded the Becton Property Group in 1976, as being a confidante of Andrews, one of a small circle of Melbourne businessmen who “have the ear” of arguably the most powerful politician Victoria has ever known.
Mr Beck told the Herald Sun his relationship with the Premier “probably goes right back to when he was the health minister … and I was the deputy chairman (of The Royal Children’s Hospital) when we built the new hospital”.
“That’s when I first met him,” Mr Beck said.
“He was from Wangaratta, I was from Holbrook, sort of country boys, and we got on quite well, it’s as simple as that, really.
“And because I’m in fairly big business, from time to time we bump into one another.”
Mr Beck’s impressive property portfolio includes a massive development adjacent to Caulfield racecourse and ownership of Essendon Airport in partnership with Lindsay Fox, founder of the Linfox trucking empire.
The pair began developing the 305ha property in 2001 courtesy of a 50-year lease from the federal government at a cost of just $22m.
On the weekend of the Premier’s infamous tumble at Sorrento last year, Mr Andrews and his family were staying at a holiday rental just a short drive from where Mr Beck and Mr Fox own clifftop mansions.
It was also a time when the Foxes were in the hunt for another lucrative government contract – a new quarantine facility at its other leased site of Avalon Airport.
The Premier’s close relationship with the Fox family, most notably one of Lindsay’s three sons Andrew Fox, had drawn unwanted heat just two months before the fall when it was revealed that Mr Andrews and his wife Catherine dined at the Fox family compound in Portsea.
Mr Andrews’ office confirmed that he had been at Mr Fox’s home, but insisted the Avalon Airport quarantine proposal was not discussed.
Guests that night included businessman Luke Sayers, a former chief executive of PwC Australia and current Carlton Football Club president.
Mr Sayers, another “close friend” of the Premier, runs a high-end consultancy firm part-owned by the Fox family, for whom he has provided advice on estate and succession planning.
He was secretly engaged to do an initial scoping study for the controversial Suburban Rail Loop at the behest of Mr Andrews’ other “go-to” businessman, James Mackenzie.
Observers say the Premier’s links with the Fox family can be traced to former ACTU secretary Bill Kelty, a long-time Linfox board member and executor of Lindsay’s estate. Former federal Labor leader Simon Crean is another loyal Linfox director.
“That relationship goes back a long way,” one insider said.
“They honed in on Dan’s love of fine wine, scotch and golf. They see a politician and they go to work on him.”
In October 2020, when Mr Andrews was coming under fire from some of Australia’s biggest business leaders over his brutal lockdown laws, Lindsay Fox came out swinging in support of the Premier.
The love came back the other way in April this year, when Mr Fox and his wife Paula announced they had donated a record $100m to the National Gallery of Victoria under an arrangement that will see the Fox family name live on in perpetuity at a new contemporary gallery.
The state opposition last year called on the Premier to recuse himself from any cabinet deliberations over the Avalon Airport proposal “or other decisions affecting the commercial interests of Linfox … given the extent of his personal relationship with the Fox family”.
Linfox is currently seeking state government approval – and funding – for a railway station on the Geelong line to service its Avalon Airport operations.
During Question Time in parliament, Liberal MP Louise Staley asked Mr Andrews how many helicopter flights or other gifts he had received from the Fox family.
“I behave appropriately at all times, that is the oath that I swore and if the conspiracy theorist opposite wants to make a claim or allegation, go ahead and do it,” Mr Andrews barked.
Former Collingwood president Eddie McGuire is another business figure considered a close associate of the Premier.
Luke Darcy, McGuire’s former breakfast radio colleague, once said his relationship with the former Magpies boss had turned “frosty” after he took Mr Andrews to task over lockdown laws during a fiery 2020 interview.
Mr Andrews has also maintained close links with the powerful pubs and clubs sector for more than two decades, and gave a eulogy for late Australian Hotels Association president Peter Burnett.
Labor MPs and ministers say while the Premier has his go-to rich-listers, Treasurer Tim Pallas and former senior ministers such as Martin Pakula and Luke Donnellan did the early groundwork with business leaders.
Mr Andrews formed some of his strongest ties while health minister, which was when his relationship with his closest union ally – Australia Nursing and Midwifery Federation state secretary Lisa Fitzpatrick – developed.
“Lisa and Dan are very close,” one minister said. “It’s probably his strongest union relationship.”
Other left-wing union leaders, including Community and Public Sector Union boss Karen Batt, are close, but the long-lasting relationship with his staffer-turned-Trades Hall chief Luke Hilakari is perhaps the most integral.
Other unions that are affiliated with Labor but more temperamental – such as construction unions – are dealt with via intermediaries.
Earl Setches, the boss of the plumbers union in Victoria, is a key contact for the Premier and his office when it comes to building industry workers. This includes the CFMEU and Electrical Trades Union.
While some of his links to the union movement have frayed, the Premier has stitched together enough deals to keep them quiet.
Or, as a CFMEU election ad says: “Dan might be a p---k, but he’s our p---k”.
WHO HAS THE PREMIER’S EAR
• Jeremi Moule
Secretary of the Department of Premier and Cabinet and Victoria’s top bureaucrat, who some say was “promoted above his level”. Took over from Chris Eccles, who was blamed by critics for allowing Andrews’ increasingly powerful inner circle to run roughshod over the public service. Moule earned the Premier’s trust when he oversaw communications strategy within the DPC but insiders say his lack of experience and independence is “a recipe for problems” because he “provides the advice to the Government”.
• Lindsay Fox
Billionaire Linfox trucking magnate with enormous influence in the corridors of power. The Premier’s go-to richlister, who backed his pandemic lockdowns when other business leaders were on the warpath. Known to host politicians – including Andrews and his wife Catherine – at his Portsea and Toorak mansions where top-shelf scotch and wines flow freely. Recently made a record $100 million donation towards The National Gallery of Victoria where the family name will live on in perpetuity at a new contemporary gallery. Long-time Fox advisers include former federal Labor leader Simon Crean and former ACTU Secretary Bill Kelty.
• Andrew Fox
Lindsay’s son and the Premier’s golfing mate. Managing director of the Linfox Property Group, which owns the Phillip Island Grand Prix circuit and 50 per cent of Essendon Fields. Older brother Peter runs the Linfox trucking and logistics business. A third son, David, oversees Avalon Airport, which unsuccessfully tendered for a COVID-19 quarantine facility.
• Max Beck
Prominent Melbourne property baron and golfing mate who “has the ear of the Premier”. The relationship dates back to Andrews’ days as Health Minister in the Brumby government. Beck was a key conduit between the Premier and wealthy Melbourne families who held lavish fundraisers during Andrews’s early years in charge. Beck Property Group owns Essendon Fields in partnership with the Fox family.
• James MacKenzie
Andrews ally, boardroom specialist and architect of the controversial Suburban Rail Loop project, which he now chairs. A “blue chip ALP man” who also chairs the Melbourne Arts Precinct Corporation (MAP Co), Victorian Funds Management Corporation, Slater and Gordon Lawyers and is a trustee of the Melbourne Cricket Ground Trust. Audited Labor’s promises in 2014 when he declared business had nothing to fear from an Andrews Government. “He’s the Premier’s most trusted businessman to get the job done,” said one observer.
• Luke Sayers
Former PwC boss and current Carlton president who has since set up a consultancy firm part-owned by the Fox family, for whom he has provided advice for estate and succession planning. Was engaged to do an initial scoping study for the $34.5bn Suburban Rail Loop in secret, without the knowledge of the head of the transport department. The running joke among outgoing Labor ministers is that they will soon be off to work for him.
• Luke Hilakari
Secretary of the Trades Hall Council, a critical campaign body for unions and conduit for Labor policy. Worked for Dan Andrews when he was health minister, and has a direct line to the Premier. Influential in the push for casual workers to get sick pay and for financial assistance to workers during the pandemic. “He’s the fixer who is crucial in holding the trade unions in line behind the Government,” said an insider.
• Lisa Fitzpatrick
A key ally of the premier and the head of the Victorian nurse’s union, who solidified her relationship with Andrews when he was health minister. In 2018 and 2022 the ALP campaign was based in the same building as the union, in North Melbourne. The union is not officially aligned with Labor but insiders say “Lisa has good access to Dan and (his chief of staff) Lissie Ratcliffe”.
• Eddie McGuire
Despite Dan’s antipathy towards his brother Frank, whom the Premier was happy to see dumped as Labor Broadmeadows candidate during 2022 preselections, Eddie Everywhere remains an important media and business ally. McGuire has hosted Dan for dinner to discuss his stadium ideas, while his former breakfast radio colleague, Luke Darcy, says his own relationship with the former Magpies boss turned “frosty” after he took Andrews to task over lockdown laws during a 2020 interview. “They’re close, Eddie is close to everyone in leadership,’’ Darcy said.
• Steve Bracks
The former premier has enormous political capital and helped Andrews during his election campaigns in 2014 and 2018. More recently conducted a review of Labor memberships with Jenny Macklin, following branch stacking allegations levelled at Andrews Government ministers. Chancellor of Victoria University and on multiple government-appointed boards including the MCG Trust.
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