Nine’s executive hits back at Packer’s claims he paid Peter Costello to be his secret lobbyist

The company’s publishing boss says “mental health sensitivities” made him reluctant to respond to the billionaire’s claim that Peter Costello acted as his “secret lobbyist”.

Nine Entertainment chair Peter Costello. Picture: Britta Campion.

Nine Entertainment publishing boss James Chessell has told staff “mental health sensitivities” made him reluctant to respond to James Packer’s claim that the company’s chairman, Peter Costello, acted as a “secret lobbyist” for him in 2011.

On Monday, The Australian reported the billionaire businessman had, in private correspondence to the former federal treasurer, alleged Mr Costello had been engaged by him or his Consolidated Press Holdings vehicle as he attempted to get “closer” to the then Victorian gaming minister Michael O'Brien.

Through a Nine spokesman, Mr Costello confirmed to The Australian that he had been “an adviser to CPH in 2011, for a year” – but denied he had engaged in lobbying.

Mr Costello joined the Nine board in 2013, although he had been on the Future Fund board since December 2009.

In an email on Monday, Chessell told staff he wasn’t willing to speak publicly on the claims made by Mr Packer. “I’ve received a blizzard of correspondence from Packer since he took exception to something we published in late June,” Chessell wrote. “After trying to engage with him at first – which clearly didn’t work – I’ve ignored almost all of it.

“I never heard a word from Peter Costello about Crown Unmasked before, during or after publication/broadcast.”

In June, Mr Packer told The Weekend Australian that he wanted to “rehabilitate his reputation” and return to public life after several years abroad, adding he was the happiest he had been “in years” and was excited about starting “a meaningful and successful Act 3”.

Crown had been the target of three state-based, royal commission-style inquiries over the past two years after revelations about money laundering in its casinos rocked the company.

Many of those issues were first raised by McKenzie in the Crown Unmasked series in 2019.

Chessell, in his email to staff, said he had “received another dozen emails from Packer last night”. “In the past he has copied in executives from competitors such as Seven and News,” he wrote. “I hope he genuinely does make peace with Crown Unmasked and I wish him all the best.”

In his July emails, Packer wrote: “For the record Crown unmasked was a great story and Nine should be very proud of Crown Unmasked. Well done to all involved. I mean that.”“Great journalism in the best sense, and Nick McKenzie should definitely win the Gold Walkley Award for best journalist, best story of the year,” he added.