PM Scott Morrison’s $10bn deal for Warren Entsch to cancel retirement

Warren Entsch says Scott Morrison offered him two incentives for his electorate to cancel his retirement plans and contest last year’s federal election.

Embattled veteran Liberal MP Warren Entsch says former Prime Minister Scott Morrison offered him a $10bn deal to cancel his retirement plans and contest last year’s federal election. Picture: Bronwyn Farr.

Warren Entsch says Scott Morrison convinced him to cancel his retirement plans and run again at the 2022 election by offering two incentives: a $10bn cyclone re­insurance pool for northern Australia and a $20m electricity microgrid in his electorate.

The revelations come as former prime minister Mr Morrison confirmed he attended an exclusive private dinner with Mr Entsch, then-senior ministers Bridget McKenzie and David Littleproud, and a Soviet-born billionaire party donor mate of Mr Entsch, Alex Sekler, at a Canberra restaurant in February 2022.

Mr Morrison insisted he did not discuss nor was involved in organising Mr Sekler’s $304,000 donation that dropped into Liberal National Party coffers on the eve of last year’s federal election.

Queensland’s Crime and Corruption Commission has been asked to investigate allegations – revealed by The Australian – that Mr Entsch organised for a property developer donor to fly to the Torres Strait and jump the queue to receive his preferred Pfizer Covid vaccine.

Mr Entsch, the veteran LNP member for the far north Queensland seat of Leichhardt, had been campaigning fruitlessly for both policy initiatives for years – the microgrid to deliver power to the area north of the Daintree River for nearly 25 years, and the re­insurance pool to bring down premiums for 10 years.

It was only when Mr Morrison needed to persuade Mr Entsch to contest the May election in the marginal seat that the former crocodile catcher held the upper hand.

Coalition sources, and Mr Entsch himself, confirm that in February 2021 during a parliamentary sitting week, Mr Morrison and Mr Entsch had a meeting in the Prime Minister’s office in Canberra.

Former Prime Minister Scott Morrison visits Skytek Pty Ltd in Cairns, in Warren Entsch’s electorate of Leichhardt, in April 2022 on the federal campaign trail. Picture: Jason Edwards

“Entsch walked into Morrison’s office and said, ‘I’ve decided to do it (run again), on one con­dition. What’s in it for me?’ Morrison said ‘There’s not too many people in this building who can walk into a prime minister’s office and say something like that with any level of credibility but you’re one of them; what do you want?’ ”

In a lengthy interview with The Australian last week, Mr Entsch agreed he’d had a meeting with Mr Morrison and asked for two things – “A northern Australia reinsurance pool, and also a microgrid for north of the Daintree River that they’ve been trying to get for 25 years,” he said.

Mr Morrison agreed, and Mr Entsch promptly issued a press release on March 3, 2021, saying he had decided to stay on after being approached by “several tourism businesses and community leaders across the region urging me to reconsider my retirement plans”.

“Their argument was they needed my experience, connections and credibility as a senior government member, as well as the experience of my wonderful staff, to maximise opportunities for the region as we begin the recovery phase,” he said at the time.

“They are firmly of the view this is not the time for change.”

A spokeswoman for Mr Morrison told The Australian that Mr Entsch had been “a consistent and public advocate for these important projects for north Queensland and the government was pleased to support them on their merits”.

“Mr Entsch has a long history of being a passionate advocate for far north Queensland and was a valued member for the government’s parliamentary team,” she said.

On the dinner with Mr Sekler in February 2022, Mr Morrison’s spokeswoman said attending such events was “one of the many responsibilities” of being the leader of a political party “however Mr Morrison did not involve himself or discuss with guests any of the arrangements regarding support for the LNP you refer to”.

Then-Prime Minister Scott Morrison greets Liberal member for Leichhardt Warren Entsch during a visit to Cairns during the federal election campaign in May 2019. (AAP Image/Mick Tsikas)

One of Mr Sekler’s companies donated $304,000 to the Queensland LNP in April 2022 – $4000 covered the bill for the Canberra dinner, and the remaining sum was spent on Mr Entsch’s ultimately successful campaign to retain Leichhardt.

Mr Sekler has not responded to questions.

Mr Entsch had announced his intention to retire on election night in 2019, when he said the coming term would be his last.

Mr Morrison delivered on both his promises to Mr Entsch.

The Daintree microgrid project received $19.3m in the Morrison government’s May 2021 budget, with the project designed to replace the high-cost diesel power generation on which the community relied for electricity.

In a post-budget press release, Mr Entsch said he was proud to have delivered the project, a “game-changer for the Daintree community and which delivers on my firm commitment to deliver a solution to their power needs”.

He later told parliament he had “fought tirelessly for this project for more than two decades,” after an $18.75m contract was awarded to Volt ­Advisory Group to develop the microgrid.

On the final parliamentary sitting day before calling the election, the Morrison government passed legislation to establish the $10bn reinsurance pool for ­cy­clone and related flood damage.

Mr Entsch trumpeted the result, telling his constituents that homeowners could expect to see premium discounts of up to 46 per cent, strata properties of up to 58 per cent, and small businesses up to 34 per cent.

“This has been a very long journey for me personally and I have copped a lot of criticism over the years but at the end of the day, I have delivered for far north Queenslanders,” he said.

Attached to the legislation was $18.4m over five years to the Australian Competition & Consumer Commission to monitor premiums to ensure the pool delivered for northern Australians.

But this week Mr Entsch conceded to parliament that only Sure Insurance and Allianz had joined the reinsurance pool; major companies Suncorp and IAG were yet to sign up.

An industry source said while some premiums had seen reductions of 7-17 per cent, savings were expected to be obliterated by the international reinsurance market and soaring costs to cover risk from other kinds of disasters.