FED: Howard defends softer conduct rules

AAP General News (Australia)
02-10-1999
FED: Howard defends softer conduct rules

By James Grubel, Chief Political Correspondent

CANBERRA, Feb 10 AAP - Prime Minister John Howard accused the ALP of playing the politics
of envy as he defended the decision to allow ministers to retain shares in companies linked to
their portfolios today.

Mr Howard said the code of ministerial conduct was changed in line with recommendations
from senior public servants and not because of any political motive.

But the opposition launched a scathing attack on the new rules and said ministers could now
have a conflict of interest because they could make decisions which benefitted their
investments and family wealth.

Under the original code of conduct, ministers were required to divest all shares in
companies linked to their portfolios. But under the new rules, ministers can hand over control
of their investments to their adult children or to blind trusts.

Mr Howard said the changes made the code of conduct more contemporary and reflected the
high level of share ownership in Australia.

"The changes that were made to the code were, with one or two very minor exceptions, the
direct recommendation in the incoming brief, the brief to an incoming government, of the
Department of Prime Minister and Cabinet," Mr Howard told parliament.

"They make the guidelines more contemporary. They are totally defensible.

"I completely reject the envy credo of the Labor Party.

"I do not intend to be prime minister of a country which allows a situation to develop
where men and women who've been successful in business, men and women who have accumulated
assets, are intimidated out of offering themselves for public service."

But Opposition Leader Kim Beazley said Mr Howard had sunk parliamentary standards to a new
low.

"We've had yet another depth plumbed yesterday and today with his presentation of and
explanation of the guidelines," Mr Beazley said.

"The guidelines in the past have been replete with reference to appearances as well as
actualities. Because that is what has been required of ministers through the history of the
Commonwealth, but is required of them no longer."

Mr Beazley said the shares could also be handed back to the minister once they leave a
portfolio.

"This is the lowest point standards of ministerial conduct have reached in this country,"
he said.

The changes follow problems with the original code of conduct which led to the forced
resignation of three frontbenchers - Jim Short, Brian Gibson and Geoff Prosser - over
conflicts of interest and the resignation of four others over incorrect travel claims.

AAP jg/mfh/gl

KEYWORD: CONDUCT NIGHTLEAD

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