Tuesday, October 11, 2005

bob.carr@au.macquarie.com

Well. Isn't it grand. Bob Carr retires from politics to enjoy the summer days on the beach. Now he wants to start working as a consultant with Macquarie Bank. No doubt his pay will be circa $500,000 (more likely higher).

What do former politicians do at Macquarie? Well lobby of course. Lobby who? Well, their former employers. What do Macquarie do? Well, a large part of their business is to buy/build public infrastructure and take it private. That is, build the M5 East and then put a toll on it, buy airports, buy communications assets, bundle them into a trust and then list that trust, make enormous 'management fees' from these trusts.

Now, it is clear that Macquarie's income stram is only as good as the pipeline of deals it has. This partly involves knowing the right people and knowing the right price. As most of their assets involve buying public assets (or at least building them), they need good contacts in government.

It seems like a conflict of interest therefore, if the former premier of our state, decides after only a couple of weeks to come out of retirement and then work for the enemy so to speak.

Another interesting aspect to this is the following. Allan Moss, head of Macquarie Bank, is married to the current ICAC Commissioner (a public servant). Recall that ICAC had to investigate several allegations of corruption in state Labour in only the last year. In particular the Orange Grove affair investigated whether government officials (including the newest staff member of Macquarie) were involved did a favour for their mate, Frank Lowy. These investigations have more or less cleared the government of wrongdoing.

You connect the dots.

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Manny Is Here: bob.carr@au.macquarie.com

Tuesday, October 11, 2005

bob.carr@au.macquarie.com

Well. Isn't it grand. Bob Carr retires from politics to enjoy the summer days on the beach. Now he wants to start working as a consultant with Macquarie Bank. No doubt his pay will be circa $500,000 (more likely higher).

What do former politicians do at Macquarie? Well lobby of course. Lobby who? Well, their former employers. What do Macquarie do? Well, a large part of their business is to buy/build public infrastructure and take it private. That is, build the M5 East and then put a toll on it, buy airports, buy communications assets, bundle them into a trust and then list that trust, make enormous 'management fees' from these trusts.

Now, it is clear that Macquarie's income stram is only as good as the pipeline of deals it has. This partly involves knowing the right people and knowing the right price. As most of their assets involve buying public assets (or at least building them), they need good contacts in government.

It seems like a conflict of interest therefore, if the former premier of our state, decides after only a couple of weeks to come out of retirement and then work for the enemy so to speak.

Another interesting aspect to this is the following. Allan Moss, head of Macquarie Bank, is married to the current ICAC Commissioner (a public servant). Recall that ICAC had to investigate several allegations of corruption in state Labour in only the last year. In particular the Orange Grove affair investigated whether government officials (including the newest staff member of Macquarie) were involved did a favour for their mate, Frank Lowy. These investigations have more or less cleared the government of wrongdoing.

You connect the dots.

1 Comments:

At Wednesday, October 12, 2005 12:45:00 pm, Blogger Pete said...

Hmmm... That is interesting.

It turns out today that the Lane Cove Tunnel will work by blocking traffic from Epping Road, a bit like the cross-city tunnel.

I thought State Government funding of infrastructure was about serving the people, not lining the pockets of corporations, by poorly drafted contracts which makes taxpayers subsidise impacts of things like better public transport.

 

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