Katherine Rich MP
National Party SOEs Spokeswoman
20 June 2006
No cronyism – yeah right
Trevor Mallard’s denial that state-owned enterprise boards aren’t weakened by cronyism was dealt a body blow today by
findings of a Victoria University survey of SOE directors.
Dr Richard Norman, of Victoria University’s Management School, surveyed directors of nine SOEs. The directors were
concerned appointments were being made for political or diversity reasons – not for their capabilities.
Dr Norman said: ‘Responses indicate the process for selection is too arbitrary, lacks adequate input from the chair and
board, and is too heavily weighted towards political acceptability and correctness rather than capability.’
“That’s a polite way of saying boards are bogged down with party-friendly hacks who don’t have the business skills or
judgment to make multimillion-dollar decisions,” says Mrs Rich.
“While SOEs Minister Trevor Mallard says he’s appointing good Labour Party people, clearly board members who sit around
the board table with them don’t think so.
“He continues to bat away criticism of cronyism, but here it is confirmed in black and white by the SOE directors
themselves.
“Perhaps he should start talking to his boards, and he might find out a thing or two about what the consequences of his
cronyism is.
“One of National’s biggest concerns with Mr Mallard’s plan to expand SOE activities is whether they have the commercial
aptitude to do so.
“We know Mr Mallard hasn’t, but to have directors themselves questioning the appointment process raises even more
concerns.”
ENDS