FED: New conduct code lowers hurdle, says Labor

AAP General News (Australia)
02-10-1999
FED: New conduct code lowers hurdle, says Labor

CANBERRA, Feb 10 AAP - A new code of conduct which allows ministers to keep shares and
investments in companies lowered the hurdle for government frontbenchers and their staff, the
federal opposition said today.

Under the new rules tabled yesterday in federal parliament, ministers and parliamentary
secretaries will be allowed to use blind trusts or outside nominees as a way of keeping their
investments in companies associated with their portfolio areas.

Prime Minister John Howard said the changes were only minor and did not represent softer
standards.

But opposition public administration spokesman John Faulkner said the new code lowered the
hurdle for government frontbenchers and their staff.

"By any measure this is a weakening of the previous standard," Senator Faulkner said.

"John Howard has no credibility on standards.

"He failed to apply his original code of conduct in his first term.

"The problem with John Howard's original code of conduct was not the quality of its
content, but the prime minister's lack of resolve in implementing it."

Mr Howard foreshadowed the changes last year during his defence of then resources minister
Warwick Parer, under attack for his family trust's continued $2 million interest in a
Queensland coal mine.

Under the revised rules, ministers must ensure they retain no control on the operation of
the trust.

But they will be allowed to pass on their shares and investments to their adult children.

Mr Howard said last night balance was needed in the code of conduct provisions so as not to
scare off successful business people from serving in the federal parliament.

"We've got to be realistic about it," he told Channel Nine.

"You need a balance. And at the moment we're heading towards an imbalanced situation that
anybody who's accumulated a few bob, who's been successful in business, is being scared out of
going into public life."

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KEYWORD: CONDUCT DAYLEAD

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