Vic: Labor accuses Vic Libs of huge slush fund

AAP General News (Australia)
02-01-2001
Vic: Labor accuses Vic Libs of huge slush fund

By Catherine Chisholm, State Political Correspondent

MELBOURNE, Feb 1 AAP - The Victorian Liberal Party needed to end the secrecy surrounding
the source of a massive political "slush fund" and asset base totalling $60 million, the
Labor Party's state secretary said today.

David Feeney called on Opposition leader Denis Napthine to reveal where the money came
from and whether this "fabulously wealthy" party's decision making process was distorted
by these groups and donations.

"I want them to explain to the people of Victoria where the $60 million came from,"

Mr Feeney told reporters at the launch of an audit by accountants Sims Lockwood today.

But Liberal Party state director Brian Loughnane said the $60 million figure was a
beat-up by the Labor Party.

"It is a total beat-up without foundation," he told AAP.

Mr Feeney said one entity, the Cormack Foundation, had an estimated asset base of $50.3
million and had injected donations of $1.45 million and another of $800,000 into Liberal
Party coffers.

"This is by far a vast sum of money, the largest political slush fund probably in Australia
today, the largest political slush fund certainly in the history of Victorian politics,"

Mr Feeney told reporters.

He said the source of the $50.3 million was a secret, while the Cormack Foundation
maintained it was not an associated entity and should not have to report.

Other associated entities were Vapold with estimated assets of $7 million and donated
$78,500 in 1999-2000, Addlib which donated $148,575 in 1999-2000 and The 500 Club which
donated $520,000 in 1999-2000, he said.

"These secret millions are why the Liberal Party opposes electoral funding and disclosure
reform here in Victoria," he said.

The Liberal Party's total asset base, with its associated entities, was 15 times larger
than the state's Labor Party at $3.8 million, he said.

The Labor Party was an open book and details of all its contributions were available
on the Internet, Mr Feeney said.

Mr Loughnane said the Cormack Foundation was established from the sale of a radio station
3XY for around $2 million in 1988.

He said all information about the Liberal Party sources of funding were on the Internet.

"We are fighting to earn every dollar that we raise," he said.

He said the Labor Party remained almost totally dependent on contributions from a narrow
trade union base.

Earlier today Dr Napthine said he was not aware of the Cormack foundation.

An Australian Electoral Commission list of donations to both parties was released today.

Companies listed include Kerry Packer's Publishing and Broadcasting Ltd which donated
$100,000 to the Labor Party Victorian branch in 1999, before the Frankston East supplementary
election.

Mr Feeney said most donations were pledged in advance and there was no connection between
contributions made to the party and decisions made by parliamentarians.

Other donors listed on the Internet were Pratt Holdings with $200,000 to the Victorian
Liberal Party and $140,000 to the Labor Party national secretariat, and Hudson Conway
Management donating $50,000 to the Victorian Labor Party.

AAP cmc/jlw/cjh/

KEYWORD: SLUSH NIGHTLEAD

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