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| Issue No 112 |  |
21 September 2001 |
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NewsRevealed: Anderson Ignored Ansett Early Warnings
Evidence is mounting that the Howard Government was complicit in the collapse of Ansett, with new documents showing it was aware of the threat of collapse more than a month ago. An August 14 letter from Air New Zealand Chairman Dr Jim Farmer to John Howard makes a mockery of the Government's claims it was ignorant of the crisis facing Ansett and raise serious questions about the Howard Government's commitment to get Ansett flying again. "This letter makes a number of things very clear," ACTU Secretary Greg Combet says. "One - John Anderson and his department met with representatives of Air New Zealand on several occasions prior to August 14 and had been provided with financial information regarding the 'very serious losses of Ansett'. Other documents also confirm that John Anderson was told in June that Ansett was losing $18 million a week. "Two - John Anderson's continued support for the Qantas plan to buy into Air New Zealand was a significant impediment to a resolution to Air New Zealand and Ansett's problems. "Three - John Howard and John Anderson were aware that Air New Zealand and Ansett were facing a serious liquidity crisis which would cause 'major disruption to the business' if the situation was not resolved before September. What this letter proves is that John Anderson has misled the Australian public about the extent of his knowledge of Ansett's problems." Combet says the letter painted a picture of a Minister who failed to take any action while Ansett, the jobs of 17,000 Australians and 40% of the Australian aviation market hung in the balance. The Federal Government's closeness to Qantas had also hindered Ansett's chances of survival, Mr Combet said. John Howard revealed in Federal Parliament on Wednesday (September 19) that the Government had based its view of Ansett's financial situation on a briefing it received from Qantas, despite receiving contrary information from Air New Zealand. "All of this information tells us that the Howard Government bears a substantial responsibility for the collapse of Ansett," Combet says. "The issue now is does John Howard support the objective of saving Ansett - or does he want to liquidate it and destroy 17,000 Australian jobs and essential regional transport services. "The answer appears to be that John Howard is the liquidator."
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   Interview: Exit InterviewMichael Costa looks back at his 14 years with the Labor Council to chart the highs, the lows and the bits in between. Parliament: Opening SalvoIn his Maiden Speech, delivered this week, Costa gave vent to his views on immigration, Marx, globalisation and mental health. Scandals: My Evil TwinCo-conspirator and 'intellectual soulmate' Mark Duffy recounts the legendary 'Leaked Paper' Affair and how its predictions soon came to pass. Politics: An Agent for ChangeFormer secretary Michael Easson argues that Costa was instrumental in redefining the factional balance in NSW in the wake of the Cold War. Review: The Thoughts of Chairman MCNeale Towart trawls the collected works of Michael Costa and looks at his love-hate affair with Marx. Factions: Kyoto SunsetNaomi Steer - the first left-winger to work at Labor Council in decades - recalls how she discovered the real Michael in a Karaoke lounge. History: A Proud TraditionFormer Premier Barrie Unsworth argues Costa enters Parliament as the best qualified Labor Council leader ever to make the transition. Psychology: The Man Behind the MaskCosta's predecessor Peter Sams argues that behind the bluff facade lay a loyal and caring friend. Seduction: Michael and MeChris Christodoulou recounts how Costa convinced him to cross the factional divide and take up residence in Sussex Street. Satire: Ode to LeonLong-time sparring partner, Peter Botsman submits this lyrical tribute to Costa's career.
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