[Greens-Media] Macdonald’s V8 Supercar mate’s deal – Premier’s latest ministerial scandal

[Lee Rhiannon]

MEDIA RELEASE
29 May 2010


Macdonald’s V8 Supercar mate’s deal – Premier’s latest ministerial scandal

Commenting on the blow out in costs for the Homebush Bay V8 Supercar
Race and the problems associated with Minister Ian Macdonald’s
management of the event, Greens MP Lee Rhiannon has called on Premier
Kristina Keneally to scrap this year’s race and to remove Mr Macdonald
as Events Minister.

In 2008 Ms Rhiannon wrote to the NSW Auditor General asking him to
audit the NSW government’s cost/benefit calculations for the V8 event.

Today’s SMH (page 1, http://bit.ly/btu9D6) reports that the Auditor
General conducted that audit and has found that the negotiations with
the backer of the V8 event were poorly handled and did not follow
established procedures for investing public funds.

“Premier Kristina Keneally has another ministerial scandal on her
hands and she should act decisively,” Ms Rhiannon said.

“Today Ms Keneally should require Minister Macdonald to step aside
from his responsibilities as Events Minister.

 “One of the reasons that I requested the Auditor General investigate
was because Minister Macdonald worked out this deal with his close
friend and political associate Greg Jones.

“Now we hear that the Auditor General has found that under Minister
Macdonald public money was allocated to the V8 Supercars race without
a system to manage potential conflicts of interest. Advice was not
sought from the government's major events body and there was no proper
business case.

“This has all the hallmarks of another dodgy Labor deal for mates and
the ball is now with Premier Keneally to clear up the mess.

“The Premier could well be tempted to side step the Auditor General’s
report to minimise further embarrasment for her government on the eve
of the Penrith by-election.

“But Minister Macdonald’s action clearly demonstrates that he should
no longer be NSW Events Minister.

“Mr Macdonald’s mismanagment of the event has resulted in a costs blow
out. The $35 million cap allocated for the the V8 race over the next
five years will be exceeeded by $10 million, according to the Auditor
General’s report.

“On top of this the economic benefits are ‘at least 24 per cent’ lower
than the estimates used to justify the event when Minister Macdonald
put his case before cabinet.

“Premier Keneally will put her own reputation on the line if she does
not act on the Auditor General’s report,” Ms Rhiannon said.

For more information – 0427 861 568
Website link to Greens’ work on the Homebush V8 Supercar Event -
http://bit.ly/bcTVlx