TABLE OF CONTENTS
...
PREFACE
111
MEMBERS OF THE CO-E
V
ACKNOWLEDGEMENTS
vi
TABLE OF CONTENTS
vii
KEY POINTS
xvii
FINDINGS AND RECOh4MENDATIONS
xxi
1
PART I
CHAPTERl- INTRODUCTION
The establishment of the Senate Select Committee
3
The background to the 1991 bids for John Fairfax Ltd
4
The l9Yl Parliamentary inquiry into the print media
5
Political lobbying by parties to the Fairfax bidding process
5
The structure of the Tourang bid for Fairfax
6
The restructuring of Tourang
8
Criticism of the role of the Foreign Investment Review
Board
10
The 1993 decision to increase The Telegraph's shareholding
in Fairfax
10
Structure of this report
12
vii
CHAPTER 2 - CONDUCT OF THE INQUIRY
Significance and appropriateness of the inquiry
15
Procedural considerations
17
Written submissions
18
The list of witnesses
18
Use of the committee's power to summons witnesses
19
Claim of public interest immunity by the Treasurer
21
Justified or unwarranted secrecy
29
Sub-judice matters
30
Conclusion
31
PART II -
THE PERCENTAGE PLAYERS:
35
THE 1991 AND 1993 DECISIONS
CHAF'ER 3 - THE 1991 DECISIONS
Background to the decisions
37
John Fairfax Group prior to receivership
37
The Fairfax auction process
38
THE PLAYERS: IN DETAIL
40
Receiver and manager
40
Advisers to the receiver and manager - Baring Brothers
Burrows (Barings)
40
THE BIDDERS IN THE AUCTION
47
Australian Independent Newspapers
47
...
Vlll
Independent Newspapers plc
48
Tourang
49
THE BIDDERS' EVIDENCE TO THE COMMITTEE
50
AIN
50
Errors of fact and analysis in FIRB Minute and
inappropriateness of FIRB's procedures
51
Antagonism towards AIN
56
The 'national interest' and definition of control in foreign
investment proposals
61
INP
62
INP's FIRB experiences
62
INPs bid for an increased share in APN
64
TOURANG
64
Who said what at the meeting of 18 July 1991?
65
Mr Packer's withdrawal
69
Tourang 11's application to FIRB
70
PRIME MINISTER MR HAWKE
15
Ministerial freedom
15
Mr Hawke and Mr Black
16
TREASURERS
79
Mr Keating
19
Mr Kerin
79
ix
Mr Willis
79
Mr Willis - outstanding questions
79
Mr Dawkins
80
FIRB
81
FIRB's Treatment of AIN
81
Questions for Mr George Pooley
82
Questions for Mr Tony Hinton
83
Questions for Dr Darryl Roberts
84
FIRB's request to Barings on 6 December 1991 for
information about AIN
85
'National interest'. does FIRB know what it is that it's
advising on?
88
FIRB Guidelines
90
Release of confidential information - how did Mr Black
know what the FIRB recommendation to the Treasurer
was?
90
CONCLUSION
90
CHAmR 4
-
THE 1993 DECISION
Introduction
93
Background
93
FIRB procedures
96
Treasurer Dawkins
97
Conclusion
99
X
PART Ill -
BALANCED COVERAGE
CHAPTER 5
-
101
CONSIDERATIONS RELATING TO
THE CONTENT OF NEWSPAPERS
Conversations between Mr Keating and Mr Black
103
The term 'balance' in the discussions
103
The meaning of 'balance'
109
Key points of agreement regarding the conversations
113
'Balance' as editorial control over journalists
113
The first element - the exercise of editorial control at
Fairfax
120
The second element - balance as general biasipartisanship in
political coverage
121
The third element - balance, national interest and cultural
identity
130
CHAPTER6- PROPRIETY
Interactions between governments and the media - previous
experience
139
Summary of Overseas Practices
140
The United Kingdom
143
Canadian reports
146
US approaches
150
Australian inquiries
155
Balance and the propriety of Mr Keating's actions
163
xi
PART lV -
FOREIGN INVESTMENT AND THE FOREIGN
INVESTMENT REVIEW BOARD
171
C H A E R 7 - FOREIGN INVESTMENT POLICIES IN
AUSTRALIA
Overview of foreign investment policy
173
The need for a foreign investment regime
174
Community expectations
175
Australia's obligations to the international community
176
History of foreign investment in Australia
178
FIRB's jurisdiction
181
Foreign investment policy for the media
1x2
Cross media rules
183
Canwest - control and influence
187
Foreign investment policy for newspapers
188
Sources to ascertain government policies relating to
newspapers
189
Newspaper policy in the 1990s
190
Conclusion
192
CHAFER 8 - FOREIGN INVESTMENT
ADMINISTRATION IN AUSTRALIA
FIRB's functions are advisory
193
FIRB as an non-statutory body
196
The FIRB and the foreign investment branch of treasury
197
xii
Past FIRB experience in assessing newspaper applications
198
Change in the culture of FIRB over time
199
Features of the FIRB regulatory system
200
Application guidelines under FIRB
201
Comparison of FIRB with other regulatory or review
agencies
208
Testing the validity and accuracy of information
210
FIRB record keeping and internal processes
211
The Committee's view of FIRB guidelines
212
CHAPTER 9 - THE FIRB DILEMMA
Introduction
213
The government's right to govern .._
214
... versus the public's right to know ...
215
What is wrong with the FIRB model
215
Problems in the design and operation of FIRB
216
FIRB as a processor of applications
217
FIRB and print media policy
218
Accountability
219
The way forward is to start again
221
...
XI11
CHAPTER 10 - A REVAMPEB FIRB
Overview
223
Basic aims of foreign investment policy
223
Restructure of the system
225
Setting the legislative scene
226
Getting the administering agency right
231
Review of FIC decisions
235
FICs Communications Strategy
236
PART V -
VEWS EXPRESSED BY DR HEWSON
CHAPTER 11 - THE VEWS EXPRESSED TO
M R CONRAD BLACK BY
DR HEWSON
237
239
DISSENTING REPORT
THE FAIRFAX INQUIRY A P A R L W N T A R Y
B U C K HOLE
Dissent Page No
INTRODUCI'ION
1
CHAPTER 1 - CONDUCT OF THE INQUIRY
5
CHAPTER 2 - PUBLIC INTEREST
17
lMMuNnY
CHAYIER 3 - FOREIGN INVESTMENT
POLICY AND
PROCEDURES
23
CHAPTJZR 4 - BALANCED COVERAGE
31
xiv
Reservation Page No
1
RESERVATION BY
SENATOR KERNOT
Appendix Page No
APPENDICES
Appendix A
Terms of Reference
1
Appendix B
List of Written Submissions
9
Append; C
List of Witnesses
13
Appendix D
Clerk's Advice on the Compulsion of
Witnesses
19
Appendix E
Opinion of Mr D Jackson QC
25
Appendix F
Further Opinion of Mr David Jackson QC
61
Appendix G
FIRB Minute of 5 December 1991
75
Appendix H
Opinion of Mr Tony Morris QC
93
Appendix I
Clerk's Advice on sub-judice
141
Appendix J
References
151
Appendix K
Treasurer's Letters re: Public Interest
Immunity
159
xv