Metherell creates crisis for NSW Liberals

May 20, 1992
Issue 

By Barry Healy

SYDNEY — The first week of the Independent Commission Against Corruption inquiry into the Terry Metherell scandal has been a difficult one for Premier Nick Greiner. Far from encouraging the fiasco to fade quietly, the inquiry has sparked spectacular headlines every day.

The hearings, which began on May 11, may end in Liberal Premier Nick Greiner's political demise.

Terry Metherell dropped a bombshell on the first day, when he delivered his personal diary to ICAC. It contained not only damaging allegations about Greiner's approaches to him leading up to the now notorious Environmental Protection Authority job offer but also his blunt assessments of other leading political and media figures.

The daily papers have had a field day freely quoting what would normally be defamatory material under the protection of ICAC privilege.

By the end of the week Greiner, environment minister Tim Moore and Liberal backbencher Brad Hazzard had changed crucial dates in their stories in response to Metherell's diary notes.

The most damaging allegation so far has been Dr Metherell's claim that Greiner "improperly" approached him about the job application on March 9 during a phone discussion lobbying for the government's logging legislation. Metherell said that Greiner had told him that his support for the government's bill would be "useful" in resolving the other matter they had been discussing. Metherell says he took this to mean his interest in the EPA job.

Greiner had previously told the press — and ICAC in a sworn submission — that he had not had contact with Metherell until well after that date, but after Metherell's testimony Greiner's lawyer admitted that the earlier date was correct. Under days of cross-examination, Metherell maintained that his vote on that legislation, which had surprised observers, had not been influenced by Greiner's approach.

On May 15, Tim Moore admitted to ICAC that he had created the EPA executive position with Metherell in mind. He had done so, he said, in order to help a long-standing friend. He wanted to appoint him without advertising or interviewing for the job because, he said: "Friendship came into being prepared to adopt an unorthodox philosophy or approach to it".

Greiner's testimony when proceedings resume on May 21 is now crucial to his survival as premier. So far no public challengers to Greiner's leadership have surfaced from within the Liberal Party, but t of ICAC commissioner Ian Temby could result in a political crisis within weeks.

If Temby brings an unfavourable finding, Greiner would have little choice but to resign or be dumped. The ALP and Democrats will be demanding a recall of parliament in that event to try to force through a motion of no confidence in the government with the support of the independents, who hold the balance of power.

This could bring on an immediate election, or parliament could pass a motion of confidence in Bob Carr. Carr could then choose to govern for the remainder of the four-year term or call an election.

The role of the independents would be crucial. Their only bargaining chip is the fine balance of numbers in the existing parliament. They might find it to their advantage to support a motion of confidence in another Liberal who would be more reliant on them, rather than risk an election which some of them may not survive.

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