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I
Inquiry could subpoena MPs
Many declined invitations
The Senate committee investi
gating the Victorian loans affair
could force state politicians to
appear before the inquiry if they
fail to take up the latest friendly
offer to get them to attend.
The Senate select committee
on the Australian Loan Council
decided yesterday to write to a
number of state politicians and
formally invite them to appear
after many declined a more gen
eral invitation issued last year.
The committee was set up last
year to review Loan Council op
erations after Victoria exceeded
its authorised borrowing limit.
Although the committee has
not threatened to issue subpoe
nas yet, the chairman and Aus
tralian Democrats Leader, John
Coulter, said it had advice it
could summon state politicians.
The state politicians include
former Victorian Premier Joan
Kirner, former Victorian Trea
surers Tom Roper and Tony
Shechan and former Minister
Assisting the Treasurer David
White, the NSW Premier, John
Fahey, and former South Austra
lian Premier John Bannon.
All will be asked to reply with
in 14 days to the formal invita
tions to help resolve outstanding
questions about controls over
state borrowings.
NSW Liberal senator and
committee member Bronwyn
Bishop said if the politicians
choose not to attend, "then
stronger action by the committee
may be required".
The Deputy Clerk of the Sen
ate told the committee it does
have formal power to summon
witnesses such as Mrs Kirner
and Mr Sheehan, but advised
caution in the exercise of that
power and recommended asking
the relevant state House to re
quire its members to attend.
Senator Coulter said yesterday
the committee was not a political
witch-hunt.
"It's not good enough for the
Commonwealth and state gov
ernments to close ranks and re
fuse to justify their past
borrowings to a public inquiry,"
he said.
But the committee appears
unable to do anything about the
federal Treasurer, John Dawk
ins, who has also refused to ap
pear before it to field questions
about when he first knew about
the loans blow-out, and why ac
tion was not taken earlier.
As a member of the lower
House, Mr Dawkins has said he
cannot be compelled to appear
before the committee, while the
Prime Minister, Paul Keating,
has said he would not allow it.
Victorian officials breached
the limits last year through their
$1,267 billion in borrowings,
prompting Opposition claims
that Mr Dawkins did not inform
other state Loan Council mem
bers and kept the breach secret to
protect the then Victorian ALP
Government.
Treasury officials were expect
ed to give further evidence yes
terday and shed'further light on
that issue.
However, a delay due to a pri
vate committee meeting about
the subpoena issue.meant Trea
sury and the Auditor-General
will not reappear until a day to
be set next week.
The Government has declined
to release Treasury documents
which could indicate when the
Treasurer first knew of the loans
blow-out.
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