Macdonald was called 'Obeid's left testicle', ICAC told - Newcastle Herald

March 26, 2013, 12:30 p.m.

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  Ian Macdonald: known as Eddie Obeid's "left testicle", ICAC told. Photo: Rob Homer

  
  


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  Scathing attack: Luke Foley. Photo: Nic Walker

  
  


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  Eddie Obeid. Photo: Dallas Kilponen

  
  

A senior figure of the NSW Labor Left has told the corruption watchdog of his attempts in 2006 to strip the former primary industries minister Ian Macdonald of his preselection for the NSW upper house after receiving a "chorus of complaints" about his conduct.

"One of his nicknames was, he was Della's [John Della Bosca's] pet crocodile. The other was that he was Eddie Obeid's left testicle," former NSW Labor assistant secretary Luke Foley told the Independent Commission Against Corruption.

"There was a view he was an agent and operative of Eddie Obeid and the Terrigal group," he said.

"I formed the view that he had lost his moral compass and was not fit for office," Mr Foley said.

Mr Foley delivered his scathing assessment of Mr Macdonald's behaviour at a lunch at the Noble House restaurant attended by senior Left figures, including federal MP Anthony Albanese, and senior members of the Amalgamated Metal Workers Union, who were highly influential in the Left and in particular in the "hard left", a sub-faction to which Mr Macdonald belonged.

Mr Macdonald vigorously disagreed, Mr Foley said.

The Independent Commission Against Corruption is investigating the decision of Mr Macdonald to grant a coal exploration licence to a group of Newcastle investors – including ex-union boss John Maitland – at Doyles Creek in the Hunter, without tender and against departmental advice.

Mr Macdonald told the lunch that he enjoyed the unqualified support of the Miners Union, which was headed by Mr Maitland. He also had support from the AMWU. Mr Macdonald said he had a great desire to go to the Beijing Olympics and that he still had to support his daughter.

Mr Foley said on that basis the realpolitik was that Mr Macdonald had support to continue in Parliament, though an agreement was eventually struck for Mr Macdonald to retire in 2009 – which he then breached.

Earlier, former NSW premier Nathan Rees said his ministers were expected to bring decisions that had a major impact on revenue – such as whether to forgo a multimillion-dollar upfront payment for a coal licence – to cabinet for discussion.

The need to find state revenues was particularly pressing during 2008, when the state budget was under pressure from the global financial crisis, he said.

Mr Rees said that cabinet ministers should not allow themselves to be wined and dined by interests that had a live issue before them, such as whether to grant a coal licence.

Mr Macdonald had numerous meals in upmarket restaurants with Mr Maitland and his fellow investors before he granted the licence by direct allocation, against departmental advice.