Anne Davies April 3, 2013 - 12:56PM
Ian Macdonald: signed deal in restaurant. Photo: Edwina Pickles
The corruption watchdog has heard how a senior staff member for Ian Macdonald was directed by the minister to consult with former union boss John Maitland on a crucial letter inviting his company to apply without tender for an exploration licence in the Hunter.
Jamie Gibson, who was the former Primary Industries minister's chief of staff, testified at the Independent Commission Against Corruption that he was told to write that there was industry support for the proposal.
This was despite Mr Gibson knowing that the Minerals Council of NSW was opposing the establishment of the training mine. The letter said the Minerals Council of Australia was supporting increased training and that the mine had support from many of the NSW council's industry members.
The ICAC is investigating the decision of Mr Macdonald to grant a coal exploration licence to a group of Newcastle investors, including Mr Maitland, at Doyles Creek in the Hunter without tender and against departmental advice.
Earlier, Mr Gibson had agreed that the decision to seek a template from the department and draw up the invitation to apply for the licence within the minister's office was unprecedented and "extraordinary".
He said he had advised the minister that it was usually done by the department and he could direct them to do it, but Mr Macdonald "seemed in a hurry" and did not want to deal again with the department's objections.
Asked whether he formed the view that the minister had already made up his mind about the proposal , despite vehement departmental objections, Mr Gibson said: "It seemed to me the minister was always going to do this."
Mr Maitland came to Governor Macquarie Tower on the same day, August 21, 2008, to collect the letter. After the ministerial invitation was granted, the rest of the process to apply and allocate the licence was a formality only.
Mr Gibson told of a dinner in a private room of the Nippon Club in November, attended by the minister, Mr Maitland and another executive of Doyles Creek Mining, Craig Ransley, in which the three talked enthusiastically about the project. Mr Maitland paid the bill.
There was also another dinner at the upmarket waterfront restaurant Catalinas when the minister signed the licence at the table. The restaurant had been chosen by Mr Macdonald, who always picked the dining venues, Mr Gibson said.
It was the first time that Mr Gibson had seen the minister sign a mining licence in a restaurant in front of the proponents.
"Personally, I was quite worried about that," he said.
The hearing continues.
