QF Contra for Pollies

[capt.cynical]

:suspect:
From Crikey.com.au

9. Time to shed light on Qantas's sweet deal for MPs


By Stephen Mayne, still yet to see a politician in the Qantas Club

The saga of Peter Costello's kids being upgraded to business class against their father's express directions for that flight home from LA in January raises plenty of questions about the culture within our national airline. We all know that airlines possess a commodity – food, drink and comfortable travel away from the masses – that is highly sought after so the big question is what they charge, or don't charge, for the service.

Back in December 1998, I was working in Sydney on The Daily Telegraph when someone associated with the Transport Workers' Union invited me to see a stage performance in Melbourne. This seemed rather odd at the time but we had a lovely business class flight down, all of which apparently came gratis from Qantas as they looked after the union bruvvas.

But the largesse spreads far wider than a few key unionists. Qantas has long been known for throwing free flights at travel hacks in return for gushing pieces and we also saw through the cash for comment saga that Qantas was happy to pay Alan Jones and John Laws with a combination of cash and free first class flights.

However, it is Federal politicians who are on the greatest Qantas free ride going around, most notably through their automatic membership of the Chairman's Lounge, which is worth thousands of dollars a year for each and every MP, plus their nominated partner. Ever wondered why you never bump into a politician in the Qantas Club? They're all over lapping it up in the Chairman's Lounge.

In any other corporate case, could you imagine an MP in receipt of thousands of dollars of contra being perceived to be, or actually being fair and balanced, in their policy deliberations? This Qantas largesse is the equivalent of Telstra paying all MPs' home phone bills or PBL annually giving $2,000 worth of free gaming chips to every federal MP.

It just shouldn't be happening so we're interested to find out more about this rort. Is it something that Qantas voluntarily dishes out as a strategy to keep sweet with the politicians when it comes to policy issues such as opening up the Pacific Route to more competition? Is it a bargaining chip they could dump at any time if regulation got a bit intense?

Is it a throwback to the days when Qantas was government owned? Or does the taxpayer shell out some whacking great sum each year for the privilege. If so, how much? Is it capped?

Unlike us ordinary folk who would have to pay fringe benefits tax on such a perk, the hypocritical federal pollies suffer no such ignominy for supping at the Qantas trough. So many questions, yet so few answers. Anyone who can shed some light on this or just wishes to let off some steam should email [email protected].
:ugh:

[gigs]

oh really the whole culture of qf is so above board is not funny they are just goody too shoes fancy saying what your saying!!!!!!!!!!

[sydney s/h]

I'm glad they do dodgy stuff with the govt. Somethings like the US flights will help keep us in a job!

It's the least Geoff can do!

[capt.cynical]

From; crikey.com.au



2. The Jackson family, Qantas, Japan and the ski resort development that wasn't


By Stephen Mayne

Many publishers, broadcasters and journalists know that feeling after a strong but contentious story first hits the public domain. What will be the reaction? Is it right? Will they sue? The best response is usually silence – because then you know it's right. However, too much silence isn't a good thing because it also sometimes means that the rest of the media don't follow up your cracking yarn. And so it was with this package of sealed section items in December 2004 which began with this tip from a skier:

Is it simply a coincidence that Qantas have re-introduced flights, twice weekly I believe, to Sapporo in Hokkaido, Japan? A couple of Australian chaps, Melbourne Minter Ellison lawyer, Roger Donazzan and Australian Alpine Enterprises managing director Colin Hackworth have purchased a defunct ski-resort (Niseko Hanazono) and are promoting it here in Australia.

Fortunately for them Qantas have started flights out of Cairns using Australian Airlines. Roger Donazzan is, of course, married to Margaret Jackson, Chairman of Qantas. Having the flights recommence certainly won't hurt the chances of the lads making a buck.

This is a cracking story but it never went anywhere. Well, plenty has happened over the past 18 months as this Japanese spy explains:

Back in late 2004 Crikey ran a couple of pieces about the adventures of Roger Donazzan (husband of Margaret Jackson) and Colin Hackworth, who were being feted at the time for buying the defunct Hanazono ski resort in Niseko, in the northern Japanese island of Hokkaido and announcing plans to build an 8,000 bed mega-million dollar "world class human-scale ski-in, ski-out village".

Both the intrepid would-be developers have been swanning around the Niseko area in a very nice Range Rover since having purchased and, in Hackworth's case at least, substantially renovated ski villas in the neighbouring town of Hirafu (significantly NOT in the Hanazono area they want investors to commit to), but every time a key development deadline has arrived, they have ducked and weaved and announced "unavoidable delays to make absolutely sure all the groundwork is in place".

Throughout the winter season just ended, Donazzan and Hackworth continued to hold "investment seminars" for visiting skiers from Australia and elsewhere - odd affairs held in a retail shop their company operates in the main street of Hirafu at which the bemused onlookers - who seemed to gather more for the free wine than anything else - were treated to the spectacle of the silver-tongued marketing wizard Hackworth leaping on to a chair and attempting to enthuse all present with a stirring "Hanazono, Hanazono Oi Oi Oi".

Perhaps it is no surprise to have heard in the past week from a source within Tokyu Corporation, the company that sold Hanazono to the lads for a reported $2.5 million, that the game is now up. Colin Hackworth has told senior people around town that they know they will not raise the necessary money proceed to build even one single part of the grandiose scheme, and that the project is now on the market for around $9 million.

One can't help thinking that it will indeed need to go for $9 million so that the original investors (whoever they were) might see some return on their "investment". Curious observers have long been wondering who was footing the bill for the apparent extravagance. The same observers, and many others in Niseko, are now wondering whether the demise of "Mr Jackson's" dreams might have any impact on Australian Airlines' direct flights to Hokkaido, which were cranked up just about the time the original Hanazono purchase was announced.

Given the discussion we're having about perks at Qantas, it would also be interesting to know who paid for what when Donazzan and his development team travelled to and from Australia. If Australian Airlines isn't yet making a profit on the route, Margaret Jackson should be feeling a tad uncomfortable because this isn't a good look.
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3. Qantas and the political perks rort


By Stephen Mayne, humble Qantas Club member who has never been upgraded

It looks Advertisement
like we're onto something big with our examination of Qantas, the Chairman's Lounge and the allocation of perks and upgrades more generally by the national airline.

First, to the facts. There is no government payment for the Chairman's Lounge memberships offered to all Federal MPs as this is something which Qantas believes should be paid for by its shareholders voluntarily. It is worth noting that when Ministers travel, whatever entourage they have with them is also ushered into the Chairman's Lounge – something which Ministers exploit to the full as a source of glad-handing and patronage.

And the lurk extends down into the bureaucracy because Qantas influences not just Ministers but senior public servants in the same way through Chairman's Lounge memberships, free upgrades and frequent flyer points – which the public servants and politicians take with them as a generous free gift when they retire.

This also means that politicians and senior public servants have an incentive to travel more frequently – especially when it is always business class. The market value of all these benefits would run to many millions of dollars a year and the cost to Qantas shareholders would exceed $1 million.

This huge rort is not a hangover from when Qantas was government owned – in fact, the lobbying of Ministers was not something that the previously government-owned Qantas did to anything like the extent that the privately-owned Qantas does.

The standard entitlements for our political and senior public service class are business class travel within Australia but the best summary of all the benefits is not on any official departmental website because the highly secretive Finance Department provides none of these details online. However, our good friends at the Parliamentary Library did produce this fascinating guide.

Arrangements for ministerial travel in Australia are handled in the same way as those for MPs and Senators. However, overseas travel comes under prime ministerial control as you can see towards the end of the official Ministerial Guidelines.

In terms of the huge Qantas frequent flyer rort, some Ministers have accumulated millions of points over the years and there are in effect no restrictions on them using these for their own purposes after they leave the Parliament. There is a very weak guideline encouraging them to use up the points but it is almost universally ignored as The Age reported last year.

So what does Qantas get in return for its investment? Government favours of course. No ACCC chairman has had a concerted go at Quantas's regular abuse of market power which has helped send half a dozen airlines out of business over the past 15 years.

And when Ansett collapsed, it was quite outrageous how the PM's Ansett Taskforce tolerated Qantas making a successful grab for those vital extra landing slots and gates at Sydney Airport, giving it a huge advantage over its rivals. Crikey has been told that policy deliberations inside the taskforce at the time were influence by the common perception that "the Prime Minister likes Qantas". He likes chairman Margaret Jackson so much that she was even offered the keys to Yarralumla.

And why wouldn't the Howards like our national airline when you consider the duchessing that our first lady receives. The PM usually travels in the government jet, but his family members are treated better than royalty – every whim catered to, nothing too good for Janette who, if she travels, tends to have a charming Qantas PR person assigned to look after her.

One isolated upgrade for the Costello kids sounds like it could just be the tip of the iceberg. Has the PM ever disclosed family benefits from Qantas and who paid for what when Richard Howard headed to the US in 2004 to work on George W Bush's re-election campaign? Hmmm, we might just be onto something here.

All of this barely scratches the surface of what poured in yesterday so keep the tips and feedback coming to [email protected].

[barrheadboy]

capt cynical. regarding costellos kids the qantas catering management must have had their bonus up to the top of the tin to cater for the extra meals and drinks i pay 10,000 dollars for my ticket upstairs and on the last 3 international sectors i have flown i have not been able to have the meal of my choice due to under catering and maybe the ies was working also hope they are on the next flight that i am on might get some where then

[qcc2]

its not only politicians who get the cream. in addition you have travel agents with good airline contacts, every senior marketing or sales guy /girl in the industry who travel FREE and at the pointy end. it does not even show in the booking. my understanding is industry people swap tickets between airlines at no cost (taxes excluded).:E

[Animalclub]

its not only politicians who get the cream. in addition you have travel agents with good airline contacts, every senior marketing or sales guy /girl in the industry who travel FREE and at the pointy end. it does not even show in the booking. my understanding is industry people swap tickets between airlines at no cost (taxes excluded).:E

There's some pretty naive (sp?) people out there.

It happens in all industries. No matter what job you have there are always perks, small and large, of one kind or another provided to encourage you to either sell a certain product or do a favour for someone or other. It's just another form of bribery - and it works.

[Ronnie Honker]

Throughout the winter season just ended, Donazzan and Hackworth continued to hold "investment seminars" for visiting skiers from Australia and elsewhere
This now explains my accountant's (obviously tax deductable) trip to Niseko last winter, when he took the wife and kids along as well.
I wonder if the ATO will examine his claims as closely as he vets my deductions.
(BDO Kendalls is his employee company, in case anyone was wondering).
Yes, what a STRANGE co-incidence that QANTAS - under The Dame and Darth's control - saw fit to re-start twice weekly services to the airport nearest to Mzzz Jackson's partner's newly acquired ski resort.
Things are starting to stink in Cantberra under Little Johnny Rotten's leadership and his (and George Bush's) love of big business heads who love bashing the worker, whilst greedily lining their own purses........in MY opinion.

Question for my accountant:
Of the time you spent away in Japan, how much of it do you apportion directly to work-related activities, and how much to personal holiday time?

[upupaway]

One should never let the facts get in the way of a "ripping yarn", so sorry to disappoint. See crikey's apology below. Worth pointing out that Stephen Mayne is a vindictive a***hole, extremely adept at pushing the class war buttons. Don't tell him what pilots earn (anything over $60k and you're rich bastards), or you/we will all be next...

Comments, corrections, clarifications, and c*ck-ups

Roger Donazzan, Executive Chairman of Harmony Resorts, owner and developer of the Hanazono Village at Niseko in Japan, writes:
Our companies have owned “Hanazono” for approximately 18 months. The shareholders of Harmony Resorts are a group of very reputable and respected Melbourne and Sydney business people, including myself and Margaret Jackson, my wife. Since December 2004, we have established, developed and run operations, including Niseko International Ski School, Demo Ski Hire, Fusion retail and running lifts, terrain parks and nature adventure parks (all on our webpage (http://www.skihanazono.com/)). We have master planned our village using Ecosign Master Planners from Whistler Canada, one of world's foremost master planners, and in November 2005 selected the architectural firm Riccardo Tossani Architects of Tokyo to finalise our masterplan. The first building is a 4-5 level 130-plus apartment building incorporating commercial and retail space to service 500-plus guests the first building will accommodate plus casual visitors who will be attracted to Hanazono. We have also have undertaken engineering and infrastructure audits and reviews and costs for a possible 8000-plus bed village. Our first building ground works will occur late this green season and our first building is programmed to open December 2007. We have on retainer the Sonnenblick-Goldman International property investment bank of Tokyo, who have been fielding Joint venture and development partner offers for us. Neither Hanazono nor any of its assets nor HRN has at any stage been on the market for sale at $9m or any other amount. We have always said that we are long term owners and developers of Hanazono. That is still the case. Through Sonnenblick-Goldman we have been attempting to identify and secure the participation of international and experienced capital and development parties in the hospitality and resort arena to bring both their know-how and capital to us as joint venture and funding partners. We have always publicly said that was the case. Whilst the building of the odd few buildings is within our own capability to deliver an 8000 plus bed resort certainly requires the partnership with a recognised, experienced and capital rich party. We are close to securing that international and very significant and well qualified party, in fact we are at Indicative term sheet stage. Due to confidentiality agreements I cannot say more about that right now. But irrespective of that potential partner, our first building and preliminary core village development components are in train and are proceeding as we have always said for a 2007 opening. The securing of the partner just means much more will happen more quickly. We have never run investment seminars. We do have a weekly cocktail party at our Fusion retail store, where we tell our visitors in general terms what we plan to do in the future at Hanazono. We have over 900 names and details of people who have indicated already they would like to be part of what we intend to create at Hanazono. I have never in any way used any relationship with Margaret in my dealings with any airline or tour operators. Aside from such activity being totally improper, these are not my areas of responsibility. I am in charge of the property and JV side of the business. I have never improperly made use of any information or rights or travel rights relating to me as part of Margaret Jackson's family. Crikey's article by Stephen Mayne (Item 2, Friday 7 April) is totally false, incorrect, misleading and has caused myself and my wife significant reputation and financial damage. It also has caused significant reputation and financial damage to Harmony Resorts Niseko Pty Ltd and of Niseko Harmony Resorts KK, and continues to do so. Your employee, Stephen Mayne, also repeated these scurrilous and untrue statements on the ABC drive time radio programme on the same day.

CRIKEY: We did not contact Roger Donazzan for his comments before publishing Friday's item, which we should have done. And based on the content of his letter above, we accept his assurance that the Hanazono resort is well under way towards completion – which means our item on Friday was not correct. Our apologies to Roger Donazzan, Margaret Jackson, Colin Hackworth and all concerned.

[YesTAM]

Nice letter to Crikey, but reading through the verbiage, it translates to "They still haven't got the money", master plans and retained advisors notwithstanding.

The question of how and why Qantas is servicing Sapporo is still unanswered.
To put it another way, I have a master plan for a diving holiday resort in Kaviang. It will have a 500 bed hotel, beachfront apartments starting at $2.0 million each, two golf courses, one designed by Greg Norman and the other by Tiger Woods.

There will be a Scuba school with its own special pool, ten of the most luxurious eighty foot catamaran live aboard airconditioned dive boats sleeping twenty divers each. These boats will be crewed and provisioned to five star hotel standards.

Kaviang International airport is being upgraded by the local government to cater for B747 and A380 aircraft and travel agents and hotel companies have been retained as has Christies to sell the apartments. The architects, Lawyers, builders and engineers are all "retained". They are the biggest names in the world.

How do I get Qantas to fly direct to Kaviang?

[tipsy2]

Question

How do I get Qantas to fly direct to Kaviang?


Possible Answer

Get your wife appointed to the Board:D and it's spelt Kavieng

tipsy:ok:

[Chronic Snoozer]

Talk to Stoddart, you might be on to something there!

[upupaway]

I think yesTAM forgot to point out that the SLF's were bloody good. Can't see there is anything wrong with putting on air services to destinations that people want to go. That route was a lot more successful than many of their other routes.

Kavieng sounds good.

[B A Lert]

It's about time this nonesense was put to sleep? Anyone who has been around Qantas will know that Qantas has been operating to Sapporo on an "on and off" basis for many years, and long before anyone at Qantas had ever heard of Margaret Jackson. :ugh: