NBN: Queensland 'Labor mate' being paid $450,000

James Riley
Wednesday, 18 November 2009 11:28

IT Policy - Government Tech Policy

The senior Queensland Labor government staffer hired by the NBN Co to run its external relations program – and who is at the centre of a growing 'Labor mates' controversy – is being paid $450,000, according to documents filed with the Senate this afternoon.

But Government said the appointment of Queensland Premier Anna Bligh's chief of staff Mike Kaiser as government relations and external affairs principal was entirely a matter for the NBN Co, and that no-one from Government was involved.

The Opposition Leader in the Senate Nick Minchin slammed the appointment, calling it outrageous that "a long time Labor Party spin doctor" could be paid $100,000 more than the Prime Minister for a role in a company "that generates no revenue, has no customers and provides no services to anybody."

With the support of cross-benchers Senator Minchin succeeded in getting a motion passed in the Senate yesterday demanding details of all communications between the NBN Co’s Kaiser and the Minister’s office, the Treasurer’ office, the Prime Minister and his staff.

Special Minister of State Joe Ludwig tabled a document this afternoon declaring Kaiser's salary – including superannuation – was $450,000, but said the decision was the NBN Co’s and had been reviewed by the Chair of the company’s People and Performance Committee.

The statement said Kaiser's salary arrangements were not discussed with anyone from Government at any time.

Senator Ludwig is acting on behalf of Communications Minister Stephen Conroy, who is this week in Egypt at a United Nations conference on internet governance.

"As is common industry practice, senior roles at NBN Co have been sourced through searches conducted by recruitment firms and the NBN Co," the Government statement to the Senate read.

"As is normal and appropriate, the Government was aware of the appointment prior to its announcement. The Government is confident all of these communications were entirely appropriate and proper."

"The decision to appoint Mr Kaiser as Principal – Government Relations and External Affairs was an independent decision taken by NBN, not by the Government."

Senator Minchin has complained vociferously about the Kaiser's appointment, and that of former Conroy staffer Jody Fassina to the board of the Tasmania NBN Co two months ago.

"These blatantly provocative appointments demonstrate that the Rudd Government has no qualms about using its ill-conceived $43 billion NBN project as a vehicle to reward Labor mates at the expense of taxpayers," Senator Minchin said earlier this week.

A Government spokesman backgrounding on the Kaiser issue said during the previous Government, former Ministerial staffer David Quilty had been hired by Telstra for an estimated salary of $500,000 at a time when the Government owned 51 per cent of the company and Nick Minchin was Finance Minister.

The Government statement said the Kaiser salary "is consistent with the NBN Co's remuneration approach and the relativity of different roles at NBN and market benchmarking."

"NBN Co advise that the salary is consistent with equivalent jobs in other companies," it said.