What the nation s newspapers say today, Wed, Aug 18, 1999

AAP General News (Australia)
08-18-1999
What the nation s newspapers say today, Wed, Aug 18, 1999

SYDNEY, Aug 18 AAP - Last week's ruling by the Federal court paving the way for a class
action against tobacco companies is the strongest sign yet that Australian cigarette-makers
could be held accountable for the damage their products cause, says the Canberra Times in its
editorial today.

Their traditional defence - that there was no proof that smoking is harmful - had been
beaten by by evidence of a conspiracy by the companies in the US to hide the truth. They had
known for a long time that nicotine is addictive.

"It is perhaps fitting that in the end it may be the former customers, not government
regulators, who force the cigarette manufacturers to their knees," said The times editorial.

The Sydney Morning Herald says today that Senator Meg Lees' "new era" census based politics
involves the Democrats as players, rather than obstructionists.

This is not a total break with the past, as when Ms Cheryl Kernot was president the party
had co-operated with the first Howard Government to pass a tough series of changes to
industrial laws.

"If the Lees doctrine can be made to work, the major parties will have to review their
Senate tactics with a view to being less obstructionist. This should have the salutary effect
of allowing the Senate to be a true House of Review," said The Herald.

The Australian says today that governments embracing the culture of business has usually
paid financial dividends to taxpayers.

But the increasing use of contracts with the private sector as an excuse for secrecy is
unacceptable.

"This growing tendency for governments to avoid accountability is a national phenomenon,"
it warned.

Clearly, government support was flagging for freedom of information laws.

"What remains not in the public interest is for voters to be denied critical information
about services provided by the private sector. The lessons of WA Inc must not be forgotten."

The Australian said it might also surprise many Australians to learn that 25 per cent of
New Zealanders felt their country could be better-run by a board of directors than an elected
government.

Yet the rise of One nation here was a reminder that people responded to the perception of
strong leadership rather than remain supporters of traditional parties.

Ultimately, it was up to politicians to perform - and to be seen to be performing - with
the public interest uppermost in their minds.

"Anything less corrupts democracy," said the national daily.

The Brisbane Courier-Mail editorial today says One Nation Parliamentary leader Bill Feldman
had disgracefully used parliamentary privilege during a condolence speech on the death of
former MP Charles Rappolt to attack The Courier-Mail and some of its staff.

The editorial said Mr Feldman used the speech to advance One nation's hysterical claims of
a conspiracy by the media in general and The Courier-Mail in particular against Mr Rappolt.

It said One Nation and its supporters have responded to exposure of their shortcomings by
defaming journalists, who traditionally do not resort to the courts to obtain financial
compensation.

"It would be a different matter if Mr Feldman were to make his latest allegations without
the protection of parliamentary privilege. His incredibly cowardly attack could then be shown
to be based on lies spread by him and the One Nation party," The Courier-Mail said.

The Daily Telegraph says today that the Federal Government's agreement to release funds to
pay the $6.3 million owed 125 Oakdale colliery workers is the right decision.

They had done their best to buttress the now-closed colliery - accepting reduced pay and
increasing productivity.

In turn they had lost their both their jobs and the accrued benefits on which PAYE workers
relied - holiday, long service leave and sick pay, and the severance benefits which would tide
their families over between one job and the next.

The Australian Financial Review says in an editorial that if there is one unifying theme in
the $743 million loss announced by GIO Australia it is that there is not much joy for any of
the key players in what is likely to become a case study in corporate natural disaster.

"The uncertainty about where the blame will finally fall makes some advice from the German
writer Bertold Brecht particularly apt: "When the praying does no good, insurance does help,"
it said.

"Ultimately there is no alternative but for small investors to be wary of companies in
risky industries that are the subject of bitter valuation differences. But what happened with
GIO also raises serious questions about the professional responsibility of directors and
advisers," The Financial Review said.

Also editorialising on the GIO, The Age says the massive $740 million loss must be fully
investigated after the claim last year the GIO would make a healthy profit as it fought off
AMP's takeover bid.

In December last year when AMP was making its bid for the insurance company GIO predicted
it would earn $250 million in 1998-99.

"Claims crystallise slowly in the global reinsurance market, and a reinsurer's final
exposure is known only when claims against front-line insurers are tallied," it said.

"But even so, GIO shareholders, and investors generally, are entitled to ask how the
situation could have turned so suddenly for the worse.

"The top corporate regulator, the Australian Securities and Investments Commission should
undertake an inquiry with the aim of assuring investors that the information they received
less than a year ago was as good as they were entitled to get at the time," The Age said.

The Herald Sun says today that plans for Internet casinos in Australia must be rejected.

There were already sufficient opportunities to gamble in Australia without the introduction
of Internet casinos.

Plans by Tattersall's, Tabcorp and Crown to seek Internet gaming licences from the
Victorian Casino and Gaming Authority must be rejected.

"The Herald Sun does not oppose gambling, but we believe the avenues already available -
including horse racing, lotteries and casinos - are adequate," it said.

"Losing the family home while glued to the Internet in the living room does nothing for
anyone.

"The argument that we must do it because others are already doing it makes no sense at all.

"The social costs would be too high."

AAP cjh

KEYWORD: EDITORIALS

1999 AAP Information Services Pty Limited (AAP) or its Licensors.