No inquiry into abalone group
Pia Akerman
The Rann government (South Australia) has rejected calls for a parliamentary inquiry to investigate a collapsed aquaculture company and its dealings with government ministers and officials.
The state opposition called for a select committee to be established after The Australian revealed numerous contacts between ministers and Andrew Ferguson, chief executive of Australian Bight Abalone, which went into voluntary administration last month.
Mitch Williams, acting Liberal spokesman on fisheries, yesterday said the 1200 people who invested $43.8 million in the company deserved answers.
"It seems that to clear the air, we need some sort of inquiry," Mr Williams told The Australian. "There are a lot of unanswered questions.
"I think for the future of the aquaculture industry in South Australia, we need to clear the air," he said.
Industry insiders have raised specific concerns about the way ABA's aquaculture licences were approved for commercial production.
But Minister for Agriculture, Food and Fisheries Paul Caica dismissed the calls for a parliamentary inquiry, saying he saw no need to review decisions relating to the grant and conversion of ABA's leases.
"On the basis of the information I've been provided, I'm confident that the processes for the granting and conversion of leases and licences under the Aquaculture Act 2001 are rigorous and transparent," he said.
"I'm also confident that all transactions undertaken with respect to leases and licences held by Australian Bight Abalone have been in accordance with the act."
Mr Caica said he and each fisheries minister before him had only ever granted leases
on the advice of the Aquaculture Tenure Allocation Board.
Mr Caica is among a string of government figures, including Premier Mike Rann, Deputy Premier Kevin Foley, Infrastructure Minister Patrick Conlon and Planning Minister Paul Holloway, who met Mr Ferguson at official functions, government events and exclusive ALP fundraising events before ABA went into administration.
The political developments came as a confidential report by administrator McGrath Nicol, obtained by The Australian, revealed that whole clusters of the abalone spat seeded in 2007 died due to faulty nets, supplied by a company no longer in use.
The report, written to advise possible buyers, summarises a damning investigation completed by the South Australian Research and Development Institute in May this year.
Despite mortality rate targets of between 14 and 21 per cent in ABA's product disclosure statements to potential investors, SARDI found the mortality rates since 2005 were significantly higher.
Its report showed 84 per cent of the first abalone crop died in 2005, about 97 per cent in the second year, 93 per cent in 2007 and 62 per cent last year.
ABA director Nick Bolkus -- a former senator, lobbyist and fundraiser for the ALP -- has acknowledged the board's concern about the abalone dying off, but said it was never an issue "until the last few months".
A spokeswoman for the state Primary Industries and Resources Department -- which controls SARDI -- declined to comment on its report, saying it was a commercial, in-confidence report commissioned by ABA.
Liberals caught up in sinking of abalone group
Verity Edwards
The South Australian Liberal Party has become embroiled in the collapse of Australian Bight Abalone, after the local MP revealed her husband had been contracted to supply stock to the embattled aquaculture company.
Liz Penfold, who has held the state seat of Flinders since 1993, taking in ABA's base at Elliston, said yesterday that she had also met the company's chief executive several times and had supported its application to set up an offshore abalone farm.
"I met with Andrew Ferguson and said I would do all I could (to help) because we needed the jobs very badly, and the business was badly needed for Elliston," Ms Penfold told The Australian. "I went to one of their initial functions in Adelaide to show support ... Since then I haven't been to anything, haven't been invited to anything."
Geoff Penfold, a former accountant, now manages Port Lincoln-based onshore abalone growing company Southern Australian Seafoods, which has had contracts to supply ABA.
Ms Penfold, a shareholder in SAS, said the company had been contracted to supply $200,000 worth of stock to ABA but had not yet handed it over.
Yesterday she admitted to initially having concerns about ABA's plans to farm abalone offshore, including its funds being sourced through a managed investment scheme, and the viability of growing abalone in rough open seas.
Opponents to the company setting up at Elliston were concerned about the impact of any breakdown in equipment on the environment, how it would affect the nearby Australian sea lion colony and whether it would impede the migratory path of whales.
"When Australian Bight Abalone came along and proposed to do in-sea abalone, while it's rough out there I certainly didn't have any concerns about the sea lions or the whales," Ms Penfold said. "(But) we were all hopeful that the technology was there and we would see a successful in-sea aquaculture industry."
ABA went into voluntary administration last month and sacked 27 staff, leaving 1200 people who invested a total $43.8 million in limbo.
The Australian last week revealed the company's extensive contact with the Labor Party, thrusting the South Australian government into the debate over the growing influence of lobbyists and cash for access to premiers and ministers.
ALP fundraiser and lobbyist Nick Bolkus is a director of ABA, and Premier Mike Rann was a one-time guest speaker at an ABA function. Mr Ferguson has also met several senior state ministers.
ABA is continuing to operate its aquaculture leases and licences.
A Primary Industries and Resources SA spokesman said yesterday that the administrators were hoping to sell the operations to keep the company running.
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