Senator O'BRIEN (2:07 PM) —My question is to the Assistant Treasurer, Senator Kemp, and it follows my question to him yesterday about the conditions placed on the sale last year of the 50 per cent of Ansett held by News Ltd to Air New Zealand. Is the minister aware of a statement from an Ansett manager, Ms Sandy Brookes, that she was required by Air New Zealand to regularly transfer Ansett funds to Air New Zealand? Is he also aware of comments by the Ansett administrator, Mr Mentha, that sweeping Ansett accounts in this way demonstrated the entanglement of affairs of the two airlines? Given that I raised this matter yesterday, has the minister sought advice as to the government's knowledge of Air New Zealand's control of the management of Ansett putting that airline—Air New Zealand—in breach of a key condition imposed on the company by the Treasurer and the Minister for Transport and Regional Services?

Senator KEMP (Assistant Treasurer) —I think Senator O'Brien's question is a little bit wider than the issue he has raised in the last couple of days. On the issues Senator O'Brien mentioned about the transfer of funds and the activities of management, ASIC has commenced a formal investigation into the collapse of Ansett. I am advised that the replacement of the Ansett administrator does not disrupt ASIC's investigations, and ASIC will work with the new administrator in the same way it worked with the previous one. The focus of the ASIC investigation will be on possible breaches of directors' duties under the Corporations Act and on compliance with the insolvency trading provisions of the act. Also, my advice is that ASIC has written to the New Zealand securities commission requesting that it conduct inquiries into the adequacy—and I think this goes to one of the points that you raised—of financial disclosures made by Air New Zealand. The matters touched on by Senator O'Brien deal with a much wider issue than is involved with the conduct of the management of Ansett. As I have mentioned to him, these matters are under investigation by the relevant authority, and it would not be appropriate for me to comment further on this.

The only other aspect of this I raise is that all of us would have wanted Ansett to continue. Ansett has a great history, and the failure of this company is one which has quite rightly caused massive concern amongst Australians—and I think we all feel very greatly for the 16,000 employees who are involved. While we would have preferred all of the conditions that were specified were met, the fact is that, once a company collapses, to our great regret, that does not appear to be able to happen. We recognise that and I think it is time the Labor Party recognised that, and I call on them to adopt a constructive approach to this serious problem.

Senator Robert Ray —You could get rid of Charles Goode straightaway!

Senator KEMP —Captain Nemo calls out his usual, entirely unhelpful comment. I was going to conclude my answer, but seeing that Captain Nemo has decided to get himself into the conversation—

The PRESIDENT —Senator Kemp, you should ignore interjections.

Senator KEMP —One of the criticisms of the Labor Party at the moment is that they have no policies and no fixed position. The hardest question that could be asked in this parliament is: what does the Labor Party stand for? The only thing I can see the Labor Party standing for is getting trade union bosses jobs in parliament.

Honourable senators interjecting—

The PRESIDENT —Order! Senator Kemp, Senator O'Brien is attempting to ask you a supplementary question. Senators on both sides will come to order so that question time can proceed.

Senator O'BRIEN —Madam President, I ask a supplementary question. Given that the minister has made himself somewhat familiar with this issue, do I take it from his answer that ASIC is investigating what the government knew of Air New Zealand's flouting of the key conditions, or did he make himself familiar with the question of whether or not the government had any knowledge of Air New Zealand's breach of the key condition imposed? If, indeed, he has not sought that advice, can he undertake to the Senate to do so and to advise the Senate before close of business today?

Senator KEMP (Assistant Treasurer) —It is always a pity when a senator stands up but then fails to listen to the answer that is given. I sometimes wonder what the point is of standing up here and answering questions when no-one listens. The Labor senator has a supplementary question written down and he reads it, so whatever you have said is completely disregarded. I have mentioned to you, Senator O'Brien, the ASIC investigation and I do not plan to add anything further to that.