Premier faces 11th-hour inquiry

Sean Nicholls and Brian Robins January 4, 2011

AN INQUIRY into the government's $5.3 billion power sale is to be held only weeks before the state election after its chairman, Fred Nile, said fresh legal advice did not affect its plans and the President of the Legislative Council, Amanda Fazio, revealed that her ''inclination'' was not to intervene.
The Premier, Kristina Keneally, yesterday released new legal advice from the Crown Solicitor, Ian Knight.
She had previously relied on advice he gave in 1994 to claim the inquiry would be illegal because it would be set up after she shut down Parliament on December 22.
In the new advice, Mr Knight said his view remained that the parliamentary committee that plans to run the inquiry on January 17 and 18 ''cannot function'' while Parliament is prorogued.
However, in contrast to Ms Keneally's statements that it could not afford witnesses the protection of parliamentary privilege, he advised that there was only a ''risk'' that that would be the case.
Ms Keneally said she would distribute the advice to Ms Fazio, Mr Nile and the clerk of the Parliament, Lynn Lovelock, ''to digest it and consider what the next steps are''.
But Ms Fazio, who as President could stymie the inquiry by withholding resources, told the Herald she was prepared to let it proceed, given the conflicting advice between Mr Knight and Ms Lovelock, who has advised Mr Nile that the inquiry can proceed. ''My inclination is not to withhold the resources of the Parliament from the committee,'' she said.
''Both sets of advice are saying there is no privilege. I'd be prepared to allow it to proceed as long as witnesses are appearing in a voluntary capacity, knowing they are without privilege.''
They are likely to include eight power company directors who resigned in protest on the night of the sale.
But Mr Nile said Mr Knight's advice about privilege was in line with a standard warning issued to witnesses before every inquiry.
Ms Fazio said Ms Lovelock was ''preparing more detailed advice''. She hoped to have her response by the time she returned to work next week.
The Opposition Leader, Barry O'Farrell, said the government should seek an order from the Supreme Court about the legitimacy of the inquiry but Ms Keneally's spokeswoman said Mr Knight's advice questioned whether the court would hear the application.
The Greens MP David Shoebridge said Mr O'Farrell was trying to ''pass the buck'' to the courts and argued that the inquiry should proceed.
http://www.smh.com.au/national/premier-faces-11thhour-inquiry-20110103-19dwh.html