TAS: Tasmanian Labor senator might quit party

AAP General News (Australia)
12-15-1998
TAS: Tasmanian Labor senator might quit party

By Don Woolford

HOBART, Dec 15 AAP - Tasmanian Labor Senator Shayne Murphy is considering quitting the
party and sitting as an independent after a row with Premier Jim Bacon over the Trust Bank,
the state's main financial institution.

His wife Jacquie has already resigned as state president of the ALP in a row that has
caught up Federal Opposition Leader Kim Beazley.

Senator Murphy said today he was "considering his position", but would definitely not quit
the Senate.

Asked if that meant he might stay as an independent, he replied: "I didn't say that...you
can draw whatever inferences you like."

Mrs Murphy confirmed today she had both quit as president and resigned from the ALP in a
letter to state secretary David Price that accused Mr Bacon of making a "traitorous" attack on
her husband.

"It's been a hurtful time and I don't want to comment any more," said Mrs Murphy, who works
in her husband's electorate office in Launceston.

The row surfaced last week when Senator Murphy attacked Trust Bank managing director Paul
Kemp in the Senate, saying he was "very suspect, I think he is a crook".

Mr Bacon promptly branded Senator Murphy's remarks as "disgraceful". The premier also
attacked Tasmanian Liberal Senator John Watson, who'd questioned the bank's financial
management.

The criticisms of the bank came at a delicate time as it searches for a strategic partner
ahead of a planned float.

Mr Bacon today made it clear he was mainly motivated by his desire to protect the bank's
reputation in the market place.

He said the attacks had a most unfortunate potential to damage the bank, which was "very
healthy and strong".,

"Tasmanians should be interested in making sure the best possible value is seen in the
Trust Bank rather than comments that might lead some to think the value is not there," he
said.

He also rejected Mrs Murphy's charge.

"It's highly ironic, coming from that quarter, that someone else could be accused of
treachery," he said.

In her letter, Mrs Murphy also accused Mr Bacon of phoning Mr Beazley and asking him to
discipline her husband.

However, Mr Bacon and a spokesman for Mr Beazley said that while there had been a phone
conversation between the two offices, there'd been no request for disciplining.

Mr Beazley's spokesman said the conversation was more about forest policy, over which
Senator Murphy and the state government are also at odds, than the bank.

The spokesman said Senator Murphy had shown Mr Beazley documents he'd tabled in the Senate
to support his charges against Mr Kemp and no further action was taken.

Senator Murphy, who was first elected in 1993, is a former timber union state secretary.

He has been been a strong critic of the Regional Forest Agreement between the federal and
Tasmanian governments, arguing that smaller operators don't get a fair go and there's
insufficient downstream processing.

AAP dw/it/de

KEYWORD: MURPHY

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