O’Farrell loses staffer to Casino scandal fallout

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The New South Wales Premier Barry O’Farrell has accepted the resignation of his communications director, Peter Grimshaw. It’s the first casualty in the scandal over the Star Casino and allegations it tolerated a culture of sexual harassment.

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MARK COLVIN: The political scandal in New South Wales involving Sydney’s Star Casino has claimed its first victim.

The Premier’s director of communications Peter Grimshaw has handed his boss, Barry O’Farrell, his resignation.

Mr Grimshaw is a former spin doctor for the casino.

A public inquiry into the sacking of the Star’s US boss just a few weeks ago has laid bare the PR man’s private life.

Simon Santow reports.

SIMON SANTOW: For two days he’d given evidence before the Independent Liquor and Gaming Authority.

For a man who has made a career in attempting to control the message, there was very little for Peter Grimshaw to gain from this experience.

Barrister after barrister asked him to explain why and how he’d helped his partner as she took on The Star Casino and its American management in an ugly sexual harassment case.

PETER GRIMSHAW: I’ll do anything for my partner she’s the most wonderful person in the world and she’s been through a lot and I’ll look after wherever I can.

SIMON SANTOW: It turned out that ‘anything’ included discussing a plan to impersonate his partner’s ex-husband, texts talked up his relationship with the New South Wales Premier, Barry O’Farrell, and revealed he’d enlisted the support of the Premier to ‘smash’ the casino when he got into government.

The inquiry was told the Premier had vowed to give the casino a wakeup call.

After a torrid time giving evidence, Peter Grimshaw was asked outside the hearing if he still had a future as the Premier’s chief communications adviser.

JOURNALIST 1: Do you think you’ll get your job back?

PETER GRIMSHAW: Oh look that’s going to be a matter for the Premier to decide and I’m certainly in his hands.

JOURNALIST 2: Do you regret dragging the Premier into this?

PETER GRIMSHAW: I don’t think the Premier’s in this now. The Premier has (inaudible) and I’m sure that he’ll any questions in Parliament.

SIMON SANTOW: A few blocks away in Macquarie Street, the next chapter in the saga was unfolding.

SHELLY HANCOCK: will be determined later in the sitting, are there any questions? Leader of the Opposition?

JOHN ROBERTSON: Thank you Madame Speaker, my question without notice is to the Premier. Were you so upset and angry at The Star Casino for forcing out your long time friend and close confidant Peter Grimshaw that you wanted to quote, “smash The Star?”

SHELLY HANCOCK: Call the Premier?

BARRY O’FARRELL: I don’t recall any conversation I had with Mr Grimshaw about those matters and, as I said, Madame Speaker, and as I said Madame Speaker, I stand by my record in government.

SHELLY HANCOCK: Order.

BARRY O’FARRELL: But I should inform the House Madame Speaker that shortly before Question Time today I had a telephone conversation with Peter Grimshaw in which he offered his resignation, a resignation I accepted with regret, Madame Speaker.

SIMON SANTOW: For a fortnight, Barry O’Farrell had been sitting on a report from his top bureaucrat, which found that Peter Grimshaw had breached the Ministerial Staff Code of Conduct over the affair.

BARRY O’FARRELL: And that report said in part, quote, “That the breach of the code was unambiguous, material and serous”. You’ll recall that I also ask the director-general to provide me with advice as to what ramifications there should be, should a breach of the code be found, Madame Speaker.

And the director-general said, quote, in his view, “in my view,” he said, “the options available are either to terminate Mr Grimshaw’s employment or a first and final warning that a further breach will result in termination.

Now Madame Speaker but whilst I’m disappointed, I do appreciate that Mr Grimshaw has done the right thing.

PETER COLLINS: It is unfortunate that Peter Grimshaw has felt compelled to resign over what most people are going to see as a storm in a teacup. I mean really I think most people are going to be scratching their heads saying, why did he feel compelled to resign?

SIMON SANTOW: The former coalition Opposition leader and State Treasurer Peter Collins says it’s a big loss to the New South Wales Government.

PETER COLLINS: Peter Grimshaw has been an extremely valuable adviser to Barry O’Farrell, especially getting the ball rolling in what should be a very long premiership and a long and successful run in government.

SIMON SANTOW: Peter Collins says this government is determined to present a squeaky clean image.

PETER COLLINS: To put this in context, the alleged offences which I’ve got to say are at the parking ticket end of seriousness, the alleged offences occurred while Barry O’Farrell was Opposition leader.

I mean Peter Grimshaw wasn’t working for him then and this all pre-dates the O’Farrell Government. It’s got nothing to do with the O’Farrell Government. This is, as I understand it, an exchange of discussion and an exchange of SMSs which occurred while Barry O’Farrell was Opposition leader and Peter Grimshaw worked at the casino.

So I think most people are going to be saying what on earth is this about? And in a way it distracts from the main game. You’ve got a serious inquiry going on about Star Casino at the moment and I think that this is a massive distraction and a convenient distraction from that inquiry.

MARK COLVIN: Peter Collins, former New South Wales Treasurer and Opposition leader, now managing director of Barton Deakin Public Relations ending Simon Santow’s report.

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