Push for probe hots up

Lyons corruption claims

CALLS for a commission of inquiry into corruption allegations relating to the collapse of the Bethune Liberal minority government in 1972 are growing stronger following new claims made public this week.

Tasmania Police is reviewing the 1973 police investigation into allegations then independent MP and deputy premier Kevin Lyons was bribed to resign by British Tobacco and given incentives by Federal Hotels.

Former bookmaker Greg Rider told ABC TV’s 7.30 program he was called to a meeting in the Northern Midlands town of Ross. He said head of the southern bookmakers association Frank Watt gave him a locked briefcase and asked him to deliver it to a house in Sandy Bay.

Mr Rider told 7.30 he couldn’t remember the address but it was in the area where Mr Lyons lived. It is understood Tasmania Police interviewed Mr Rider yesterday.

A police spokeswoman said the review of the case was “ongoing and it is inappropriate to comment further at this stage”.

The matter was brought to light again last year by Hobart author James Boyce in his book Losing Streak: How Tasmania was gamed by the gambling industry.

The allegations, dismissed by police at the time, were associated with the subsequent awarding of the monopoly casino licence to Federal Hotels — now Federal Group — by the returned Labor government led by Eric Reece.

Hugh Dell, a senior adviser to Mr Reece, was booted out of Labor, with two colleagues, after he blew the whistle on the Lyons bribery allegations. Mr Lyons died in 2000.

Deputy Premier Jeremy Rockliff yesterday said he did not believe a commission of inquiry should be held into political corruption in Tasmania.

When asked about the Lyons bribery allegations he said, “That’s history.”

Opposition Leader Rebecca White said if there was any evidence of corruption uncovered by police, Labor would support a commission of inquiry.

The Tasmanian Greens said an inquiry was needed whether or not police found evidence of corruption. Independent Denison MHR Andrew Wilkie said only a commission of inquiry would have the power to explore broader wrongdoing and give protection to the witnesses that are still alive.