Business rises in power balance shift

WHEN Business News assembled its 2023 list of Western Australia’s 50 most influential figures, there was an almost even split at the centre of power between those in business and politics.

Central to it all was Mark McGowan, then premier and treasurer, and the key figure around which the orbs of power gravitated.

His inner-circle – chief of staff Daniel Pastorelli, deputy premier Roger Cook and senior cabinet minister Rita Saffioti – joined him as politicians inside the tent.

Business leaders of influence included Andrew and Nicola Forrest and Kerry Stokes, with Woodside’s Meg O'Neill, Wesfarmers’ Rob Scott and Gina Rinehart also closing in on the centre.

Much has changed in the year since.

While still influential, Mr McGowan has relinquished his role as the holder of power in 2024.

“With an unprecedented parliamentary majority and every expectation of another win in two years’ time, Mr McGowan’s position looks near impregnable,” Business News wrote in 2023.

Remarkably, a year later, the former Navy man turned long-serving politician finds himself in unfamiliar waters, shifting from the political to the business side of influence for the first time.

In his place is replacement Roger Cook who, though not as prominent as his predecessor, has carried on the job with the energy he promised when assuming the role.

The same feature last year pondered Mr Cook’s ability to hold on as deputy of the party, against the pressure applied by politically rising Health Minister Amber-Jade Sanderson.

It was almost prophetic.

When WA Labor’s United Workers Union faction – of which both Mr Cook and Ms Sanderson are members – gathered to vote on their preference for a McGowan successor, the latter came out on top.

A unity ticket of Mr Cook and the non-factional Ms Saffioti ultimately proved the trump card, winning over the party’s right faction.

Ms Saffioti’s support made Mr Cook the man with the most influence in the state.

Mr Cook is not treasurer, and his ability to hold the line in the wake of pressure from lobbyists and advocacy has been tested early in his tenure: first in the saga around the Aboriginal Cultural Heritage Act, and later in the ongoing conversation around domestic gas policy.

Ms Saffioti’s rise has ensured a position of greater influence within the central circle of power, with formidable sway as both treasurer and transport minister responsible for the delivery of the multi-billiondollar Metronet project.

Mr Pastorelli continues to be the government’s highest-profile staffer, but his position in the Cook office does not afford him the same influence as he once had in the all-conquering McGowan government, where he served as a trusted lieutenant for many years.

Ms Sanderson’s role as health minister provides her with substantial influence, but the public nature of the leadership tussle has left some scars.

She could very well rise, in time, as could Housing and Planning Minister John Carey and Energy and Environment Minister Reece Whitby. The latter’s work in these portfolios following Bill Johnston’s departure from cabinet will make for interesting watching.

While Mr Johnston, Commerce Minister Sue Ellery and Attorney-General John Quigley remain influential, all are headed for an exit at next year’s election.

As a result, Mr Cook and Ms Saffioti are the only two representatives of government at the core of the 2024 most influential table.

Business has risen to fill the void.

Weight of billions

Three billionaires have retained or grown the scope of their influence during the past year.

Both Gina Rinehart and Andrew Forrest have embarked on journeys of what could be considered investment protectionism: putting their substantial fortunes to use to snap up businesses of national cultural significance.

The purchase by Tattarang – owned by Andrew and Nicola Forrest – of hatmaker Akubra in November 2023 followed its pick-up of boot manufacturer RM Williams in 2020.

Mrs Rinehart’s pastoral company, S Kidman & Co, bought century-old oilskin coat business Driza-Bone in December.

Neither purchase gives claim to influence as such, but both reflect the financial clout at the disposal of the state’s wealthiest people.

The protectionist investment approach of Mrs Rinehart was on show in the resources sector.

Hancock Prospecting’s move to acquire a blocking stake in Liontown Resources over the second half of 2023, which resulted in the decision by US chemicals giant Albemarle to walk away from a $6 billion takeover of the lithium developer in October, was evidence of this.

Liontown’s fortunes have drifted with the battery metal’s price since.

Through Hancock, Mrs Rinehart also emerged as a force in SQM amid its move for Mark Creasy-backed Azure Minerals, eventually partnering with the Chilean lithium supplier to buy the company – and its 60 per cent stake in the Andover lithium project – for $1.7 billion.

Another figure active in lithium was Chris Ellison, whose company, Mineral Resources, amassed stakes in both Azure and Liontown and acquired Delta Lithium with Hancock as a major shareholder towards the end of the year.

Many of MinRes’s lithium moves have played out in the orbit of Hancock.

But it’s on the gas side of the equation that Mr Ellison’s influence is clearest.

With Mr McGowan as a strategic adviser, Mr Ellison is a leading voice in the ongoing debate around domestic gas policy, calling for an export exemption that would apply to production from MinRes’s yet-tobe-developed Lockyer natural gas project in the Perth Basin.

An exemption of this kind would go against current policy, but the rhetoric of both Mr Cook and Mr Ellison suggests a change could soon be made to allow it.

Mr Ellison’s influence continues to expand as his wealth grows.

Alongside Mr Forrest and Mrs Rinehart is Kerry Stokes, whose influence reflects extensive commercial interests – including in the Perth Basin – as well as a media empire that can provide access across government.

The head of Wesfarmers, Rob Scott, and Woodside Energy boss Meg O'Neill continue to show their influence with the support of those on a state and federal level.

Against a chorus of opposition from environmentalists, Ms O'Neill’s Woodside has won support from all levels of government for its multibillion-dollar Scarborough gas project off the WA coast.

The potential for the company she leads to provide a power baseload as the state shifts away from coal-fired electricity generation by 2030 places Ms O'Neill in a central position of influence.

However, neither Ms O'Neill nor the industry in which she operates are likely to receive any support from Mr Forrest, as the Fortescue founder continues his efforts to build a greener future away from fossil fuels.

Last year, Mr Forrest and wife, Nicola, appeared as a dual entry at the centre of power in WA. Their personal split has resulted in two entries within the top 50, with both holding substantial fortunes and both considered to wield great influence in their own right.

The Forrests are still both involved in Tattarang, with interests across a range of commercial areas.

They also remain jointly engaged in their prolific philanthropic arm, the Minderoo Foundation, while Business News revealed Ms Forrest had set up her own foundation – Coaxial Foundation – earlier this year.

John Hartman-led Minderoo increased its spending by 65 per cent last financial year, to $224.9 million.

As a result of a slightly less public-facing profile, Ms Forrest sits on the periphery of central influence, with a case to shift closer to the middle in the year to come.

Business builds

Familiar names and a few new faces make up the business side of the list.

Matt Reed, who only joined Alcoa’s Australian arm this time last year, was promoted to be to the US-based company’s global chief operations officer in December, at a time of significant engagement with the WA government.

The company’s decision to close the Kwinana refinery, its ongoing conversations around the environmental aspects of mining in the Darling Range, and its move to acquire Australian JV partner Alumina, place Mr Reed at the forefront of business movers in the state.

Under managing director Dale Alcock, the resurgent ABN Group navigated the building industry’s tumultuous times to bounce back from its first loss and into profit in FY23.

As head of WA’s largest builder, Mr Alcock is well positioned on this year’s list; as is Nigel Satterley, who heads his eponymous land developer (the largest of its kind in a sprawl-happy state).

Adrian Fini and Ben Lisle are also on the list, as the influential co-founders of property developer Hesperia, which has a large and diverse project portfolio including government initiatives.

In resources, Tim Day has come onboard in place of Brandon Craig at BHP Iron Ore and Ryan Stokes has weighed in on the state’s energy debate as interim chair of Beach Energy: part of his family’s wide-ranging business interests.

Mr Stokes was among those invited by the premier to participate in a panel discussion at the WA Energy Transition Summit late last year.

Rio Tinto’s Simon Trott also ranks highly as the head of the mining giant’s WA iron ore operations and an advocate for industry on impactful policy settings.

Ministerial moves

Just eight of the 17 ministers sworn in as part of Mr McGowan’s inaugural cabinet in 2017 remain in ministerial positions as of March 2024.

With Sue Ellery and John Quigley retiring at the 2025 election, the number will reduce further to six.

The turnover creates opportunities for a new generation of politicians in the state.

Planning, Lands and Housing Minister John Carey has long been seen as a next-generation leader within the party, as has Ms Sanderson, despite the leadership posturing that took place following Mr McGowan’s departure.

Energy, Environment and Climate Action Minister Reece Whitby is a rising presence on the influential list, while senior ministers Paul Papalia and Stephen Dawson retain their places.

Opposition

Opposition leader and WA Nationals figurehead Shane Love is absent from the most influential list in 2024, as his party stares down the barrel of electoral reform expected to challenge the party’s influence from 2025.

Liberal Party of WA leader Libby Mettam maintains influence, though recent events have cast doubt over the unity of the party room.

City of Perth Lord Mayor and WA Liberal Churchlands candidate Basil Zempilas looms as a compelling leadership option post-2025, with his popularity bolstered by the support of his long-term employer Seven West Media and his current high-profile position.

The party’s movement in the lead up to the 2025 ballot will make for interesting viewing.

A passing thought

Lastly, the political influence of the disgraced former premier turned former lobbyist Brian Burke makes an intriguing point of conversation, but little more than that.

While the long shadow of Mr Burke continues to cause turmoil for those in politics and business willing to engage with him, any claim to a place on the influential list is diminished by the long-standing red line through his name by the majority of those in positions of power.