A successful career in politics, just like in business, can depend on being in the right place at the right time.
A successful career in politics, just like in business, can depend on being in the right place at the right time.
This maxim is borne out by a look at state and federal politicians who have become company directors after retiring from politics.
The review also found that political allegiances don’t count for much, with Labor politicians just as likely as their conservative counterparts to take board positions.
The latest politicians to enter public company life are former National Party minister Monty House, who is chairing diamond float Gemstar Diamonds, and former Labor minister Julian Grill, who is chairing gold float Regal Resources.
Their former leaders, Peter Dowding (Labor) and Richard Court (Liberal/Coalition), are among the many other politicians to have become directors of public companies.
Another former premier, Labor’s Brian Burke, has also become closely involved in the business community as a manager, lobbyist and investor, but he has avoided the glare of taking public board positions.
Bill Hassell, opposition leader during the Burke government’s 1980s reign, has one of the most interesting track records in business.
After a stint as Western Australia’s Agent General in Britain in the mid 1990s, Mr Hassell returned to Perth to take several board positions, including chairman of Acclaim Uranium.
During Mr Hassell’s stint as chairman, Acclaim bought the Langer Heinrich uranium deposit in Namibia, and spent most of 2000 and 2001 conducting feasibility studies on the project.
Unfortunately, after spending $2.2 million, the uranium price collapsed, forcing Acclaim to write off its investment and sell the project to a little-known company called Paladin Resources for just $15,000.
Astute investors will know that the uranium price is now at record highs, Paladin is about to develop Langer Heinrich and its share price has gone from just a few cents in early 2003 to about $1 currently.
“Like so many things, it’s a question of timing,” says a philosophical Mr Hassell about his experience with Acclaim.
Patient shareholders in Acclaim, which has morphed into aspiring iron ore miner Aztec Resources, could still gain from the booming uranium market, courtesy of a sales royalty that was part of the sale to Paladin.
Mr Hassell’s other board positions include Hire Intelligence International and Antares Energy.
A common link at both companies is Richard Elliott, who had a successful career as a geologist but is best known in WA as a political adviser to Richard Court.
Mr Elliott’s other board positions have included Arc Energy, which also seems to have predilection for directors with political connections.
Arc’s chairman until March was Peter Jones, who was a senior minister in Sir Charles Court’s government.
Mr Jones has been on numerous boards, including privately-owned Kailis Organic Olive Groves, Bains Harding, St Barbara Mines and the Water Corporation.
He is currently winding down his public company roles, having retired as chairman of both Arc and listed mineral testing consultancy AMMTEC this year.
As one generation retires, others step in to take their place, creating some unusual associations.
A case in point is Messrs House and Grill, whose companies share the same registered office in Hay St, West Perth.
Mr House assured WA Business News the sharing of premises was pure coincidence.
While state politicians are most prominent in WA business, a few Perth companies have lured former federal politicians onto their boards.
These include former industry minister John Button, who had the misfortune to chair luxury boat builder Oceanfast when it failed in 1999, and former foreign minister Andrew Peacock, who was a director of Orbital in 2002.
