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FAIRFAX was motivated by “payback†in running a story about Treasurer Joe Hockey’s connection with a Liberal fund raising body after it was forced to apologise to Mr Hockey, following a story in March, the Federal Court has been told.
The Treasurer is suing for defamation Fairfax publications The Sydney Moring Herald, The Age and The Canberra Times over a story the papers ran about Mr Hockey’s connections to Liberal fund raising body the North Sydney Forum.
The Sydney Morning Herald put on the story the headline “Treasurer For Saleâ€, reportedly written by SMH editor Darren Goodsir.
Mr Hockey’s barrister Bruce McClintock SC told the federal court Mr Goodsir was “very upset†over previously being forced to run an apology to the Treasurer, following an incorrect report that claimed he had to pay back money to Australian Water Holdings. AWH was being examined by the NSW Independent Commission Against Corruption and was connected to corrupt former NSW Labor MP Eddie Obeid’s family.
“There was a big measure of payback because the Herald had been forced to apologise to Mr Hockey,†Mr McClintock said.
Mr McClintock said he found it “surprising†that Mr Goodsir had not thought there were imputations of “corruption†in the story.
Acting for Fairfax, barrister Sandy Dawson said that “nobody wanted to convey bribery and corruption†allegations against the Treasurer, but the story was factually correct and contained “important policy considerations.â€
The stories, published on May 5, claimed the Treasurer was offering privileged access to businessmen and lobbyists in return for donations.
Published with the headline “Treasurer for saleâ€, the articles claimed the North Sydney Forum charged annual membership fees of up to $22,000 for perks including “VIP†meetings with Mr Hockey.
The stories also alleged the North Sydney Forum did not fully disclose its activities to election funding authorities.
Court documents filed by Mr Hockey say the stories falsely implied he accepted bribes to influence his decisions, corruptly sold privileged access to businessmen and lobbyists, and knowingly permitted a Liberal fundraising forum with which he was associated to accept money from the “corrupt Obeid familyâ€.
Mr Hockey is claiming aggravated damages against Fairfax, arguing the media organisation knew the claims were false when it published them.