page_title: Joh Bjelke-Petersen
section_title: Conflict of interest, party revolt
hierarchical_section_title: Joh Bjelke-Petersen / Rise to power, 1952–1970 / Conflict of interest, party revolt
caption_attribution_description: English: Australian politician Joh Bjelke-PeterseN
context_page_description: Sir Johannes Bjelke-Petersen KCMG was an Australian conservative politician. He was the longest-serving and longest-lived Premier of Queensland, holding office from 1968 to 1987, during which time the state underwent considerable economic development. He has become one of the most well-known and controversial figures of 20th-century Australian politics because of his uncompromising conservatism, political longevity, and the institutional corruption that became synonymous with his later leadership.
  Bjelke-Petersen's Country Party controlled Queensland despite consistently receiving the smallest number of votes out of the state's leading three parties, achieving the result through a notorious system of electoral malapportionment that resulted in rural votes having a greater value than those cast in city electorates. The effect earned Bjelke-Petersen the nickname of "the Hillbilly Dictator". Yet he was a highly popular figure among conservative voters and over the course of his 19 years as premier he tripled the number of people who voted for his party and doubled the party's percentage vote.
context_section_description: Within months of becoming premier, Bjelke-Petersen encountered his first controversy over allegations of conflict of interest. In April 1959, while still a backbencher, he had paid £2 for an Authority to Prospect, giving him the right to search for oil over 150,000 km² near Hughenden in far north Queensland. The next month he incorporated a company, Artesian Basin Oil Co. Pty Ltd, of which he was sole director and shareholder, and the same day entered an agreement to sell 51% of the company's shares to an American company for £12,650. The following day he sought the consent of Mines Minister Ernie Evans to transfer the oil search authority to Artesian for £2; the consent was given a week later.
  When the Taxation Commissioner ruled that the £12,650 windfall from the £2 authority was a taxable profit, Bjelke-Petersen appealed, eventually taking the matter to the High Court. The appeal was dismissed, with Justice Taylor ruling that Bjelke-Petersen's six million percent gain from the £2 authority arose from "a profit-making undertaking". In 1962 Artesian transferred its Authority to Prospect to a new company, Exoil NL, for £190,000, and Bjelke-Petersen in turn bought a million shares in Exoil.
  On 1 September 1968, three weeks after becoming premier, Bjelke-Petersen's government gave two companies, Exoil NL and Transoil NL—in both of which he was a major shareholder—six-year leases to prospect for oil on the Great Barrier Reef north of Cooktown. Opposition Leader Jack Houston revealed the Premier's financial involvement in the companies at a press conference in March 1969, where he asserted Bjelke-Petersen had gained "fabulous wealth" from the £2 prospecting authority, which had now mushroomed into Exoil shares worth AU$720,000. Bjelke-Petersen said he had done nothing wrong, but resigned his directorship of Artesian in favour of his wife.
  The Country-Liberal coalition was returned to power at the 1969 Queensland election, with the state's system of electoral malapportionment delivering the Country Party 26 seats—a third of the parliament's 78 seats—from 21.1% of the primary vote, the Liberals taking 19 seats from 23.7% of the vote and the Labor Party's 45.1% share of the vote leaving it with 31 seats.
  Further controversy followed. In June 1970 it was revealed that a number of Queensland government ministers and senior public servants, as well as Florence Bjelke-Petersen, had bought shares in the public float of Comalco, a mining company that had direct dealings with the government and senior ministers. The shares finished their first day of trading at double the price the ministers had paid. Bjelke-Petersen again rejected claims of a conflict of interest, but the Country Party state branch changed its policy to forbid the acceptance of preferential share offers by ministers or members of parliament.
  In October, the Country Party lost a by-election in the Gold Coast seat of Albert, prompting several nervous MPs to make plans to oust Bjelke-Petersen as leader and replace him with Ron Camm. Bjelke-Petersen spent the night and the next morning calling MPs to bolster support, surviving a party room vote by a margin of one, after producing a proxy vote of an MP who was overseas and uncontactable. Plans by Country Party members to support a Labor Party vote of no confidence in parliament were quashed after the intervention of party president Robert Sparkes, who warned that anyone who voted against Bjelke-Petersen would lose their status as the party's candidate at the next election.
caption: Bjelke-Petersen in 1968
exif: {"Image ImageWidth": "4556", "Image ImageLength": "5931", "Image BitsPerSample": "[16, 16, 16]", "Image Compression": "Uncompressed", "Image PhotometricInterpretation": "2", "Image Orientation": "Horizontal (normal)", "Image SamplesPerPixel": "3", "Image XResolution": "2000", "Image YResolution": "2000", "Image ResolutionUnit": "Pixels/Inch", "Image Software": "Adobe Photoshop CS5.1 Macintosh", "Image DateTime": "2012:11:15 12:39:22", "Image ExifOffset": "244", "Thumbnail Compression": "JPEG (old-style)", "Thumbnail XResolution": "72", "Thumbnail YResolution": "72", "Thumbnail ResolutionUnit": "Pixels/Inch", "Thumbnail JPEGInterchangeFormat": "382", "Thumbnail JPEGInterchangeFormatLength": "6246", "EXIF ColorSpace": "sRGB", "EXIF ExifImageWidth": "564", "EXIF ExifImageLength": "700"}