Robert Fordham
Encyclopedia
Robert Clive Fordham is an Australian former politician, who was a member of the Victorian Legislative Assembly
representing the state seat of Footscray
for the Australian Labor Party
from 1970 to 1992. He was Deputy Premier of Victoria
in John Cain
's government from 1982 to 1989.
. He worked as an accountant, and joined the Commonwealth Public Service Board in 1968.
in the 1967 Victorian election, but was elected as member for Footscray
in the subsequent election in 1970. In that same year, he was made parliamentary spokesperson on fuel, power and the arts; later, for education and federal affairs. In 1977, he was made deputy leader of the Labor Party in Victoria and deputy opposition leader under Frank Wilkes
and John Cain
.
In the 1982 election, John Cain led Labor to victory after thirty years in opposition. Fordham became Deputy Premier
, and was also given the portfolios of education and educational services in Cain's cabinet. After the 1985 election, Fordham and Ian Cathie
swapped portfolios, with Fordham becoming Minister for Industry, Technology and Resources.
's Liberal government in 1981, but which was restructured by the Labor government in 1984 to provide loan and equity funds to certain companies stimulate economic activity in Victoria. In October 1987, the VEDC became involved in the proposed public float
of Wallace International, a pharmaceutical company. Despite a global stock market slump following "Black Monday
", Wallace proceeded with its float, which then failed, causing the float's underwriters to withdraw from their commitment. In early November 1987, Wallace applied to the VEDC to sub-underwrite the float, and received correspondence from Fordham agreeing to the VEDC to act as sub-underwriter, to make further loans to the company and to purchase $2 million worth of shares.
By the close of the float in January 1989, Wallace's failure to attract investors saw the company call up the VEDC's sub-underwriting agreement in February. The VEDC board met on 19 February, where they were informed of Fordham's agreement with the company for the first time, which it was required to endorse. Despite the funding injection from VEDC, Wallace recorded a loss of around $17.5 million, and in November 1988 the VEDC instituted legal action alleging misleading and deceptive conduct, and seeking the recovery of the $15 million it had invested.
The problems continued with several other VEDC clients going into receivership. The opposition seized upon the agency's failures, and called for Fordham's resignation and a royal commission into the affair. The government appointed accountant Fergus Ryan to conduct an inquiry into the VEDC's finances, management and investments. Ryan's report was released in 21 December 1988, finding that the VEDC had accumulated bad debt
s of $112 million. Fordham's appointments to the VEDC board were criticised, as were his agreements with Wallace which were seen to have caused the agency to have "entered into an agreement beyond its powers". An election had been held in October 1988 in which Cain's government had been re-elected, losing one lower house seat and control of the upper house. Cain re-shuffled his cabinet, moving Fordham to the Agriculture and Rural Affairs, and Arts portfolios.
Despite further opposition pressure over the VEDC affair, and speculation that Fordham would be forced to resign, Premier Cain backed his deputy, as did the Labor Unity faction of which Fordham was a member. During January, however, Fordham's support within the party dissipated. In particular, the Socialist Left faction had a cross-faction agreement to provide the next deputy premier, and worked actively to force Fordham to resign. He stood down on 31 January 1989, and a week later the caucus elected Joan Kirner
to replace him as Deputy Premier.
Fordham served out the rest of his parliamentary term on the backbench, and did not contest the 1992 election.
region, including as Chairperson of East Gippsland Water and a council member of East Gippsland Institute of TAFE
.
Victorian Legislative Assembly
The Victorian Legislative Assembly is the lower house of the Parliament of Victoria in Australia. Together with the Victorian Legislative Council, the upper house, it sits in Parliament House in the state capital, Melbourne.-History:...
representing the state seat of Footscray
Electoral district of Footscray
The Electoral district of Footscray is an electoral district of the Victorian Legislative Assembly. It lies just north of Melbourne and covers the suburbs of Footscray, Maribyrnong and Seddon....
for the Australian Labor Party
Australian Labor Party
The Australian Labor Party is an Australian political party. It has been the governing party of the Commonwealth of Australia since the 2007 federal election. Julia Gillard is the party's federal parliamentary leader and Prime Minister of Australia...
from 1970 to 1992. He was Deputy Premier of Victoria
Deputy Premier of Victoria
The Deputy Premier of Victoria is the second-most senior officer in the Government of Victoria. The Deputy Premiership has been a ministerial portfolio since , and the Deputy Premier is appointed by the Governor on the advice of the Premier....
in John Cain
John Cain II
John Cain , Australian Labor Party politician, was the 41st Premier of Victoria, holding office from 1982 to 1990.-Biography:...
's government from 1982 to 1989.
Early life and education
Fordham was born in Melbourne and attended North Footscray State School and Essendon High School before studying commerce and arts at the University of MelbourneUniversity of Melbourne
The University of Melbourne is a public university located in Melbourne, Victoria. Founded in 1853, it is the second oldest university in Australia and the oldest in Victoria...
. He worked as an accountant, and joined the Commonwealth Public Service Board in 1968.
Political career
Fordham unsuccessfully ran as a candidate for the electorate of SyndalElectoral district of Syndal
Electoral district of Syndal was an electoral district of the Legislative Assembly in the Australian state of Victoria.-Members for Syndal:...
in the 1967 Victorian election, but was elected as member for Footscray
Electoral district of Footscray
The Electoral district of Footscray is an electoral district of the Victorian Legislative Assembly. It lies just north of Melbourne and covers the suburbs of Footscray, Maribyrnong and Seddon....
in the subsequent election in 1970. In that same year, he was made parliamentary spokesperson on fuel, power and the arts; later, for education and federal affairs. In 1977, he was made deputy leader of the Labor Party in Victoria and deputy opposition leader under Frank Wilkes
Frank Wilkes
Frank Noel Wilkes AM , Australian politician, was Leader of the Labor Opposition in Victoria from 1977 to 1981. Wilkes was born in Melbourne and educated at Northcote Primary and Secondary Schools and Preston Technical College. During the Second World War he served in the southwest Pacific in the...
and John Cain
John Cain II
John Cain , Australian Labor Party politician, was the 41st Premier of Victoria, holding office from 1982 to 1990.-Biography:...
.
In the 1982 election, John Cain led Labor to victory after thirty years in opposition. Fordham became Deputy Premier
Deputy Premier of Victoria
The Deputy Premier of Victoria is the second-most senior officer in the Government of Victoria. The Deputy Premiership has been a ministerial portfolio since , and the Deputy Premier is appointed by the Governor on the advice of the Premier....
, and was also given the portfolios of education and educational services in Cain's cabinet. After the 1985 election, Fordham and Ian Cathie
Ian Cathie
Ian Robert Cathie is a former Australian politician.Born in Melbourne to printer George Mitchell Cathie and Sybil Balding, he attended state schools and then the University of Melbourne, where he studied teaching. On 5 January 1957 he married Christine Watson, with whom he had four children; he...
swapped portfolios, with Fordham becoming Minister for Industry, Technology and Resources.
VEDC affair
As industry minister, Fordham oversaw the operation of the Victorian Economic Development Corporation (VEDC), a government agency originally established by Rupert HamerRupert Hamer
Sir Rupert James Hamer, AC, KCMG, ED , generally known until he was knighted in 1982 as Dick Hamer, Australian Liberal Party politician, was the 39th Premier of Victoria, serving from 1972 to 1981.-Early years:...
's Liberal government in 1981, but which was restructured by the Labor government in 1984 to provide loan and equity funds to certain companies stimulate economic activity in Victoria. In October 1987, the VEDC became involved in the proposed public float
Public float
The float of a company whose stock is publicly traded has different default meanings depending on the presumed context.Without a qualifier it may refer to the entire market capitalization of the company or only its publicly traded equity....
of Wallace International, a pharmaceutical company. Despite a global stock market slump following "Black Monday
Black Monday (1987)
In finance, Black Monday refers to Monday October 19, 1987, when stock markets around the world crashed, shedding a huge value in a very short time. The crash began in Hong Kong and spread west to Europe, hitting the United States after other markets had already declined by a significant margin...
", Wallace proceeded with its float, which then failed, causing the float's underwriters to withdraw from their commitment. In early November 1987, Wallace applied to the VEDC to sub-underwrite the float, and received correspondence from Fordham agreeing to the VEDC to act as sub-underwriter, to make further loans to the company and to purchase $2 million worth of shares.
By the close of the float in January 1989, Wallace's failure to attract investors saw the company call up the VEDC's sub-underwriting agreement in February. The VEDC board met on 19 February, where they were informed of Fordham's agreement with the company for the first time, which it was required to endorse. Despite the funding injection from VEDC, Wallace recorded a loss of around $17.5 million, and in November 1988 the VEDC instituted legal action alleging misleading and deceptive conduct, and seeking the recovery of the $15 million it had invested.
The problems continued with several other VEDC clients going into receivership. The opposition seized upon the agency's failures, and called for Fordham's resignation and a royal commission into the affair. The government appointed accountant Fergus Ryan to conduct an inquiry into the VEDC's finances, management and investments. Ryan's report was released in 21 December 1988, finding that the VEDC had accumulated bad debt
Bad debt
A bad debt is an amount that is written off by the business as a loss to the business and classified as an expense because the debt owed to the business is unable to be collected, and all reasonable efforts have been exhausted to collect the amount owed...
s of $112 million. Fordham's appointments to the VEDC board were criticised, as were his agreements with Wallace which were seen to have caused the agency to have "entered into an agreement beyond its powers". An election had been held in October 1988 in which Cain's government had been re-elected, losing one lower house seat and control of the upper house. Cain re-shuffled his cabinet, moving Fordham to the Agriculture and Rural Affairs, and Arts portfolios.
Despite further opposition pressure over the VEDC affair, and speculation that Fordham would be forced to resign, Premier Cain backed his deputy, as did the Labor Unity faction of which Fordham was a member. During January, however, Fordham's support within the party dissipated. In particular, the Socialist Left faction had a cross-faction agreement to provide the next deputy premier, and worked actively to force Fordham to resign. He stood down on 31 January 1989, and a week later the caucus elected Joan Kirner
Joan Kirner
Joan Elizabeth Kirner AM , Australian politician, was the 42nd Premier of Victoria, the first woman to hold the position, which she held for two years prior to a landslide election defeat.-Biography:...
to replace him as Deputy Premier.
Fordham served out the rest of his parliamentary term on the backbench, and did not contest the 1992 election.
After politics
Since leaving politics, Fordham has worked as a consultant and has been active in several organisations in the East GippslandEast Gippsland
East Gippsland is the eastern region of Gippsland, Australia covering 31,740 square kilometres of Victoria. It has a population of 80,114....
region, including as Chairperson of East Gippsland Water and a council member of East Gippsland Institute of TAFE
East Gippsland Institute of TAFE
Advance TAFE is a TAFE institute located in the East Gippsland region of Victoria, Australia. It has campuses located at Bairnsdale, Lakes Entrance, Sale, and outreach centres located in the small towns of Buchan, Heyfield, Mallacoota, Orbost, Swifts Creek and Yarram.A wide selection of study...
.