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Texts between Mark McGowan and Kerry Stokes revealed in Clive Palmer defamation case

Mark McGowan and Clive Palmer are suing each other in court for defamation. (ABC News)

The WA Premier sent a text message to the owner of the state's only daily metro newspaper, Kerry Stokes, thanking him for his support following the introduction of legislation that prevented businessman Clive Palmer from claiming damages in relation to a mining project, the Federal Court has heard.

The text message has been revealed during the defamation case brought by Clive Palmer against Mark McGowan over his comments about the mining magnate's attempt to enter the state in 2020 and attempt to pursue damages over Mr Palmer's shelved Balmoral Mining project.

Mr McGowan has entered his second day on the stand, where he was today grilled by Mr Palmer's lawyer, Peter Gray SC, over a series of texts exchanged with the media mogul.

Mr McGowan texted Mr Stokes at 4:59pm on August 11, 2020, a minute before the legislation was read into WA Parliament by Attorney-General John Quigley. 

The text said: "Kerry, we just introduced legislation to block a claim by Clive Palmer against the state of WA for $28 billion.
"The claim was currently in arbitration and was based on two decisions Colin Barnett made in 2012. Barnett rejected a proposal by Palmer to develop the Balmoral South mine."

He then told Mr Stokes the risk was too great and he had decided to legislate.

Mr Stokes responded three days later on the evening of August 14, shortly after the legislation had passed.

It also followed three days of front page articles in The West Australian, which depicted Mr Palmer variously as a cockroach and a cane toad.

Kerry Stokes: "Mark, well done. I think no-one else could have achieved the legislation in the speed you did. Reckon the insect heads should make a telethon sales item. People are with you! Kerry."

Mr McGowan: "Thanks Kerry I was asked about those marvellous front pages today, and I said, 'I think The West has gone a bit soft' . I appreciate the support enormously.
"All the mealy-mouthed tutt-tutting by some people about Palmer's 'rights' makes me sick."

Mark McGowan arriving at the Federal Court in Sydney to give evidence for a second day. (ABC News: Jake Lapham)

Mr McGowan was asked what specifically "made him sick".

He said it was "the fact it was a $30 billion claim", and went on to say he was also sickened by political commentary on Sky news programs that Mr Palmer's right to access $30 billion "was more important than the rights of 2.7 million West Australians". 

Mr Gray put it to Mr McGowan that his dislike for Mr Palmer was so intense he "couldn't stand him".

"I can't stand what he does," Mr McGowan said.

Palmer described as 'big fat liar' 

The court has also heard from texts between the Premier and his Attorney-General, Mr Quigley, around the time they were introducing the legislation to parliament.

Mr Gray suggested these communications revealed Mr McGowan's feelings about Mr Palmer.

Mr Gray read texts in which Mr Quigley described Mr Palmer as the "BFL", an acronym for "Big Fat Liar".

Mr McGowan responded "BFL — brilliant".

John Quigley described Mr Palmer as a "big fat liar" in a text message to Mr McGowan. (ABC News: Hugh Sando)

The Premier said this was a "piece of humour with a colleague" and he thought it was a clever reference to Roald Dahl's Big Friendly Giant (BFG).

Mr McGowan also said in a private text to Mr Quigley that Mr Palmer was "the worst Australian who is not in jail", something he conceded in court he had "exaggerated a bit".

"I suspect there are worse Australians out there that are not in jail," he said.

Mr Quigley also texted Mr McGowan that he looked forward to "dumping on (Mr Palmer) in a statesmanlike way tomorrow".

'Obsession' with Palmer probed

The court also heard Mr Quigley and Mr McGowan exchanged text messages about a legislative solution to Mr Palmer's claim, which Mr Gray said the state had lost "every step of the way".

In one such message, Mr Quigley wrote he would create a legislative "trojan horse", within which would be a small amendment which "will be a poison pill for the fat man".

Mr McGowan was also asked if Mr Quigley had become obsessive in his "desire to defeat Mr Palmer".

Mr McGowan (left) dismissed suggestions Mr Quigley (right) was obsessive about defeating Mr Palmer. (ABC News: Hugh Sando)

Mr Gray read a text from Mr Quigley in which he appeared to be referencing his separation from his partner in relation to his ability to pursue the legislative reform.

"Hey aren't you glad me single, not making love in the sweet hours before dawn, instead worrying how to defeat Clive :D :D".

"Does that look to you like it's a little obsessive?" Mr Gray asked.

"I think it's Mr Quigley having a joke," Mr McGowan replied.

"What I find with the AG is he is very determined to achieved outcomes."

Mr Gray asked if that was an approach he shared.

"I was very determined to achieve an outcome," the Premier said.

Mr McGowan then responded to that text, saying he did not want to let "Parker" or "any journo" know before they were ready, adding that Parker was a reference to a Perth journalist.

Secrecy of Palmer bill under microscope

Mr McGowan and Mr Quigley, who took the stand later, were quizzed on why they kept the intended amendment secret from all but a few prior to its introduction into parliament.

Mr McGowan was asked whether his commitment to the "gold standard for transparency" when he took office in 2017 was consistent with this approach.

Mr Quigley told the court he was concerned Mr Palmer may initiate legal action that would constrain the parliament from considering the bill.

Mr Quigley was also grilled on his revelation to the parliament of the figure of almost $30 billion in compensation sought by Mr Palmer, which parties to the dispute were required to keep confidential.

By revealing the figure in this way, Mr Quigley was covered by parliamentary privilege, which meant he could not be prosecuted for breaking this requirement.

Quigley denies deceitful conduct

Mr Gray asked Mr Quigley whether this behaviour was honest and to the highest ethical standard, to which he said it was.

Mr Gray also aired concerns that Mr Quigley's conduct was deceitful because while the state was agreeing to take part in mediation with Mr Palmer over the Mineralogy claim, he was planning to introduce the bill which would "torpedo" it.

Mr Gray: "That was deceitful, that was dishonest?
Mr Quigley: "No sir, I do not agree."

He was repeatedly asked about an interview he gave to the ABC where he compared the conflict with Mr Palmer to a "game of chess".

Mr Quigley was asked whether this related to a strategy whereby keeping the bill secret and lodging it after all Australian courts had closed was designed to prevent Mr Palmer lodging the arbitration action with a court.

He denied this, saying he was not aware of Mr Palmer having this option prior to receiving an email or fax from his chief of staff.

When cross examined as to whether this was true, the Attorney General said "on my oath, what I've said in the witness box this afternoon is the truth".

Power pole incident scrutinised 

Earlier today, Mr Gray questioned why Mr McGowan had told the court on Monday he believed Mr Palmer's comments about him had inflamed people into action that included a person driving a car into a power pole near his Rockingham home.

On Monday, Mr McGowan told the court Mr Palmer's comments created a "band of angry people in the community who believe this kind of stuff, and they do crazy things in relation to me and my family."

Mr McGowan claims Mr Palmer had stirred up anger in the community, which led to threats against his family.  (AAP: Dan Peled)

He said these also included threatening to kill his children, driving a fake armoured vehicle past his electorate office, sending a package of powder to his wife, threatening to "sniper attack" his family and to "hunt them down after I am out of office".

Mr Gray read a news report from the time, which quoted police saying the power pole incident was a driver under the influence and was not targeted at Mr McGowan specifically, which the Premier rejected.

Mr McGowan told the court when his children went outside to assist the driver, she yelled anti-vaccination sentiments at them before running off.

'Stunning election success'

Mr Gray also suggested Mr McGowan's "stunning election success" in 2021 indicated his popularity was not affected by Mr Palmer's comments.

"The scale of your victory and your extraordinarily high personal appeal ratings suggest nothing Mr Palmer said about you had caused any damage to your reputation at all," Mr Gray put to Mr McGowan.

Mr McGowan said he did not agree.

The court also heard Mr McGowan was sent a letter by Mr Palmer's lawyer on July 31 in which he was advised his description of the businessman as an "enemy of the state" were indefensible.

Mr Gray described a social media campaign, which sprung up following the comments, calling on West Australians to "cough at Clive Palmer".

Days after receiving the letter, Mr McGowan went on to describe Mr Palmer at press conferences as "Australia's greatest egomaniac" and an "Olympic-scale narcissist and ego-centrist of the highest order".

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