Tue, 13th May 2008

Labor broke the old rules. Labor will break the new rules too.

Senator The Hon Michael Ronaldson
Shadow Special Minister of State

“The Lobbying Code of Conduct released today by the Rudd Government won’t stop the Brian Burke’s of this world or other Labor Party identities from breaking the rules,” said Senator Ronaldson, Shadow Special Minister of State.

“Labor broke the old rules and Labor will break these new rules.

“Let’s not forget, we are only having this debate for one reason - because of a string of problems involving Labor identities, turned lobbyists who have overstepped the mark with their dealings with local Labor councillors and State and Federal Labor MPs.

“This Code, like its predecessor draft, still gives the Cabinet Secretary unfettered power under Section 10.3 to exercise ‘absolute discretion’ to not register or remove a lobbyist from the Register.

“The Minister now defends this by saying that he expects ‘that this power will be used in exceptional circumstances only’. Giving yourself unaccountable power with a caveat that you don’t expect to use it very much are words that should fill everyone who is involved in this matter with both fear and trepidation.

“It’s still a case of ‘all roads lead to Senator Faulkner and Prime Minister Rudd’.

“Also of very serious concern is that this Code does not even once mention unions. Unions are not only aggressive campaigners in Federal Elections, they are also the most aggressive lobbyists in politics.

“Their power and influence over Labor Governments isn’t just confined to visitations in ministerial offices. Last Australia Day, representatives of the MUA enjoyed the hospitality of Prime Minister Rudd at The Lodge. Who knows what was discussed and what was agreed? There certainly would not have been any minutes kept of the discussions that day.

“If this Code is to have any credibility it simply must deal with the issue of lobbying by union officials.

“Like the draft Code, this Code provides no penalties for Government representatives who breach the Code. It also still fails to account for the realities of Government – what constitutes an oral communication (under Section 3)? Does a chance meeting at the Parliament House coffee shop Aussies fall under this definition? What happens if a lobbyist has a chance conversation with a ministerial staffer out of sitting hours unaware of their engagement as a lobbyist?

“This Code, like its predecessor draft, does not properly deal with conflicts of interest, or even mention conflicts relating to spouses or close relatives. I am sure it’s not the intention, but in practical terms this Code may exempt Prime Minister Rudd’s Chief of Staff, whose wife is a senior lobbyist.

“Another practical flaw with this Code, which may lead to ministerial personnel problems down the track is the prohibition on ministerial staffers taking jobs in the private sector in an area which they specialise in from a policy perspective.

“In practical terms, this provision appears to be unfair. Let’s take a practical example, what happens in the situation where, hypothetically, Treasurer Wayne Swan loses the Treasury portfolio in a reshuffle. What happens to his economic advisors? Under this Code they have restrictions on what future jobs they can take.

“Another flaw in this Code is that by exempting companies who lobby directly there is nothing to stop Brian Burke working as an “employee” for a company part time; it exempts companies who put a former politician on their Board of Directors for lobbying purposes; it encourages companies to hide their lobbying activities by doing it directly; and it discourages an open and transparent understanding of lobbying.

“It is pleasing that Senator Faulkner has taken onboard the Coalition’s concerns about the draft Code effectively giving Labor law firms a special deal. As the Coalition argued on the day the draft was released, by giving lawyers a special exemption, we would be moving towards the American model where most lobbyists are registered as law firms, gaining their clients special lawyer/client legal privilege.

“Finally, and very importantly, why is this very important debate occurring just hours before Kevin Rudd’s first Budget?

“Here is a new Government, where Prime Minister Rudd trips the light fantastic about their openness, accountability and transparency, and they are dropping this controversial code in the afternoon before the Budget so it gets lost in tomorrow’s newspapers,” said Senator Ronaldson.