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Wednesday, September 1, 2010

Limits on political donations to stop Labor’s derailment

Author: Staff Writer Posted: Thursday, 2 September 2010
By Millicent Caffrey

To reverse the image of the state government as a corrupt train wreck beholden to interest groups, Premier Kristina Keneally has proposed dramatic electoral funding reform. This would place a $2000 limit on individuals donating to candidates and a $5000 limit on individuals donating to parties.

City of Sydney Labor councillor Dr Meredith Burgmann has welcomed Keneally’s proposals.

“I think the main benefit is that the public needs to see democracy and justice happening,” Dr Burgmann said. “It won’t if it sees large amounts of money being donated to parties.”

Dr Burgmann has pointed to developer donations as the most corrupting influence for members of local government. She insists that her campaign used no funds from developers, alcohol or cigarettes.

Some councillors may not welcome the ban of corporate donations. According to the Electoral Funding Authority, Liberal councillor Shayne Mallard received at least $11,000 from companies owned by the hotelier George Thomas in 2008. In June 2009, Mallard voted on development applications for two of Thomas’ hotels. He was cleared of any misconduct in February of this year.

However, Dr Burgmann points out that the only problem with cutting all donations is that, “You then need large amounts of public funding.”

It could be argued, however, that major parties are already floating on the money of citizens, with Australian Hotels Association injecting four donations worth $130,000 to NSW Labour in the financial years 2008-09.

The insidious nature of corporate donations was vocalised by Rob Monson, son of a lung cancer victim, in a question to Tony Abbott on the ABC’s Q and A on August 16.

“What I want to know in all good conscious and especially as a former Health Minister, will you continue to lead a proud political party that still accepts donations from those corporate killers?”

“But where do we draw the line?” Abbott deflected. “Do we refuse to take money from the motor industry because cars can kill under the wrong circumstances?”

This would be a smart response if the Liberal Party had accepted any donations from the motor industry in the financial year 2008-09. According to the Australian Electoral Commission, it did not. Tobacco companies, however, contributed a princely sum of $83,000 to support the Liberal campaign.

Large political donations place control over political processes in the hands of corporations, not individuals. The independents on whom the election may now hinge have listed electoral funding reform as one of their seven requests to Labor and the Coalition. Independent senator for South Australia, Nick Xenophon, has perhaps summed up how political donations are affecting Australian politics. “If you give a politician a $1000 donation you’re a supporter but if you give them a $100,000 then you’re an owner of that politician.”


1 comment:

Tom said...

I completely agree.

As I understand it the paramount aim of any business in a capitalist society is to make money.

Therefore it is the responsibility of the government to regulate the market so that businesses can pursue this aim without exploiting people.

But how can government regulate the market when politicians are beholden to corporations?