House debates

Tuesday, 16 November 2010

Commonwealth Electoral Amendment (Political Donations and Other Measures) Bill 2010

Second Reading

9:06 pm

Photo of Daryl MelhamDaryl Melham (Banks, Australian Labor Party) Share this | Hansard source

The interesting thing is that the members opposite rail against unions. What the members opposite allow is for unions to use the system under the opposition’s preferred system, which would not lead to disclosure. What I am arguing is: if unions want to disclose under the system I am proposing, there would be more disclosure. The unions could run campaigns similar to that of the Millennium Foundation and, in relation to raising large amounts of money under the current law, if the law were changed as we propose, it would mean more disclosure. What this is about is trying to stop disclosure. It is an argument about transparency.

It is also an argument about anonymous donations and foreign donations. I notice that those opposite who were members of our committee—and the member for Cook was one of them—did not rail against specific sections of this bill. I took it from their minority report that there was a general argument about electoral reform and political donations that they thought should be wrapped up into a whole range of things. But in relation to some of the specifics—and I do not say this in relation to the threshold, but in relation to other specifics—I felt that there were no objections to the way in which the committee conducted itself and the evidence on a number of proposals within this bill. There were only a couple. In particular on anonymous donations they went from $50 to $250. That is my recollection of the way the matter was conducted.

I understand there is a philosophical objection. I am saying quite clearly that I believe that there would be more public confidence in the system if there were lower thresholds, if we went back to $1,000 instead of the current system. Let’s have a look at what is proposed. If one goes to the explanatory memorandum for this bill, it says:

The Bill contains provisions that will:

  • reduce the disclosure threshold from ‘more than $10,000’ (indexed to the Consumer Price Index annually) to $1,000 (non-indexed)—

that is something I think the coalition are feral about—

  • require people who make gifts at or above the threshold to candidates and members of groups during the election disclosure period to furnish a return within 8 weeks after polling day …

I would argue that is reasonable. The explanatory memorandum continues:

  • Agents of candidates and groups have a similar timeframe to furnish a return in relation to gifts received during the disclosure period—

in other words, much earlier disclosure. The bill will also:

  • require people who make gifts, agents of registered political parties, the financial controller of an associated entity, or people if they fall within the relevant provision, who have incurred political expenditure to furnish a return within 8 weeks after 31 December and 30 June each year;
  • prevent ‘donation splitting’ by ensuring that for the purposes of the $1,000 disclosure threshold, related political parties are treated as the one entity—

I think donation splitting is something that needs to be addressed, because it is one way of hiding donations. The bill will:

  • make unlawful the receipt of a gift of foreign property by political parties, candidates and members of a Senate group. It will also be unlawful in some situations for associated entities and people incurring political expenditure to receive a gift of foreign property;
  • extend the ban on anonymous gifts to encompass all anonymous gifts except where the gift is $50 or less and received at a ‘general public activity’ or a ‘private event’ as defined—

I know that in their minority report the opposition members of the committee said $250. Further, the bill will:

  • tie public election funding to reported and verified electoral expenditure. In other words, unendorsed candidates, registered political parties and unendorsed Senate groups, who receive at least four percent of formal first preference votes in an election, will receive the lesser amount of either:
i.
the ‘electoral expenditure’ that was actually incurred in an election period; or
ii.
the amount of $2.31191 (indexed to CPI every 6 months) per formal first preference vote received …

What is the opposition’s view on that? My understanding is that the opposition was not opposed to that particular proposal because it was not about enriching candidates at an election. The explanatory memorandum continues, stating the bill will:

  • provide for the recovery of gifts of foreign property that are not returned, anonymous gifts that are not returned and undisclosed gifts; and
  • introduce new offences and penalties related to the new measures and increase the penalties for existing offence provisions.

I have heard a lot about bipartisan support. In all my time on the electoral committee, the evidence shows that I have attempted to embrace bipartisanship wherever possible. In a number of areas it is not possible, because we have different philosophical views. That is the reality of life. The opposition might agree to some things; we will not. However, my approach is not to shout down the other side. My approach to conducting the joint standing committee is to allow both sides to obtain evidence, bring evidence before the committee, inform themselves and allow matters to be argued on their merits. Sometimes an argument might have merit but will still be voted down.

In the 20 years that I have been here, there has always been opposition on these particular areas from those opposite. They have never wanted to participate in change to these provisions, because they have always had a view. At one stage Senator Minchin was on the committee while a parliamentary secretary, which is generally unheard of. He was a formidable member of the committee with his vast experience from South Australia. He did not give an inch when it came to disclosure provisions, the Millennium Foundation or a whole range of other things.

I know the honourable member for Mackellar is currently on the committee and I look forward to working with her during this term of parliament to see if there are things we can agree on. If history is any guide, there are things we will agree on and there will be much we will disagree on. And we will not need generators because I am sure the electricity will fly! That is the way it should be. But let’s admit the prejudices we have. It seems to me that those opposite have a real anti-trade-union sentiment running through their veins. They are dirty on the trade union movement because the trade union movement’s involvement has historically been to support this side of politics. That is a legitimate use of trade union resources because, after all, our history is that we came out of the union movement and—

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