Monique Ryan (Kooyong, Independent) Share this | Link to this | Hansard source

I move:

That this bill be now read a second time.

Lobbying activities are communications with government representatives to influence government decision-making. We know that, in a democracy, the right of bodies to make representations to government, to have access to and an impact on policymaking, is fundamental to the proper conduct of public life and to the development of sound policy. However, lobbying leads to corruption if it prompts decision-making which is not merit based, honest and transparent.

The existing federal Lobbying Code of Conduct is an administrative instrument aimed at ensuring the conduct between lobbyists and government representatives is conducted in accordance with public expectations of transparency, integrity and honesty. However, that code is toothless, and it has failed. It is too limited. It does not engender transparency. And it is not enforced.

Commercial lobbying is a multibillion dollar industry in Australia. The current public Register of Lobbyists applies only to third-party lobbyists—paid professionals engaged by clients to influence public officials on their behalf. It does not include in-house lobbyists—those employed within an entity purely to undertake that role. So it applies only to 20 per cent of the lobbyists roaming our corridors, knocking on our doors, seeking to influence our decisions. The other 80 per cent—who knows?

The register as it stands does not include company executives, NGOs, not-for-profits, charities, think tanks, research centres, religious organisations or trade unions. On 5 November 2023, the register included 703 third-party lobbyists. Forty per cent of those were former politicians, ministerial advisers and senior public servants.

There are three main reasons for regulating lobbying. The first is to prevent corrupt behaviour by lobbyists and public officials—cash for access, cash for comment and cash for approvals. The second is to ensure fairness in decision-making by stopping secret lobbying by vested interests. The third is to ensure that government decisions are merit based.

Enforcement of lobbying codes in this country has been dismal. In 2018, the Auditor-General found that the Department of the Prime Minister and Cabinet hadn't suspended registration of a single lobbyist since 2013—this despite at least 11 possible breaches of the code of conduct during that period. The current code meets only one of the 10 Principles for Transparency and Integrity in Lobbying set down by the global Organisation for Economic Co-operation and Development. Suggestions that the code be better enforced have been actively rebuffed by successive governments. We need an independent regulator administering a strong legislative scheme, not a complacent and conflicted government waving an administrative framework with the cohesion and effectiveness of a wet tissue.

The bill I'm presenting today was developed with the generous support of a number of transparency organisations—bodies that will be overjoyed to enter upon the new federal lobbying register. We're already behind the United Kingdom, Canada and the US. They have legislated strong integrity frameworks, the power of which includes their scope: postemployment restrictions, penalties, independence of the administrative entity and transparency both of monitoring and of public reporting. All of those things are addressed in this bill.

The bill includes provision for a new, publicly accessible online lobbyist register which will include in-house as well as third-party lobbyists. Lobbyists will be required to lodge online quarterly returns reporting who they've met with, for how long, where and why. Ministers will publish their diaries, too, so that we can cross-compare and verify that reporting.

The bill maintains a longer postemployment prohibition such that ministers and senior staff are banned from working as lobbyists for three years after they leave parliament. It legislates a register of senior government appointments so that we know who is working where and when during and after their time in this place.

It regulates enforceability. There will be fines and bans for lobbyists who are in breach of the bill. Rather than a self-regulated code bedevilled by intrinsic and systemic conflict of interest, the code will be independently enforced by our independent integrity commission.

We want and we need to hold public officials to a higher standard of integrity. When they leave public office, officials shouldn't be able to use insider knowledge for personal gain or the commercial benefit of their new employer, and they shouldn't be making decisions prior to leaving office which might advance their employer-to-be. We have seen time and time again in this place the revolving door, the golden escalator, between this house and industry, with ministers and public servants accepting lucrative private sector jobs with unseemly haste immediately upon leaving parliament.

A code of conduct which allows our defence minister to discuss defence business with a global contracting firm in cabinet and then take a job with that firm nine days after leaving politics is a code which is corrosive of public trust in democracy. A code which allows our foreign minister to award more than $500 million in contracts to a private organisation and then accept a job with that contractor less than 12 months after leaving politics is corrosive of public trust in democracy. A code which then allows the Prime Minister discretion over its own enforcement is corrosive of public trust in democracy.

Sunlight is the best medicine, and it's time to shine a light into the halls of this place to illuminate the workings of the light on the hill. We need to know who has the ears of our politicians and we need to close and stop that revolving door. Australians deserve to be able to trust their government. They want this bill debated by their representatives and they want this law passed by this government.

This bill is an important contribution to the restoration of integrity and transparency in this house, and I commend it to the House.

Milton Dick (Speaker) Share this | Link to this | Hansard source

Is the motion seconded?

Kate Chaney (Curtin, Independent) Share this | Link to this | Hansard source

I second the motion. I'm pleased to support the Lobbying (Improving Government Honesty and Trust) Bill 2023. I'm proud to stand with a group of crossbench parliamentarians who are fighting so hard to reflect the wishes of their communities to strive for better transparency, greater integrity and more accountability in politics. Part of accountability and integrity is understanding who is influencing our top decision-makers. We should know which lobbyists have access to ministers and cabinet. Currently, Australia lags behind our counterparts in Canada, the UK and even the US in the transparency and accountability of lobbying activity. In each of those countries there's a legislated lobbying regime with clear reporting obligations arising from lobbying activities.

Currently, in Australia's federal parliament, we only have an administrative system, governed by the Lobbying Code of Conduct and overseen by the Attorney-General's Department. There are no meaningful consequences for breaching the federal code of conduct. The code of conduct applies only to professional lobbyists acting on behalf of third-party clients. That means lobbying activity that's undertaken in-house by businesses and industry bodies isn't included. In-house lobbyists are able to conduct invisible activity without regulation or oversight.

Australia's comparatively weak regulation heightens the concern expressed by the Grattan Institute. It says, 'Disparity in access is a concern if it translates into policy decisions that benefit the few at the expense of the many.' Grattan Institute's analysis showed that highly regulated businesses have the most meetings with senior politicians, make the most use of commercial lobbyists and are disproportionately large donors.

We have a right to know who is accessing our ministers and executive so citizens can make up their own minds about whether our government is focused on the public interest or private and vested interests.

In the explanatory memorandum to my restoring trust bill, which I tabled in August this year, I referred to the need for disclosure of ministerial diaries and the expansion of the lobbyist register as important other reforms that complemented the reforms in that bill to return trust to politics. This bill delivers those contemplated reforms. It requires the publication of ministerial diaries and requires both professional and in-house lobbyists to tell us who they're meeting with. By substantially limiting gifts and hospitality from lobbyists this bill also continues the work of my restoring trust bill in reducing financial influence.

I support this bill as another effort of the crossbench to pursue greater transparency in government and in decision-making.

Debate adjourned.