State political donation reforms take shape
The State Government has approached other parties in state parliament with a proposal to cap election spending rather than donations as part of its donation reform package, InDaily understands.
The spending cap would only apply to the last three months of an election campaign.
The cap on spending is considered an alternate to capping total donations to political parties. Theoretically the spending cap would act as a proxy cap on donations, reducing the influence of donators by limiting the value of donations.
Parties would still be able to build up very large war chests of donated money, but that money would have significantly less value because of the cap.
There are concerns, however, that a three-month spending cap would allow parties to spend heavily on adverts in the months before the cap was activated.
The Government has put at least two other proposals to members of parliament, InDaily understands – a cap on the markup that can be placed on tickets to fundraising dinners, and public funding for the non-election expenses of parties.
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The markup cap would define the amount that could be charged over the cost of running the event, limiting the total profit that could be made.
Negotiations are at a very early stage and no decisions have been made or agreements concluded. The proposals floated by the government are intended as a starting point for negotiations, InDaily understands.
A spokesperson for Attorney-General John Rau confirmed the proposals had been circulated to MPs.
“These are early discussion points that aimed to kick-start conversations about donation reform. They do not reflect any agreed policy position.”
In February Weatherill told State Parliament donation reform was designed to ensure elections were decided on policies, rather than the ability to buy advertising.
“Our community must have confidence that no government decisions or policies are influenced in any way by the receipt of any donation from a private entity,” he said.
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“We need to stamp out any notion that access to members of parliament or members of the executive is facilitated by the payment of money.
“Our community must have confidence that elections will be determined by the policies and performance of the political parties, not by the size of their election war chest.”
Public funding had already been floated by Premier Jay Weatherill as a key reform. InDaily understands the Government is suggesting to other parties that the public funding will cover only administrative costs and won’t be used for election campaigning.
That means the funding will cover the cost of rent and electricity to election offices, but can’t be used to pay for political advertising of any form.
The public funding reform is being portrayed as substantially different to the deal negotiated between Prime Minister Julia Gillard and Opposition Leader Tony Abbott that fell apart in recent weeks after a vicious public backlash.
That deal would have substantially increased public funding for parties but would not have added a donation or spending cap.
It is not clear how the State Government will respond to the fate of the Federal bill, if at all.
Deputy Premier John Rau has been leading reform negotiations with the other parties.
Donation reform has been championed by a diverse group of political leaders over the last year, including influential Labor union boss Peter Malinauskas and former Leader of the Opposition Isobel Redmond.
When the Premier announced his intention to reform donation laws in February he received in-principle support from the Greens, Family First and the Liberal Party.
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