The rise of the professional lobbyist in South Australia
If the trend of recent years continues, South Australia will soon have twice as many companies registered to lobby our politicians as we have politicians themselves, writes Cameron England.
In mid-2014 there were 60 companies listed on South Australia’s lobbyist register.
As of the end of this financial year, there are 128, compared with the 47 members of the South Australian House of Representatives and 22 members of the Legislative Council.
And that’s just companies registered, mind you. While some of the companies such as former state treasurer Kevin Foley’s Foley Advisory are one-man outfits, many such as Hawker Britton, GRACosway, FTI Consulting and Edelman, are part of large national, if not international operations.
This translates to literally hundreds of well-paid lobbyists working behind the scenes to advance the interests of their clients, be they gambling companies such as Sportsbet, international private equity firms such as KKR or Bain, or defence companies looking to get a part of the nation’s lucrative defence spend.
And this doesn’t even take into account the in-house teams at large companies such as BHP and Santos, which are not required to register as lobbyists, although these companies almost always hire external help as well.
The rise of the professional lobbyist at both the state and federal levels is concerning, given the product these companies are selling is, unequivocally, access to, and influence over, our elected officials.
Lobbyists in South Australia need to register with the State Government, be listed on the publicly-available register, and also lodge an annual return – a list of meetings with public officials which sets out the bare minimum of details discussed.
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It’s an approach to regulation which the State Government’s own Independent Commission against Corruption argues is ripe for reform.
“Lobbying, at its core, is the attempt to sway decision makers in a particular direction,’’ The ICAC’s 2024 report, The Room Where It Happens: Lobbying and Influence in South Australia, says.
“Corruption, at its core, is the abuse of entrusted power for private gain. Seen in this way, it is clear why lobbying gives rise to the risk of corruption.
“Transparency is the key to protecting against corrupt lobbying and corrupt government decision making.’’
The report, released in August last year, made 31 recommendations, including that ministers and shadow ministers “must cause to be created and made publicly available on the internet ‘activity disclosure records’ detailing all communication with lobbyists, including where that communication is directed to their personal staff”.
The ICAC report recommended that these activity disclosure records be published monthly, and that attendance at events such as networking and awards night be captured under the scheme.
The report also recommended that the “cooling off” period, which prohibits former ministers and shadow ministers from lobbying in their area of influence, be increased to three years, from the current two.
There is also a recommendation that the lobbying regulatory scheme be extended to cover local government.
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The ICAC report points out that the current lobbying regime in South Australia is fraught with loopholes.
Deficiencies pointed out include the fact that members of parliament other than ministers and parliamentary secretaries are wholly excluded from the time limitations on lobbying, and the limitation for ministerial staff and senior public servants is short, at 12 months.
Independent thinktank The Centre for Public Integrity also argues, in a submission to the Victorian Government lodged earlier this year, that such schemes should, for obvious reasons, also capture the activities of in-house lobbyists.
The organisation also argues for “a more cohesive transparency framework by integrating the disclosure of ministerial diaries, lobbying activities, and political donations’’.
Given the fact that former senator Rex Patrick had to fight an 18-month freedom of information battle to get his hands on Premier Peter Malinauskas’s diary for just a few months in 2023 – a fight he won earlier this year – it seems unlikely that such reforms have a hope of being legislated in South Australia.
In its concluding comments, the ICAC report rolls out the oft-used Louis D Brandeis quote from 1914: “Sunlight is said to be the best of disinfectants”.
The report goes on to argue: “Transparency is the best measure to combat the corruption risks associated with influencing activity’’.
“In its present form the regulatory scheme in this state admits only a shaft of light on a small part of influencing activity. Most continues to be conducted in the dark, as far as the public is concerned.
“The risks associated with lobbying activity are serious, as demonstrated by the case studies presented in this report. They can result in serious harm to the public interest. Ultimately, they risk eroding our democratic system of government and public confidence in that system.
“If adopted, these recommendations will go some way towards improving the transparency of lobbying and influencing activity in this state and thereby reduce the risk (or the perception of the risk) of government decisions being made to suit private interests, as opposed to the interests of the South Australian public.’’
The government, to date, has implemented none of these recommendations, nor has it committed to doing so.
A spokesman for the government said: “The State Government is currently considering the recommendations and any potential changes in to the future.’’
Former State and Federal Politicians currently registered as lobbyists in SA:
- Christopher Pyne – Pyne and Partners
- Sam Duluk – Wayville Consultants
- Kevin Foley – Foley Advisory
- Iain Evans – Iain Evans Consulting
- Grace Portolesi – Grace Portolesi Connect
- Jack Snelling – Snelling Consulting
- Chris Schacht – Chris Schacht
