The level of public disgust over the (completely fair) perception that both the Coalition and ALP increasingly spend their energies doing the bidding of those who give them cash money is reaching peak nauseation in the post-Dastyari gloom. Both major parties have suddenly come over all moral-like, competing in their demands that somebody should do something about it.
That’s all been an unfocused mess, as you’d expect when politicians are making policy both unwillingly and in response to unfolding events rather than on the basis of something boring like actual evidence.
But we can always rely on Tony Abbott to do two things in a public policy debate: reduce it to simple terms, and get the law wrong. And here he is, solving the political donations problem:
“We need to look long and hard at restricting donations to real people on the electoral roll. To that end, there should be no union donations, company donations or foreign donations.”
If not for one minor thing, you’d have to say Tony totally nailed it there. That minor thing is the Australian constitution.
Maybe it’s just Tony being Tony, but if you wanted evidence that Malcolm is also spending more of his time being Tony these days, then here’s what he said on the same subject on the same day:
“You would exclude not simply foreigners, but you would exclude corporations and you’d exclude trade unions.”
Turnbull did allude to possible “constitutional issues” but that was never going to make it into the headline. So we have both current prime ministers calling for a major reform of our political donations system — but is it possible?
We’ve actually been here before, quite recently. In 2012 the NSW government amended the Election Funding, Expenditure and Disclosures Act to include a new provision that said:
“It is unlawful for a political donation to a party, elected member, group, candidate or third-party campaigner to be accepted unless the donor is an individual who is enrolled on the roll of electors for State elections, the roll of electors for federal elections or the roll of electors for local government elections.”
Unions NSW challenged this law in the High Court, which declared it invalid six judges to nil. The problem was that it infringed the implied freedom of political communication, which the constitution protects. I’ll try to explain it without pictures.
In Australia, we do not have a right to free speech (unlike Americans, the lucky buggers). However, our constitution entrenches a system of government that involves a properly informed electorate freely voting for the candidates of their choice. The freedom of choice only works if we have freedom of communication about the things that inform that choice. So, the High Court says, the freedom of communication exists.
The court also says that it’s OK for governments to make laws that reduce that freedom, as they frequently do (simple examples include defamation laws and laws prohibiting incitement of politically motivated violence). However, the limit on their power to do so is that any such law must satisfy two tests: first, that it has a legitimate purpose; secondly, that it is reasonably appropriate and adapted to achieve that purpose in a manner that is compatible with our system of representative government (i.e., democracy).
It’s important to understand that the law being attacked is not measured by how much it reduces our freedom to speak. Important especially in this context, because the question is not whether the act of giving a donation to a political party is itself a form of political communication. That could be argued all day, but it isn’t relevant.
The point, which the High Court emphasised when it was asked this very question, is that a law that limits political donations necessarily puts a burden on freedom of political communication because politics costs money. Candidates and parties spend that money mostly on advertising, the most potent medium for telling voters what they want to say and trying to elicit support. If the money tap is turned down, the communication flow reduces.
The big question then is, what is the purpose of the prohibition on donations from anyone other than people enrolled to vote? The High Court couldn’t find one.
The court had already said, in the famous Lange case (which started all this freedom stuff) that “each member of the Australian community has an interest in dissemination and receiving information, opinions and arguments concerning government and political matters that affect the people of Australia”.
That means everyone, not just the voters. The court said our system of government “depends upon free communication between all persons and groups in the community. An elector’s judgment on many issues will turn upon free public discussion, often in the media, of the views of all those interested.”
The fact was, the High Court found, that there was no discernible link between prohibiting donations from non-electors and any legitimate purpose such as reducing corruption. By contrast, financial limits on donations have been upheld because they make sense in that context. Locking out some community members altogether, but not others, doesn’t.
The result is that a blanket ban on donations of the type being promoted by both Abbott and Turnbull would be doomed (as Turnbull surely knows). If the ban were limited to foreigners, it’d be a more interesting question. It wouldn’t be too hard to construct a rational argument in favour of restricting donations in that way, on the basis of a greater potential for insidious influence-buying from offshore. That could possibly pass muster.
It’s also not beyond prospect that a law, which placed greater restrictions on the ability of companies and unions to give donations to politicians than those on humans, might get through. Again, there are reasonable arguments that entities, possessing no soul as they do, are more likely to want a return for their cash which isn’t in the best interests of democracy.
Reform of political donations laws is desperately needed and there are plenty of positive changes that could be made and would be constitutionally valid. The silly distraction of these calls for changes, which have no chance of surviving, simply proves that our politicians should shut up, do their homework and come back to us when they’ve worked up something sensible.
Banning corporate and trade union donations may well violate the Constitution but acceptance of any political donations with a whiff of “foreign” about them have been regarded as “treason” for centuries (Queen EIizabeth I would have said “Off with his head”). Indeed a politician receiving donations from ISIS supporters like Turkey, Qatar and Saudi Arabia should (but won’t) be tried under anti-terrorism laws. Missing from implicitly Sinophobic Mainstream public discussion of the catalogue of huge foreign political donations that make Dastyari’s $1,670 even more extraordinarily trivial are (a) the huge sums given to the Lib-Labs by Zionists with massive loyalty to a nuclear terrorist, racist Zionist-run, genocidally racist, democracy-by-genocide Apartheid Israel ( e.g. Bob Carr in his book “Bob Carr: Diary of a Foreign Minister” reveals ex-PM Kevin Rudd’s intelligence that about one-fifth of the money he had raised in the 2007 election campaign had come from the Jewish community – one notes that Australia (population 24 million) has a Jewish population of about 100,000 and one would hope that more than 50% would be opposed to racism, genocide, Israeli Apartheid and the ongoing Palestinian Genocide ;see Lenore Taylor, “Bob Carr diaries: foreign policy was subcontracted to Jewish donors”, Guardian Australia, 9 April 2014: https://www.theguardian.com/world/2014/apr/09/bob-carr–gillard-foreign-policy-jewish-donors and Gideon Polya, “Racist Zionism and Israeli State Terrorism threats to Australia and Humanity”, Palestinian Genocide: https://sites.google.com/site/palestiniangenocide/racist-zionism-and-israeli ) , (b) the king-making $22 million spent by largely foreign-owned mining companies to successfully remove PM Kevin Rudd in a US-approved, pro-Zionist-led Coup and to emasculate the Mining Tax (this empirical success evidently prompting the gambling industry to commit $20 million to stopping gambling reform), and (c) the tens of millions of in-kind election propaganda support given to the neoliberal Lib-Labs (Coalition and Labor Right) by king-making US citizen Rupert Murdoch whose media empire includes newspapers read by 70% of Australian newspaper readers. While resolutely ignored by Mainstream media, politician and academic presstitutes, Australia is a Plutocracy, Kleptocracy, Murdochracy, Lobbyocracy, Corporatocracy and Dollarocracy in which Big Money purchases people, politicians, parties, public perception of reality, political power and thence more private profit – and much of this Big Money is from foreigners or from Australians with massive loyalty for a genocidal Apartheid rogue state.
A ban isn’t required, just real-time declaration and regular public scrutiny of the books. Otherwise we have system that looks like it’s been run by Al Capone.
I disagree that fast disclosure will change much. Public scrutiny won’t impair the shameless.
The big question then is, what is the purpose of the prohibition on donations from anyone other than people enrolled to vote? The High Court couldn’t find one.
The purpose seems obvious to me: prevent those who have no business being involved in political “communications” from influencing them.
Ostensibly, politicians are not there representing companies, or unions, or anything other than the people. So only the people should be giving them money. People are the “community”, so by definition nobody is “locked out” if only people are allowed to donate.
The argument that “communications” could be impaired by “turning down the money tap” when we have a publicly funded broadcaster, and especially given contemporary social media, is flat-out absurd.
But I say the real problem is large individual donations lending a disproportionate influence to a few. So any restriction on who can donate (and to me the constraint should simply be natural persons who are citizens) should also seek to impose a fairly low (ie: achievable by someone “normal”) annual cap on any individual donator. Say, the equivalent of 40 hours at minimum wage, or about $2,800. I actually consider donations from non-persons to be a bigger problem than donations from foreigners (and let’s face it, most non-persons are going to be foreign-influenced, if not outright controlled, in today’s world).
(Aside: my mind is blown that anyone on the High Court thinks getting money out of politics is a bad thing. No wonder the political process is rife with corrupton when it’s all but condoned by such important people.)
Exactly. What kind of “free communication” is it that depends for its “freedom” on finance?
Perhaps instead of banning donations from non-elector donors, a cap of perhap $1500, the tax deductible limit (no one seems to think that this limit is a barrier to free speech), should be applied to all donors. And donations should be in real time with some mechanism to reveal splitting of donations so that each is below the limit. And if any donor exceeds the $1500 in a year the excess should be taxed as a fringe benefit to the political party concerned. The donor pays the tax, not the party, and can donate as much as he, she or it wants, regardless of whether the donor wants the chosen party to behave as an employee or not.
Well said Michael Bradley. And here’s my two bob’s worth.
If memory serves, it was the Dark Prince himself, Nick Minchin (who along with Tony Abbott, screwed up the 1999 Republic Referendum at Howard’s bidding) who first raised the bright idea, in the JSCEM in Howard’s first term, of banning Union and Corporate Donations together. That’s only fair, right? Laughter all round, indicating nobody in the two major political parties would ever take it seriously for a second. But this unconstitutional folderol has kept the Press running around for dopey comment from the likes of Jabsley and Cavalier every time a donation scandal rises, and passes, in the 24 hour news cycle.
Hewson said it right the other night on Lateline. Just make the current system work. For instance, Real Time Disclosure. This is squarely within the original intention of the legislation, but the time period for disclosure has been extended so far it now takes more than a year to see who is up who. It would require a simple legislative amendment to effect. (and extra funding for the AEC to stay on top of the information).
The other real advance would be a Federal ICAC, so corruption is exposed and prosecuted. We yearn for these bloodless public executions..
As for caps on donations, sounds easy, and never works, just sends corruption underground. Window-dressing for the faint-hearted.
And stop parties demanding more and more public funding by providing Free Time on the ABC and SBS for political ads during campaign periods. This would dramatically reduce campaign costs to parties, and taxpayers.
But Moneybags Murdoch would not like that.
As for caps on donations, sounds easy, and never works, just sends corruption underground. Window-dressing for the faint-hearted.
This isn’t that hard to stop if anyone really wants to. You just need to realise the only way to deal with psychopaths is direct threat to their person so their amoral risk/reward calculator swings far enough towards “risk”.
Mandatory gaol time for donors (and those in overall control of the entity in the case of non-person donations) would be the best place to start. Let’s say, 12 months for a first offense, five years for a second and ten years for a third. Recipients should be up for similar, plus the stripping of any pensions or other life benefits.
Or we could modify the treason laws to encompass this sort of corruption…
So, we clean up donations.
But would that cover gifts? Which is what Sam Dastyari’s really was.