For bodies that depend heavily on taxpayer funding, political parties are some of the least regulated, least accountable institutions in the country — which is exactly the way they prefer it.
After last year’s federal election, federal political parties were paid $68.6 million in taxpayer funding, based on their share of votes (another $1 million went to independent candidates who achieved more than 4% of the primary vote).
That’s separate from the $300 million that will be spent on staff for politicians in their electorate offices and for ministerial advisers, and $220 million spent on the remuneration and administrative expenses of MPs and senators (there’s also around $34 million spent a year on services for them).
In other jurisdictions, there’s other forms of taxpayer support. In Victoria, for example, beyond the $29 million in public funding handed to the political parties after the last election (that amount has been significantly increased for future elections) there is also administrative expenditure funding worth several million dollars, or policy development funding.
Now, running a democracy isn’t cheap, and each of these forms of support can be justified as the costs of having an effective and functional democracy. But as we described yesterday, a solid portion of this funding is not for democratic activities or policy development or enabling MPs to better serve constituents, but for politicians to engage in intra-party activities on behalf of themselves or factional leaders.
The major parties, in particular, are defrauding the taxpayer by using money intended as a cost of democracy to fund their own internal conflicts.
And note that the majority of this funding is directed at staffing for politicians, not the politicians themselves. Politicians are directly accountable to the electorate every three years at the federal level and every four years at the state level; staffers are not accountable to the electorate except indirectly — i.e. they may lose their jobs if their employer loses her seat or they lose government.
Indeed, there is little to no accountability for staffers. They can be called before the Australian National Audit Office (ANAO), if it chooses to use its powers of compulsion. But they are not accountable to parliament in any way, with both sides of politics having acted to ensure that staff cannot be required to appear before parliamentary committees.
And government staffers — far more numerous, and with access to far greater resources than those working for oppositions — are also protected by the unwillingness of police forces and prosecutors to embarrass governments by prosecuting or even investigating political misconduct.
For example, the AFP refused to investigate the serious leak of a classified report by someone in Peter Dutton’s office or in a senior position in the Home Affairs portfolio, and refused to investigate the peddling of fabricated documents by Angus Taylor’s office.
Victorian police refused to charge anyone after investigating the notorious Andrews government “red shirts” scandal — as blatant a misuse of taxpayer money as has been seen in that state for years.
And in the unusual case where the AFP recommended prosecution, in the case of the staff of Michaelia Cash leaking what turned out to be an illegal raid on a trade union, the government’s hand-picked director of public prosecutions overruled the police and refused to prosecute.
This apparent immunity to accountability even for criminal acts, however, is of a piece with the broader lack of accountability of political parties. As Crikey has endlessly rehearsed, political parties have only limited donation reporting requirements under federal law, and the requirements that do exist are poorly enforced — politicians and parties can disclose donations many years later without consequence.
Overall financial disclosure requirements are significantly less for political parties than for major charities, which are regulated by a bespoke regulator. Nor are political parties, other than in relation to specific kinds of direct funding, subject to the ANAO.
Political parties have also given themselves exemptions from privacy laws, allowing them to accumulate huge databases of Australian voters (all controlled by political staffers and party executives) with no accountability for the use and abuse of that information.
They’re exempt from other laws like the Do Not Call Register, and laws dealing with false and misleading advertising they apply to everyone else engaging in advertising. And under parliamentary rules, politicians are prevented from using fora such as question time to inquire about party administrative and operational matters.
Political parties, and the staff who make up the bulk of the people within them, operate inside a bubble in which taxpayers pay them handsomely but they’re not subject to the kind of requirements that other recipients of taxpayer funding are — or even that most citizens are.
Is it any surprise when staffers behave as though they’re beholden to no one but their factional bosses?
How do we fix political funding? Let us know your thoughts by writing to letters@crikey.com.au. Please include your full name to be considered for publication in Crikey’s Your Say section.
“Value for money”? More “Banged for our buck”.
Any wonder polls are showing that people are increasingly pissed with “democracy”?
Then again we haven’t had a real one for so long.
All we get is the crap we’re served by the crap we get to vote for – served up by self-serving parties more obsessed with personal ideologies and ego than the bigger picture.
Is it because we the people are pissed with “democracy” Or more so because we witness “loss” of democracy?
AFP and any number of State/Territory Police Forces are straightforward ‘intimidated’ by political masters? Bernard’s need to shine a light upon “vast sums of taxpayer funding but face little or no accountability for how used” is not so much about ‘cost’ but implied corruption?
Accountability, transparency and calculated destruction of democratic institutions screams loss of democratic values and begin process of citizenship subjugation. Too strong? Well show us that our votes actually count . . . eh?
Of course when we punish our politicians for actually coming up with policy, to some extent we are getting what we deserve….
Reasonable point…remind me of the last time a pollie came up with something worthwhile.
Y’know, the “vision” thangy.
The answer is as simple as a 100% Independent National Integrity Commission. The policy for this exists & has passed the Senate, yet our government doesn’t seem to want to even debate the matter, nor will they bother putting up their own, massively watered down version. Something to hide, perchance?
Trouble is that “Labor” is equally opposed to such a body.
But full on with weakening, yet further, donation legislation.
wooda thunk?
The only way an ICAC can get started is by having a grandfather clause indicating past corruption will be forgiven; but, any corrupt actions after an ICAC has been approved can be investigated
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The only way an ICAC can get started is by having a grandfather clause indicating past corruption will be forgiven; but, any corrupt actions after an ICAC has been approved can be investigated.
The same rule of law and accountability standards should apply to political parties as applies to electors and other organisations in the community. There is no reason for a lesser standard , it probably should be a higher standard. Each member of parliament should have a designated amount of resources which should be audited to ensure it meets the guidelines. Staffers should – as they are paid by the commonwealth – be subject to the normal rules of employment.
Political parties should not get money based on election results. That is absurd and a waste of money.
They should survive by donations – if they are worth something then people/organisations will contribute. Contributions should all be recorded real time and open for public scrutiny. Certainly an high standard corruption commission needs to be in place.
Yes , political parties and politicians, if they wish to regain respect in the community , need to lead by example and set the standard that all should aspire to . Anything that can rule them in and make them responsive to their electorate is a winner.
Re surviving by private donations -parties are actually PROHIBITED in the Constitution (anyone remember that?) – MPs are required to be responsive solely to their constituents (anyone recall them?).
So, de jure parties have no function other than as private clubs, akin to butterfly or stamp collectors, and should have no place nor function in an election.
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The lack of transparency and accountability is worse and of more concern with political donations than with public money paid to Political Parties.
More but capped public money and no donations to political parties, would get rid of a more sinister problem. They will have to be careful not to misspend on perks, internal intrigue.
BTW. It is more accurate, less open to manipulation, less emotive to use the term Public money than Taxpayer money. How we use language is important especially in the ideologically contested area of government finances. Economists will argue about the source of government spending but what is true is that it is Public not Private money. Our currency is ‘owned’ by the Country not by the individual who has it ‘in their hands’ for a time. This is fact, not ideology.
Indeed. I am irritated every time that someone describes government expenditure as “taxpayer” money. I am sure that a vast fraction pf the population have been indoctrinated to believe that governments are like households, and hence have only two options to fund anything, namely to tax or borrow (hence acquiring a debt that must be paid off by future generations. Certainly taxation is an important tool, but not to provide revenue for government spending. The use of the term serves only to reinforce the lie that governments are like households.
I have no doubt that many also believe that banks issue debt based only on the money that they have accumulated in deposits.
Agree, there’s a lot of that about. Sigh.
Oh for an intelligent electorate.
Oh, look … something shiny!
But we can’t have the hoi polloi actually understanding the machinations of the manipulators of national wealth,now can we?!
Ours is a fiat currency, fully at the mercy of the government in power.
And it would be good if the parties had less cash to feed to those awful advertising agencies to produce false and misleading bullpoop in the lead up to elections… give us break and encourage us to find out what is really on offer.
The ABC could help hugely there if their funding was sheltered from attack by the government in power.
Both “sides” – lest we forget David “Down” Hill’s placement as CEO of our ABC.
Can anyone recall who appointed him?
Nah, didn’t think so.
Seems that the afp needs an overhaul as well.
How about abolition, as no longer fit for purpose?