[Greens-Media] Labor's donations laundering doesn't wash

[Lee Rhiannon]

Media Release - 25 August 2008

Labor's donations laundering doesn't wash

Greens MP and donations spokesperson Lee Rhiannon says revelations that a current Labor candidate for the City of Sydney council, Linda Scott, received developer donations via other Labor MPs while promising not to take property donations shows why corporate donations must be banned (p. 8, 'Labor election funds tangled in development', Sydney Morning Herald). 

Ms Scott's campaign for the state seat of Sydney in 2007 received donations from Labor MP Kristina Keneally who received donations from Labor MP Frank Sartor's campaign, which was part funded by developer donations.

Greens candidate for the City of Sydney elections, Councillor Chris Harris said,
"If this scam is used in the upcoming local council elections it will allow Labor candidates to argue that they have not received money from developers, hotels or other suspect sources when indeed they have.

"Premier Iemma's new donations laws have done little to improve the disclosure rules. 

"Developer donations can still be funnelled and effectively hidden from view.

"If state Labor MPs who have received money from the property industry donate to local government candidates developers will still be able to wield influence. 

"Labor candidate for the City of Sydney Meredith Burgmann's promise to refuse to take money from developers, either directly or via head office, is meaningless unless she commits to not accept money from Labor MPs, many of whom accept corporate donations.

"Voters will not know who is bank rolling the candidates and political parties in this local government election as details of donations received in the ten weeks prior to the election day are not revealed until the end of the year.

"The Labor government needs to comprehensively clean up our donations system. Otherwise dirty developer money will continue to be laundered by what looks like a donation from a supportive Member of Parliament," Clr Harris said.

Greens MP Lee Rhiannon said,  "Donations between Labor candidates make it hard for the public to follow the money trail and identify who are using donations to buy access to decision makers.

"The funnelling arrangements might be legal but they are certainly not transparent or ethical.

"These revelations highlight the need to ban corporate donations and cap election expenditure. Without such changes unscrupulous political operators will continue to find loopholes," Ms Rhiannon said. 

For information: Chris Harris 0407 469 384, Lee Rhiannon 9230 3551, 0427 861 568


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Lee Rhiannon, MLC
The Greens
Parliament of New South Wales
Macquarie St 
Sydney 2000
Tel: +61-2-9230 3551 
Fax: +61-2-9230 3550
lee.rhiannon at parliament.nsw.gov.au
http://www.lee.greens.org.au/
http://www.democracy4sale.org/ 

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