[Greens-Media] Local government – the new back door for Liberal donations

[John Kaye]

Local government – the new back door for Liberal donations

Media release: 26 November 2013

The Greens are calling for the cap on donations to political parties for
state elections to be extended to local government campaigns.

('Call to cap donations for council polls', Sydney Morning Herald, 26
November, page 9, http://j.mp/smh131126)

The Electoral Funding Returns for the Liberal Party (NSW Division) for
2012/13 show that 40 percent of their local government reportable donations
would have been illegal if they had been given at a state level.

(Liberal party donations return at: http://j.mp/efaLibs13)

The limit on donations of $5,000 per year in the Election Funding and
Disclosures Act applies only to state elections. Local government amounts
are uncapped.

Eight generous Liberal party donors gave amount of between $7,500 and
$20,000 each.

Three of these were from Victoria, including transport magnate Lindsay Fox
and the CEO and Chairman of Visy, Anthony Pratt.

Reportable donations made to Liberal Party (NSW) in respect of local
government elections

date        donor            State    amount
4/09/2102    Clark, Anthony        NSW    $10,000.00
20/08/2012    Davis, Kim        VIC    $10,000.00
4/09/2012    Denton, Robert        NSW    $7,357.16
17/08/2012    Fox, Lindsay        VIC    $10,000.00
23/08/2012    Jin, Pei            NSW    $10,000.00
4/09/2012    Moufarrige, Alfred        NSW    $10,000.00
16/08/2012    Pratt, Anthony        VIC    $20,000.00
21/08/2012    Stratikopoulos, Sam    NSW    $7,500.00
         Total > $5k             $84,857.16
         others not > $5k             $122,870.26
         Total                    $207,727.42

Total reportable donations for the period were $817,354.92

Media comments

Greens NSW MP John Kaye said: "The Liberal party has been caught exploiting
a massive loophole in the donations law.

"Back door donations of more than $84,000 have slipped through the legal
net because they were made to local government campaigns.

"The O'Farrell government should immediately introduce legislation to cap
donations to local government campaigns.

"It was a mistake to leave donations to local government uncapped after the
2010 changes to the law imposed a $5,000 limit on money going to state
elections.

"Donations were capped in 2010 to reduce the ability of high net wealth
individuals to purchase influence. Local government elections have become
the chosen route for some of these people to bypass the state campaign
limits.

"The flow of money from Victoria, purportedly for local government
elections, raises serious questions.

"Donations to a political party will purchase influence regardless of
whether it is for a state of local elections campaign.

"Donation limits were introduced to reduce the flood of money into
political parties and the influence it was purchasing. Without a cap on the
amount that can be given to  local government election, the laws will
become increasingly less effective as high net worth individuals shift the
account to which they give," Dr Kaye said.

For more information: John Kaye 0407 195 455

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John Kaye
Greens NSW MP
phone: 0407 195 455
web: www.john.nsw.greens.org.au
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