[Greens-Media] Greens move to ban mining and contracting donations after ICAC allegations

[John Kaye]

Greens move to ban mining and contracting donations after ICAC allegations

Media release: 3 March 2014

The Greens are introducing new restrictions on corporate donations to
political parties to address the track record of undue influence and
corruption arising from mining approvals, public private partnerships and
government contracts.

('Bid to ban miners' political donations', SMH, 3 March, p. 11,
http://j.mp/smh140303)

As the ICAC begins its investigation of allegations of corruption involving
both Labor and Coalition governments surrounding contracts between Sydney
Water and Australian Water Holdings into which connections with the
Wallarah2 coal mine proposal on the Central Coast have been drawn, Greens
NSW MP John Kaye announced his party's intention to introduce legislation
to extend the current bans on political donations from the tobacco,
alcohol, gambling and real estate development industries.

The bill will seek to prohibit donations to political parties from any
corporation or its close associates that:

¨    is or has been in the past four years involved in mining and mineral
exploration or extraction, including coal seam gas, coal, minerals and
water, or

¨    holds or has in the past four years a contract for the provision of
services or materials with the NSW government or any of its agencies, and
the value of the contract exceeds $50,000 in any one year.

The definition of a close associate of a corporation includes a director or
officer (and their spouses) and a person whose voting powers is greater
than 20 percent.

In addition, the Greens bill will prohibit any company that has made a
political donation in the past four years or a close associate of which has
made a donation in the past four years from:

¨    making an application for an exploration licence or the development of
mine, coal seam gas extraction or any other extractive industry, or

¨    entering into any contract for services or the supply of materials
with the NSW government or any of its agencies.

This provision would be phased in over a four year period by only
accounting for donations made after the passage of the legislation through
both houses of parliament.

These bans are specific and focused on industries where there is both
motivation and a track record of influence and corrupt behaviour.

The provisions of the bill would be much more likely to survive a High
Court challenge than the O'Farrell government's blanket ban which the High
Court found in December last year was unconstitutional.

The judges accepted the argument of Unions NSW that the ban on all
donations other than those from individuals on the electoral role created
an imposition on the implied freedom of political communication that was
not proportionate or justified by the anti-corruption objectives of the
donations legislation.

Media comments

Greens NSW MP John Kaye said: "NSW governments, both Labor and Coalition,
have shown that they cannot deal with industries that have the ability to
make substantial gains from ministerial and cabinet decisions without
generating substantial, and in many cases proven, allegations of corruption
and influence peddling.

"With just 13 months to go to the state election and fund raising beginning
in earnest, it's now time to shut down the risk of the 'decisions for sale'
culture tainting the next term of government.

"The O'Farrell government claims they want to 'improve trust and
transparency in the state's electoral funding system'. The High Court ruled
out a blanket ban on corporate donations because they couldn't identify the
specific anti-corruption benefits.

"This legalisation is targeted against two of the highest integrity-risk
industries that directly benefit from government decisions. It addresses a
live and present problem for NSW that crosses party boundaries and it is
much more likely to survive a constitutional challenge," 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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