NSW Donations Inquiry report: Labor must implement before 2011 election

The Greens have major concerns however, which they have highlighted in a separate dissenting report, regarding recommendations which if adopted would give Labor and the Coalition parties a disproportionate share of public funding, to the detriment of minor parties, start up parties and independents.

“This inquiry report represents a big step forward in cleaning up the corrupting influence of donations. Premier Keneally must now move quickly to enact reforms before the 2011 election,” said Ms Rhiannon who was a member of the inquiry.

“The influence wielded by political donors over everything from government decisions on development, gambling and clubs and pubs will be less likely if key recommendations are adopted.

“Progressive recommendations include limiting political donations to $2,000 a year, increasing public election funding and providing funding for parties’ operational and administrative costs.

“This report is not a complete good news story, with some of the recommendations likely to undermine a fair contest at election time.

“The major parties have used the inquiry to entrench their power. One recommendation would ensure the major parties grab a disproportionate share of funding compared to the minor parties and independents,” Ms Rhiannon said.

Key problems highlighted by the Greens in their Dissenting Report

· Failing to ban developer and corporate donations outright. While limiting donations to $2,000 pa is a major improvement, an outright ban would have been preferable. It is operating successfully in Canada.

· An Administration Fund for political parties is weighted in favour of Labor and the Coalition and against the minor parties because it divides money according to how many seats they have in parliament, not the number of votes obtained.

· Repealing the ban on developer donations will assist the major parties. Although developer and corporate donations will be limited to $2,000 annually, over a four year cycle these donations will remain significant, particularly in a local council setting.

· Continuation of the Electoral Mail Out Account, unfairly advantages local sitting MPs by providing large amounts to spend on glossy brochures and letter campaigns.

· Failure to recommend a moderate election expenditure cap. The relatively high election expenditure cap will entrench the election chances of the larger, wealthier parties. Smaller parties will be unable to access vast amounts of funds to spend in an election campaign. It will also be a bigger drain on the public purse.

· Not recommending a larger election expenditure cap for independent candidates in a Legislative Assembly election fails to compensate independents for the statewide expenditure that parties are permitted, and could favour the major parties over independents.

More info: 0427 861 568. Visit the Greens Democracy4Sale donations project