JOHN FAULKNER:
Thank you for coming along. It's no secret that our electoral laws and their application have been falling behind world's best practice. Some of the challenges that we face include growing concerns about the integrity of our political financing system. The spiralling cost of election campaigns which are creating impetus for what has been characterised, as no doubt you know, as a campaign fundraising arms race.
New media and technologies which challenge our legislative mechanisms. The rise of third party participants in our election campaigns. And challenges that are posed by our federal system. In fact, we have, of course, overlapping electoral laws which sometimes create uncertainty and confusion.
I've been concerned now for many years that campaign fundraising practices have the potential to degrade the public's trust in the political process. There's a public perception of undue influence, which needs to be addressed. And this perception undermines confidence in the processes of government. People then start to question whether decisions made by governments, are made on their merits alone.
I've always said that accountability and transparency are crucial to integrity in government; and this is why this, the first of two green papers on electoral reform, is devoted to donations, funding, expenditure and disclosure. This green paper considers the values our electoral laws ought to serve, and the measures that are available to us to pursue those values.
During the development of the green paper, I've sought both the cooperation and the participation from states and territories, in an effort to increase harmonisation in approaches to political finance.
In May, we had the first meeting of state, territory and commonwealth ministers, with responsibility for electoral affairs. And I'm pleased to be discussing these very important issues again, with state and territory ministers next week. Those ministers have had input into the green paper and I plan to discuss the outcomes of public consultation with them, of course, again next year.
Ladies and gentlemen this green paper was prepared by a taskforce comprised of the Department of Prime Minister and Cabinet, the Department of Finance and Deregulation and the Australian Electoral Commission. And I'd just like to take this opportunity to thank all the officials from those agencies for the work that they've undertaken.
I'd like to stress that the only consultations that have occurred to-date on the green paper, have been with state and territory ministers who are responsible for electoral matters and, of course, with the Electoral Authorities in the respective states and territories.
No political parties - no political parties were provided with drafts of this green paper. In my view they should make submissions responding to the issues raised in the paper, along with all other interested parties and individuals.
So what the Government is seeking now is a constructive and forward looking response to this document. From the beginning I've stated that all reform options are on the table. On - and on reading this paper I think you'll see that this is the case.
What we're looking for are considered views on key questions such as should donations to political parties and candidates be kept or banned, or should they be left as they are? Should campaign expenditure be limited? If it is, how's that to be done? What approach should we take on public funding? How can disclosure obligations be enhanced? What rules and obligations should be placed on political parties in election campaigns? And similarly what rules and obligations should apply to third parties?
And I make this point that without the regulation of third parties, or if you like, political action groups involved in the political process, any rules that are imposed on political parties alone could be undermined by the diversion of funds elsewhere.
This is a genuinely consultative exercise. Submissions, comments and views on the green paper should be lodged with the Department of Prime Minister and Cabinet by the 23 February next year.
The second green paper that I know you're aware of on broader reforms to our electoral laws will be released next year. And we're also taking this opportunity to invite anyone who's interested, to suggest issues that that second green paper should explore. And these also we're asking to be provided to the Department of Prime Minister and Cabinet by the 23 February.
To progress the issues raised in the first green paper, I can assure you that the Government will closely examine all submissions. It will certainly consult again with the states and territories. I'll also be canvassing options for reform of the political finance system with political parties, before deciding on which options will be pursued.
And I can say also that I intend to devote a lot of my time next year to getting the final model on this right. I want to get this right, so that we can ensure that Australia has an electoral system that is fit for the twenty-first century and I'm very happy to answer your questions if I can
QUESTION:
Would you anticipate the changes would be in time for the next election, or the election after that?
JOHN FAULKNER:
Oh no, absolutely Michelle. It is absolutely critical that we need significant reform before the next election.
As I said, I'm - you can see from the timetable that we've outlined that that is more than realistic and that's why I've emphasised with you that I intend to give this so much of my attention next year, particularly in the early part of the year.
QUESTION:
Do you have a view on clients like the Greenfields Foundation, the use of unions to run, you know, donation systems? What is your view about some of these groups that we don't know much about?
JOHN FAULKNER:
Well I do have personal views about these matters and you can probably - it wouldn't be too hard to check some of the public statements that I've made about these matters in the past. I mean, you raised the Greenfields Foundation which, of course, is an associated entity.
And you also raised the issue of trade unions. I've made very clear in my opening statement - and I'd like to stress this with you that we know from some international experience that it's not just enough necessarily to place certain constraints or a certain regulatory framework around registered, political parties because we often have seen the growth of third parties or political action groups or the like.
And in any serious reform, then we obviously have to address that issue and that's why I've identified that so clearly.
In relation to trade unions, we can single out trade unions, but we can single out any other type of organisation as well.
When you look at any limitations that are to apply to political party, it doesn't matt… to political parties, it doesn't really matter where the funding comes from, whether it be from individuals or businesses, or organisations, or trade unions. Obviously to have rigour and integrity in any process, constraints will need to be applied to all.
QUESTION:
Senator Faulkner, you originally hoped that this green paper would be in the public domain around the middle of the year. Obviously, that timeframe was run behind. Does that reflect a busy year or does it reflect the fact that you've had some push back from either state governments or within the organisation of the Labor Party, which like any political party could be very dramatically affected by some of the changes you're pursuing here?
JOHN FAULKNER:
I can't say it doesn't reflect a busy year, because I've had one. But what it really reflects is my intention to get this right and to do it in a consultative way. But I want to stress what that consultation means. That has been consultation with state and territory governments.
I think you might be aware that we've had the first ever dedicated meeting of ministers at the Commonwealth, State and Territory level who are responsible for electoral matters. I've indicated it's - another one of these meetings will, now immediately after today's release of the green paper, take place next week.
So, it has been a consultative process with the states and territories because harmonisation is obviously one of the very critical issue that we need to deal with. And there has been input from state and territory governments into the green paper, which I very much appreciate.
Fundamentally, the challenge here is to get this right, and it's to get it right within a reasonable framework which comes back to Michelle's earlier question; obviously I want to see significant reform, a new framework in place before the next election.
But I also want to ensure that we have a process that maximises the chances and opportunity of succeeding in these objectives and that's why I'd commend to you the sort of consultation process that I've outlined to you and that the green paper envisages.
QUESTION:
But you haven't even managed, have you, to negotiate through the Senate, these earlier, quite modest changes? That's right, it's still hanging over.
JOHN FAULKNER:
Well it…
QUESTION:
So, how on earth do you think that you can possibly get a comprehensive, radical scheme through the Senate in time for the next election?
JOHN FAULKNER:
It is true Michelle, that my - that the disclosure bill that I put forward was referred off to the Joint Standing Committee on electoral matters by the Opposition, which then of course had a majority in the Senate prior to 1 July this year. That's true.
I made a ministerial statement which I'd commend to you on this issue in the last week of the parliament which outlined my approach on that bill, which I think is a critical important - critically important piece of electoral legislation.
The bill contains a range of measures which the Government believes are a high priority. I looked seriously at the option of seeing if we could have a 1 January start-up date for that bill. I sought advice and received advice from the AEC that it would be far more preferable for us to have a 1 July 2009 start-up date for the bill, because of the complexity of some of the provisions in the bill.
I indicated in the parliament, during the last sitting week, that the Government will give this a higher legislative priority in the first part of next year. I can assure you we will do that.
Some of the measures contained in that bill, I would really strongly commend are critically important ones. For example, reducing the threshold from $10,900, which is an index figure to $1000. To banning foreign donations, another critically important measure. And, of course, tying public funding to genuine electoral expenditure, to ensure that neither parties nor candidates can make a profit out of elections. Another one of the provisions in that bill is reducing the reporting framework from 12 months to six months.
So they are important issues. It is true that the Opposition tried to defer this into the never-never. The Joint Standing Committee on electoral matters has now reported on the bill. I've made a ministerial statement on the Government's approach to this, in other words a full transparency in the parliament about how we're going to deal with this. And I am very committed to seeing a start-up date for this bill on 1 July.
To that end, I've also made public proposed government amendments in response to the Joint Standing Committee on Electoral Matters Report, which have now been circulated, so that all parties, all political parties, have absolute visibility about the government's approach, and there can be no excuses.
And I can assure you, it is the government's intention to progress those matters, they are important reforms, they are critically important reforms, and I can only hope that the Opposition has a change of mind on these issues. Perhaps they won't, but I'll certainly be arguing on that other case strongly with the minor parties, and Independent senators in the Senate, about the critical importance of passing that bill, which will enhance again, important provisions of the Commonwealth Electoral Act, particularly relating to funding and disclosure.
QUESTION:
Senator Faulkner, on another matter, has the Audit Office completed its investigation into the CMAX matter?
JOHN FAULKNER:
Well that'd be a matter you'd have to direct to the Auditor-General, you would understand that it wouldn't be a matter that the minister responsible for the Audit Office would necessarily be informed of.
QUESTION:
In terms of your responsibilities for government transparency and accountability…
JOHN FAULKNER:
Yes?
QUESTION:
…those responsibilities…
JOHN FAULKNER:
Well, not only do I have responsibilities for such matters, but I also have responsibilities for proper process, and I respect - I respect the Auditor-General's independence in these matters, I think the Auditor-General understands that I take a strong view on these things.
The expectation has been, as you know, I think this has been spoken about in the public arena, there's been an expectation that this report will come down in the early part of the New Year, but it's not appropriate for me, as a minister, to in any way engage or interfere in those processes…
QUESTION:
I was just asking whether the government has received the report yet?
JOHN FAULKNER:
Well, I don't believe that the government would expect to receive a report under Section 19 of the Audit Act, I think it would be far more likely that if you define government as departments, as agencies, that would be - that would be a matter for the Department of Prime Minister and Cabinet. But if you are asking whether I have, the answer to that question is no, but I wouldn't be - treat that as particularly significant, because I wouldn't expect to have.
QUESTION:
Senator, you said before, back on this Green paper, you said - you expressed your own view that you'd been concerned for some time that campaign fund-raising practices had the potential to degrade peoples' trust in the political process. You've also said that everything's on the table here, can you at least assure us that no change is not on the table, that there must be some kind of change, and if there isn't, what would it say about - what would you say that the community…
JOHN FAULKNER:
I am strongly committed to enhancing the integrity of electoral processes in this country, and I hope that you can see by the nature of the bill that went before the Parliament in relation to disclosure provisions, that that is a - the Political Donations Bill is a very, very clear signal, a very tangible signal, of that commitment.
And I've said a lot about these things over the years, and I certainly don't resile from my public commitments to ensuring that we do all we can to see as much transparency and accountability in our electoral processes in this country, and as much integrity in the political process in the broad, and that not only goes to the actions of governments, but of course goes to the actions of participants in the electoral processes…
QUESTION:
Can you put…
JOHN FAULKNER:
Let me just finish and say, that means parties and candidates.
QUESTION:
Can you just put some flesh on that, I mean express it now, you're talking about constraint, that means there's excesses, are you talking about the Exclusive Brethren, are you talking about the 500 Club, can you tell us now, here today, what it is that you don't like about the system as you see it, and what you would like changed?
JOHN FAULKNER:
Well, what this green paper does is outline all the areas that are on the table, all the areas that will be matters for consultation with states and territories, and others in the political process. In the broad, it goes to the issues of whether there should be limitation on expenditure, or expenditure constraints, in our political system, what restraints should apply to receipts, donations, if you like, or the funding of political parties, what consequential impact or approaches should be taken to public funding.
I've spoken also about the issue of disclosure, and disclosure provisions, and the need to enhance them considerably, which is the clear objective of the legislation that's already in the Parliament, and a fifth issue, which goes of course to the vexed one of third parties, which I outlined at some length a little earlier.
These are the critical areas that this particular green paper grapples with. It analyses the - those issues, I think comprehensively, and it's those matters that will be subject to a further consultation process, with the interested parties I've mentioned.
QUESTION:
Senator, you spoke before, you were passionate to get this bill of yours that's already before parliament through, yet the green paper, you say, everything is on the table and been discussed. Is it possible that some of the legislation you want to introduce could be changed by the green paper? You talk about disclosure of donations, yet the green paper might ban donations.
JOHN FAULKNER:
Well…
QUESTION:
I'm just wondering whether they might be a little bit inconsistent?
JOHN FAULKNER:
The point is that until changes occur in the Commonwealth Electoral Act, we have a situation now, where any donation, up to $10,900 in quantum, goes undisclosed. That is unsatisfactory. It is totally unacceptable.
We have a situation now, where you might care to make a $10,900 donation to six state branches, two territory branches, and the federal division of a political party; all of which go undisclosed. That is unsatisfactory. And it needs to be - and it should have been, it should have been changed prior to 1 July of this year.
We have a situation now where public funding can be received by a candidate or political party for electoral expenditure that hasn't occurred. That is unacceptable and needs to be, and should have been changed on 1 July this year.
The reporting periods for pub… for receipts to political parties is currently 12 months, but the way the system works it's actually a lot longer than that before there's any real visibility about what happens. It needs to have been reduced.
All those sorts of measures - including banning overseas donations - I think were critically important measures that would have enhanced the integrity, not only of our Act, but most importantly of the political processes and political systems in this country.
It should have changed. That bill should have been enacted prior to 1 July this year, so all political parties now would operate with those constraints and be significantly more disclosure; which I happen to think is in the public interest.
So, I said in answer to an earlier question - I think they're urgent, and I don't think they cut across other, other matters. They should be in place now. They should be in place at the earliest possible opportunity.
I would have liked, if it were possible, to have had a start-up date, failing for 1 July 2008, for the 1 January 2009. And I've accepted that that's not possible. But I'm going to work very hard to see it in place by 1 July 2009.
QUESTION:
[Indistinct] wouldn't you agree that the Opposition's position on that augers pretty poorly for getting constructive engagement with them on this?
JOHN FAULKNER:
Well, I've been very disappointed in the Opposition's position. I mean, I think, I think Malcolm Turnbull should try and explain to the public why these enhanced integrity measures have not been supported in the earliest possible opportunity by the Liberal Party.
But, I am taking the view that the way to progress these major reforms in the green paper is to try and involve all interested parties - the States and the Territories; the major political parties - and that means the Labor Party and the Liberal Party.
I said earlier, there'd been no involvement by the political party that I'm a member of - and I don't say it lightly - in the development of this green paper, at all. In fact, questions were asked in a Parliamentary Committee in - about this. And I suspect the Liberal's were shocked with the answers they received from Labor Party officials.
But that's - that is absolutely appropriate.
I hope, I hope, given some of the public statements that have been made - particularly by Mr Turnbull - that the Liberal Party will engage in this process, and will - and the Opposition will join the Government in ensuring that we have significant reform to our political funding system in this country.
I am going to try and achieve that.
QUESTION:
I suppose you will be telling voters about it in the next election - that they rejected…
JOHN FAULKNER:
Well, in the first instance, I am going to try and achieve that. This is serious - this is a serious objective, and I'm not going to give any excuses to any political party not to be engaged, or involved in this process.
The government…
QUESTION:
So if…
JOHN FAULKNER:
Excuse me just a moment Michelle. The Government has said it will have a, a genuine consultation process. We will have a genuine consultation process, and that obviously means that other political parties - particularly, obviously the Coalition parties - will need to be involved in that.
I accept that. That's the spirit within which I'm approaching this, and I hope that'll be reciprocated by the Liberal Party.
QUESTION:
Your immediate challenge would be presumably to get across Fielding and Xenophon for your legislation before the parliament, assuming the Greens are on side.
Have you spoken to them already? And if not, when will you be starting negotiations with them?
JOHN FAULKNER:
I have told both Senators - I have indicated to both Senator Fielding and Senator Xenophon that in the period ahead I will have discussions with them about these matters.
The point that I would make about this - and I think it's critically important - changes and reform that enhance the integrity of our electoral system are actually in the interests of political parties. That's all political parties. They're in the interests of political parties; they're in the interests of candidates. They're in the interests of governments; and they're very much in the interests of the public.
That's the spirit with which I'm approaching this. And I have no reason to believe at this stage that other political parties and representatives won't approach these reforms in the same way.
But we've also adopted an approach that I think that gives a maximum opportunity for seeing an outcome. This is why a consultative approach I think is important.
This is why having a green paper that calls for formal submission and with - that has encouraged very positively the engagement of the States and Territories for harmonisation has been so important.
And as I said, I'd very much commend that to you. It is, it is - this is an important enough issue to approach it in this way.
QUESTION:
Senator, are you comfortable with parties using incumbency to hold big fundraising dinners at which you can charge $10,000 a table, at which people effectively pay to, to be sitting next to a minister?
And have you ever attended one of those fundraising dinners?
JOHN FAULKNER:
I can't say I have attended more fundraising dinners than most people have had hot dinners, because obviously that would be a bit strange .
But I have attended a lot of fundraising functions. And it's probably hard for you to believe, I've actually been the guest speaker at quite a number of such fundraising dinners.
Let's be clear about this. I mean, you've asked an important question and it warrants a serious answer.
Political parties - all of them - should operate - and I hope they do operate - under the electoral laws as they currently stand. In the current system, as you know, political parties are required to, to raise a very substantial amount of money so they're competitive in the political process.
That doesn't only go to the issue of campaign funds, but also as you know, I think goes to the administrative costs of running political parties.
And one of the ways they do this is from the fundraising dinners that you mentioned.
And yes I have been to many of those myself over the years.
I would commend the approach to you that the Labor Party has taken, which is something that I strongly argued with my colleagues in the organisational wing of the party some time ago; that we should, given the, given our proposal to change the disclosure laws to have every donation above $1000 disclosed [at fundraising dinners], that we should ensure that, that we do that voluntarily, even if it is not an obligation.
QUESTION:
The question was regarding your comfort with these arrangements.
JOHN FAULKNER:
If I could have a situation where I didn't have to attend any more fundraising dinners for the Labor Party, I think that'd be fantastic.
Anyway - thanks very much.
Ends
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