From the Guardian · · 3m
NSW lobbying bill falls short of corruption watchdog's demands
Labor's attempt to regulate undeclared lobbyists ignores key recommendations from Icac's investigation into how developers paid Liberal operatives for political access.
In brief
Labor's attempt to regulate undeclared lobbyists ignores key recommendations from Icac's investigation into how developers paid Liberal operatives for political access. NSW Labor introduced a bill to regulate third-party lobbyists following Icac's Rosny inquiry, but it omits several key recommendations including rules…
Icac's Rosny inquiry exposed undeclared lobbyists
The Independent Commission against Corruption revealed how rightwing Liberal operatives, including Charles Perrottet, were paid two million dollars by developer Jean Nassif to advance his interests without declaring it.
Only one operative was a registered lobbyist
Of the group working for Nassif, only one was subject to rules about declaring clients and keeping records. The others had easy access to ministers through former staff connections.
The 'guns for hire' problem
Third-party lobbyists employed by specialist firms can work for clients without politicians knowing who they represent. Icac identified this as a major corruption risk requiring urgent regulation.
Labor introduces a lobbying bill
Chris Minns' government introduced legislation to clarify obligations for third-party lobbyists. The bill passed the lower house on Wednesday but may not become law before the election.
What the bill does do
It establishes the NSW Electoral Commission as regulator with power to audit compliance. It extends rules to third-party lobbyists interacting with councils, closing a gap Icac identified.
The biggest loophole: in-house lobbyists
The bill ignores in-house lobbyists employed directly by companies with titles like government relations or corporate affairs. These make up about eighty percent of people lobbying in parliament.
Government's reasoning on in-house staff
Special minister of state John Graham said registering in-house lobbyists would create unnecessary red tape because it is already clear whose interests they serve. He cited ministerial diary disclosures as sufficient.
“created unnecessary red tape given it is already clear whose interests are being served or represented”
Missing: rules for ministerial staff
The bill does not extend to lobbyists' interactions with ministerial staff like chiefs of staff. Operation Rosny showed these were important conduits to ministers and sources of influence.
Watered-down post-employment rules
The government weakened Icac's proposal for a six-month prohibition on certain public servants taking lobbying roles after leaving the bureaucracy. Icac wanted sensitive roles to require gardening leave.
Greens push for stronger reform
The Greens introduced a private member's bill implementing most of Icac's five-year-old recommendations, including in-house lobbyist registration and a four-year exclusion for some public sector employees.
Greens anti-corruption spokesperson's warning
Kobi Shetty said when industries with deep pockets get a louder voice than affected communities, public trust in democracy is eroded. She advocates for the stronger Greens proposal.
“When industries with deep pockets get a louder voice than the communities affected by their decisions, public trust in our democracy is eroded”
Expert view: a step but not enough
Geoffrey Watson, senior counsel at the Centre for Public Integrity, says the government's bill is a step forward and hopes it passes the upper house, but wishes it had been more ambitious.
The main idea
NSW Labor introduced a bill to regulate third-party lobbyists following Icac's Rosny inquiry, but it omits several key recommendations including rules for in-house lobbyists and ministerial staff.
