Media Releases

$Millions in political donations still not accounted for [1st Feb, 2005]
by Senator Andrew Murray

Australias federal and state political donations laws need to be much stronger including banning foreign donations and donations with strings attached as well as disclosure of who is behind clubs, trusts and foundations, the Australian Democrats said today prior to the release of the AEC political donations figures.

"With multi-millions in political donations still not accounted for, there is a danger of corruption," Senator Andrew Murray, the Democrats Electoral Matters spokesperson said.

"Yet in an ongoing determination to preserve the indefensible, Labor and the Coalition have voted down Democrat amendments that attempted to prohibit donations with strings attached.

"The Democrats believe foreign political donations should be banned, as they have been in other countries and donors should not be able to hide behind clubs, trusts and foundations.

"And at the same time they are professing concern at companies that hide their true owners, the major parties vote down Democrats amendments to ban foreign donations, and Democrat amendments to force the disclosure of the secret funders behind big political donations from clubs trusts and foundations.

"There are other serious questions to be asked about what pay back is given for political donations and who approves them. Both Labor and the Coalition voted against Democrat amendments requiring union members and company shareholders to approve the political donations policies of companies and unions.

"Who decided to donate and how was that decision made? Did anyone ask union members or the shareholders if political donations are a good use of their money?

"Why is it okay for unions comprised of non members of Labor to make huge political donations, and to control Labor policy and Labor preselections on the say-so of union officials?

"Why hasn't it been made a crime for political donations to come with strings attached? (Like Part 1VA of tax law there should be a general anti-avoidance provision in electoral law).

Months before the federal election, Senator Murray who sits on the Joint Standing Committee of Electoral Matters, surveyed a random sample of 57 of the top 400 corporate donors to political parties to find out whether any company had a shareholder-developed policy on corporate donations. Just seven companies responded in writing and only three of those answered the survey in part or in full.

"Not one company was prepared to provide a board policy on corporate donations. Not one company had a shareholder-approved policy on corporate donations.

"Most companies agreed that they were apolitical in their decisions to donate and had little or no vested interest in the outcome. Why they were donating large sums of shareholders money if it had no benefit?

"ASIC or ASX should be showing a regulators interest in this," Senator Murray concluded.