Unions reclaim right to make political donations to NSW Labor party

http://www.theguardian.com/world/2013/dec/18/unions-reclaim-right-make-political-donations-nsw-labor

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Unions have won the right to give the New South Wales Labor party money after the high court ruled the state's election funding laws invalid.

The move is being hailed as a win for free speech.

The laws, introduced by the O'Farrell coalition government and passed by parliament in 2012, limit donations to individuals and ban unions from paying affiliation fees to political parties.

The state's peak union body, Unions NSW, launched the challenge to serve as a test case on the concept of freedom of political expression.

On Wednesday, the high court unanimously held that sections 96D and 95G(6) of the Election Funding, Expenditure and Disclosures (EFED) Act 1981 (NSW) were contrary to the commonwealth constitution and thus invalid.

"The court held that political communication at a state level may have a federal dimension," the judgment said. "The court accepted that the EFED Act had general anti-corruption purposes.

"However, the court held that the impugned provisions were not connected to those purposes or any other legitimate end."

Unions NSW assistant secretary Mark Morey said the unanimous court decision was more than he could have hoped for.

"We were hoping for a four/two (split) – we got six judges," he said.

"This will force the O'Farrell government to rewrite the laws ... make the laws far more simple."

Morey said the definition of political communication was not clear but said the laws were targeted at union groups.

"That was one of the discussions in front of the bench," he said. "The bench itself saw that this was the targeting of one group in the community."

Morey said the laws also affected environmental groups who wanted to support parties or candidates at election time.

Free market think tank the Institute of Public Affairs (IPA) also welcomed the decision.

"The high court's decision today is a win for free speech," IPA policy director Chris Berg said.

"The IPA may disagree with trade unions and environmental groups on many issues but we are in complete agreement with them on the importance of freedom of speech."

Berg said it should be legal for trade unions, corporations, environmental groups and individuals to donate money to political parties and participate in the democratic process.

"Any laws that restrict freedom of speech are limitations on our most fundamental rights.

"Campaign finance restrictions are both a restriction on free speech and suppress democratic political participation."

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