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Lobbyists head for the exits as Liberal party sets new conflict of interest rules Alexander Downer case illustrates anomalies of Liberal lobbying rules
(35 minutes later)
The former Liberal minister Alexander Downer has removed himself from the federal government lobbying register because his role represented a “huge conflict of interest” with a job as state president of the Liberal party, which he took up five months ago.The former Liberal minister Alexander Downer has removed himself from the federal government lobbying register because his role represented a “huge conflict of interest” with a job as state president of the Liberal party, which he took up five months ago.
Soon after last year’s federal election Tony Abbott announced new rules for party office holders who also did explicit lobbying work.Soon after last year’s federal election Tony Abbott announced new rules for party office holders who also did explicit lobbying work.
“I am determined to ensure that as far as the new Coalition government in Canberra is concerned that not only is it clean and fair, but it’s seen to be clean and fair,” the prime minister said at the time.“I am determined to ensure that as far as the new Coalition government in Canberra is concerned that not only is it clean and fair, but it’s seen to be clean and fair,” the prime minister said at the time.
“That’s why I’m determined to ensure you can either be a powerbroker or a lobbyist but you can’t be both.” Two NSW lobbyists resigned from party positions within hours of the announcement.“That’s why I’m determined to ensure you can either be a powerbroker or a lobbyist but you can’t be both.” Two NSW lobbyists resigned from party positions within hours of the announcement.
But the new rules did not take effect until 20 March.But the new rules did not take effect until 20 March.
That meant Downer - co-owner of the lobbying firm Bespoke Approach - was free to take up the presidency of the South Australian Liberal party last October, although he stood aside as vice president of the federal party.That meant Downer - co-owner of the lobbying firm Bespoke Approach - was free to take up the presidency of the South Australian Liberal party last October, although he stood aside as vice president of the federal party.
Speaking to Guardian Australia from New York, Downer said he had, in the past couple of days, removed himself from the federal lobbyists register. He remains an owner of Bespoke Approach and he remains on the South Australian lobbyists register, but says he will undertake “no state or federal lobbying”.Speaking to Guardian Australia from New York, Downer said he had, in the past couple of days, removed himself from the federal lobbyists register. He remains an owner of Bespoke Approach and he remains on the South Australian lobbyists register, but says he will undertake “no state or federal lobbying”.
“I won’t be doing any more lobbying work. I can deal with international clients, but I can’t lobby the federal government and I won’t be doing state work either,” he said.“I won’t be doing any more lobbying work. I can deal with international clients, but I can’t lobby the federal government and I won’t be doing state work either,” he said.
The reason, he said, was that it “represents a huge conflict of interest. I have been conscious of that working with clients and sitting down with the state leader and talking about his policies.”The reason, he said, was that it “represents a huge conflict of interest. I have been conscious of that working with clients and sitting down with the state leader and talking about his policies.”
The former senator and high-profile Queensland-based lobbyist Santo Santoro has also stood down also a federal vice-president of the party.The former senator and high-profile Queensland-based lobbyist Santo Santoro has also stood down also a federal vice-president of the party.
But the new Liberal rules that take effect on Thursday would not have covered the potential for conflict of interest at the centre of Arthur Sinodinos’s troubles with the Independent Commission Against Corruption.But the new Liberal rules that take effect on Thursday would not have covered the potential for conflict of interest at the centre of Arthur Sinodinos’s troubles with the Independent Commission Against Corruption.
Sinodinos, now assistant treasurer, was for a time both the treasurer of the NSW Liberal party and a board member of Australian Water Holdings (AWH).Sinodinos, now assistant treasurer, was for a time both the treasurer of the NSW Liberal party and a board member of Australian Water Holdings (AWH).
Icac heard Sinodinos was appointed to the AWH board in 2008 ‘‘to open lines of communication with the Liberal party’’. He did communicate, meeting Barry O’Farrell’s chief of staff about the awarding of a water contract. AWH also made big donations to the Liberal party. Sinodinos insists he will be vindicated when he appears before Icac. The Coalition is standing behind him.Icac heard Sinodinos was appointed to the AWH board in 2008 ‘‘to open lines of communication with the Liberal party’’. He did communicate, meeting Barry O’Farrell’s chief of staff about the awarding of a water contract. AWH also made big donations to the Liberal party. Sinodinos insists he will be vindicated when he appears before Icac. The Coalition is standing behind him.
Sinodinos’s former position with AWH was not a formal lobbying role, and would not be covered by the prime minister’s new edict. But it obviously involved a degree of lobbying, and highlights a grey area in the new arrangements.Sinodinos’s former position with AWH was not a formal lobbying role, and would not be covered by the prime minister’s new edict. But it obviously involved a degree of lobbying, and highlights a grey area in the new arrangements.
The current president of the NSW Liberal party is Chris Downey, who is also the head of the Australian Wagering Council, which is, according to its website, the peak industry body representing the interests of the online wagering and sports betting industry, which “monitors public policy development processes including legislative and regulatory changes and engages actively with regulators and stakeholders to advocate and promote the key policy positions of the industry”.The current president of the NSW Liberal party is Chris Downey, who is also the head of the Australian Wagering Council, which is, according to its website, the peak industry body representing the interests of the online wagering and sports betting industry, which “monitors public policy development processes including legislative and regulatory changes and engages actively with regulators and stakeholders to advocate and promote the key policy positions of the industry”.
There is no suggestion Downey has done anything wrong. Party presidencies are unpaid positions, so the incumbents will almost always have other jobs.There is no suggestion Downey has done anything wrong. Party presidencies are unpaid positions, so the incumbents will almost always have other jobs.
But the potential for conflicts of interest between lobbyists and party powerbrokers have been acknowledged. Sinodinos’s situation highlights the potential for conflicts between other jobs which include lobbying roles and party powerbroker positions.But the potential for conflicts of interest between lobbyists and party powerbrokers have been acknowledged. Sinodinos’s situation highlights the potential for conflicts between other jobs which include lobbying roles and party powerbroker positions.