NSW Takes step towards cleaner politics

Media Release


John Kaye MLC

Greens NSW MP

28 October 2010

NSW takes step towards cleaner politics

Negotiations between the Greens and the Keneally government have produced an election funding and donations reform package that will significantly reduce the impacts of big money on politics in this state, according to Greens NSW MP John Kaye.

Dr Kaye said: "The final package is far from perfect but it is much better than the current laws. It creates a starting point for driving money politics out of NSW.

"It can now pass through the Upper House with the combined votes of Labor and the Greens who together can form a majority.

"We spoke to the Coalition but there was little progress that could be made with parties that are expecting a flood of corporate donations for the March 2011 election.

"The outcome is a big step forward but we were unable to convince Labor on a ban on all corporate donations, smaller caps on expenditure and a more effective model for restricting third parties.

"The package provides a public election campaign funding model that will protect political diversity.

"Labor met us half way by abandoning their original tiered campaign finance model which would have destroyed new and emerging parties and locked in power for the Coalition and Labor.

"The new progressive tiered funding model and start-up money for new parties will maintain a dynamic political landscape that will allow new ideas to be tested before the voters.

"While the new public funding model will not deliver a significant increase in campaign funding for the Greens, it will allow smaller parties the opportunity to put their case to the people of NSW.

"We would have preferred more progress on key areas of corporate donations, caps and third parties but we believe that this is the best that can be achieved at this time.

"This is only a first step and there will be an on-going need for reform until corporate money politics are driven out of this state.

"The Greens will be voting for the package, recognising its imperfections. It is a big step forward over the current system that does not limit donations or expenditure.

"We expect the Coalition will be unhappy and to try to destroy progress on limiting campaign donations.

"We will not allow progress towards cleaner politics in NSW to be undermined by cheap tricks.

"The progress that has been made is a tribute to my former colleague Senatorelect Lee Rhiannon and her staff, the Director of Democracy for Sale Dr Norman Thompson and the community groups and academics who have worked hard to end the influence of money over politics," Dr Kaye said.


Key points negotiated between the Greens and Labor

Positive outcomes of negotiations

Donation caps apply across groups of companies

• Labor's proposed cap on corporate donations of $5,000 to a party and $2,000 to a candidate will now apply to a group of companies, closing a dangerous loophole.

Fairer public funding for parties and independents

• Labor abandoned its tiered funding model that discriminated against new, emerging and small parties. The new model is based on capped reimbursement for expenditure. Public funding will help end reliance on
corporate donations while providing funding to support diversity in politics

• A modest new and small parties start-up/policy development fund.

Issues where Labor would not move

Expenditure caps

• Legislative Assembly party candidates capped at spending $100,000 with independent candidates capped at $150,000. This is too high but better than no cap.

• The state-wide party spending cap is $100,000 for each of the 93 seats a party contests. The maximum cap is $9.3 million and a party cannot spend more than $50,000 in one seat. This is too high.

Third parties

• third parties can still receive donations of $2,000. This is too high but better than no cap.

• Overall third party cap of $1.05 million with a limit of $20,000 spent in one electorate. This is high, but previously there was no cap at all.