Read The Times Australia

Daily Bulletin

Turnbull's $1.75 million donation is bad news for Australian democracy

  • Written by: Yee-Fui Ng, Lecturer, Graduate School of Business and Law, RMIT University
image

After some obfuscation, Prime Minister Malcolm Turnbull has finally revealed that he made a A$1.75 million donation to the Liberal Party in the lead-up to the 2016 federal election. Turnbull said on the ABC’s 7.30 on Wednesday:

I’ve always been prepared to put my money where my mouth is. Now, here’s the difference: I put my money into ensuring that we didn’t have a Labor government.

Labor has accused Turnbull of “buying himself an election”. Labor’s finance spokesman, Jim Chalmers, said:

I think the Australian people will be shocked by this admission – it stinks. Malcolm Turnbull had to buy his way out of trouble in the dying days of his disastrous election campaign.

So, how does Turnbull’s donation compare to others? And what does it all mean for Australian democracy?

Turnbull’s donation in context

Turnbull’s donation is the largest single donation in Australian political history.

The runners-up for this title are Wotif founder Graeme Wood, who donated $1.6 million to the Greens in 2011, and mining magnate Paul Marks, who donated $1.3 million to the Liberals in 2016.

Ahead of the 2016 election, Immigration Minister Peter Dutton donated $50,000, while Education Minister Simon Birmingham and Finance Minister Mathias Cormann donated $20,000 each. However, The Australian reports that these donations were declared incorrectly and were not personal donations, but donations their local branches collected.

Other major individual donors during the last election campaign were Wood and Duncan Turpie, a reclusive gambler, who donated $630,000 and $500,000 respectively to the Greens.

Former industry minister Ian Macfarlane, who retired at the last election, contributed almost $70,000 to the Queensland Liberal National Party. Greg Mirabella, husband of former Liberal frontbencher Sophie Mirabella, donated $35,000.

Implications for democracy

There are two competing issues about large political donations.

First, there’s the freedom of individuals to express their political preferences, including giving money to political parties they support. This includes prime ministers with a lot of money to spare. They have the freedom to bestow their largesse on their own party.

This has to be counterbalanced with the pernicious influence of money in politics. In the Liberals’ struggling campaign, $1.75 million carefully spent in marginal electorates could have been the difference between winning and losing. Indeed, the Coalition won the election with only a one-seat majority. The question is whether that $1.75 million donation made a difference to the election outcome.

The second issue involves the principle of political equality. We do not want a system where a rich person running for political office has a greater ability to get elected than a poor one.

More broadly, we don’t want individuals who can afford to give large donations to secure greater access to and influence on politicians than ordinary people have. The managing director of Transfield Services, Luca Belgiorno-Nettis, has previously likened political donations to the Latin saying do ut des: “You give in order to have given back.”

According to democratic principles, we’re entitled to equal access to political office and representation by our elected representatives.

How can we fix the system?

The best solution is to have a yearly cap on donations to each party and candidate of, say, $1,000. New South Wales has such caps, which the High Court has ruled are constitutionally valid.

With caps for each individual and corporation, we can ensure people do not have a larger voice just because they have a larger wallet.

Obviously, it is not ideal that Turnbull revealed his donation only under political pressure. The current rules don’t legally oblige him to reveal his donation until almost two years after the election, in February 2018. Like Queensland, Australia should move to real-time disclosure of donations at the federal level.

Other problems include the way donations disclosures are structured, in allowing donation-splitting and donations through associated entities. It must be hoped the parliamentary committee investigating this matter will look holistically at the system and recommend strong reforms.

The struggle for political equality has shaped Australian democracy. But it’s undermined by having a political donations system that benefits the rich at the expense of other Australians.

Catch up on what the 2015-16 donations data revealed here.

Authors: Yee-Fui Ng, Lecturer, Graduate School of Business and Law, RMIT University

Read more http://theconversation.com/turnbulls-1-75-million-donation-is-bad-news-for-australian-democracy-72358

Business News

The Rise of Digital Marketplaces in the Australian Trade Sector

For decades, the Australian trade and construction sector operated almost entirely on word-of-mouth recommendations and local community networks. Small business owners typically relied on local newspa...

Daily Bulletin - avatar Daily Bulletin

How Immigration Lawyers Can Help

Introduction Visa decisions can shape employment, family life, study plans, travel, and future residence. A small omission can lead to delay, added expense, or refusal. Immigration lawyers assess l...

Daily Bulletin - avatar Daily Bulletin

How Industrial Drying Equipment Supports Efficient Processing

Many industrial processes require moisture to be removed from compressed air, products or process materials before they move to the next stage. Excess moisture can affect equipment performance, produc...

Daily Bulletin - avatar Daily Bulletin

Practical Ways a Whiteboard Can Improve Workplace Communication

Effective communication helps teams stay organised, share ideas and keep track of important information. While digital tools are now common in many workplaces, a whiteboard continues to provide a simp...

Daily Bulletin - avatar Daily Bulletin

Designing Eco-Friendly Custom Water Bottles for Your Next Event

The Evolution of Sustainable Event Merchandise Event planning has undergone a massive transformation over the last decade. Gone are the days when organizers could hand out cheap, single use plastic...

Daily Bulletin - avatar Daily Bulletin

Why Choosing a Professional Florist Melbourne Makes Flower Delivery Impactful

Flowers have a great power to speak when humans cannot express their feelings with right words. Flowers are the best gifts when you are celebrating a birthday or welcoming a newborn child into your fa...

Daily Bulletin - avatar Daily Bulletin

The Business Case for Choosing Australian Fabricators Over Imported Alternatives

For a long time, you might have defaulted to overseas suppliers when sourcing fabricated metal components for a project. The unit price was lower on paper, and the maths seemed straightforward. That...

Daily Bulletin - avatar Daily Bulletin

Australian organisations are relying on business continuity plans built for a far more predictable world

Tariff escalations, supply chain fragility, geopolitical events, and the ongoing threat of cyber disruption have reshaped the risk environment facing Australian organisations. The problem is that ma...

Daily Bulletin - avatar Daily Bulletin

How to Rent a Car for Uber in Melbourne: What Every New Driver Needs to Know

Starting out as an Uber driver in Melbourne is not as complicated as it sounds but getting the vehicle right is where most new drivers get stuck. Uber has strict requirements around vehicle age, condi...

Daily Bulletin - avatar Daily Bulletin

The Daily Magazine

What Businesses Can Do to Make Sustainability More Practical Day to Day

Sustainability can sound like a huge corporate project, something tied to annual reports, long-term ...

The Hidden Logistics Behind a Smooth-Running Construction Site

A construction site can look chaotic from the outside. There are machines moving in different direct...

When a Temporary Work Arrangement Starts Looking More Permanent

A lot can change once someone has spent a few years working in the same place. What began as a fixed...

The Real Cost of Launching a Food, Beverage or Supplement Brand in Australia

"How much will it cost to manufacture my product?" is usually the first question a founder asks, a...

Why Aussie Car Owners Are Switching to Paint Protection Film Over Traditional Waxing

For decades, a tin of carnauba wax and a Sunday afternoon were the standard formula for keeping a ...

How Wide Should Running Shoes Be? Signs Your Shoes Are Too Narrow

Running shoes should be wide enough for the forefoot and toes to sit naturally under load, but not...

Trail Running Shoes vs Hiking Shoes: Which Is Better for Australian Trails?

Australia does not offer one neat definition of a “trail.” A weekend walk might mean a hard-packed...

Architectural Window Shading: Solutions for Triangle Blinds, Raked Glazing, and High Ceilings

Mastering Light and Privacy with Specialized Window Coverings Modern architectural de...

From Suburban Streets to Modern Events: Why Australians Still Love the Ice Cream Truck

Did you know Australia consistently ranks among the world's highest ice cream-consuming countries? ...