Under media questioning, the Rudd Government has now admitted that its much-ballyhooed campaign finance reforms have been shunted to the legislative back burner. Not only was this a backflip worthy of an Olympic-calibre political gymnast, but it reflects one of the biggest “tail-wags-dog” stories in recent Australian history.
Labor’s point man on electoral issues, Senator John Faulkner, vowed during the early days of the Rudd Government that house cleaning was high on the agenda. “Electoral reforms will definitely be in place before the next election,” he proclaimed in September 2008 when decrying the out of control “arms race” in political fund raising.
What a difference a year makes.
Queensland Labor Senator Joe Ludwig initially echoed those concerns when he replaced Senator Faulkner in that role. But once those noble sentiments began to take form of real legislative action, the puppet masters who pull Labor’s strings from behind the scenes began to get very nervous.
The monetary contribution of the trade union movement to the political fortunes of the Labor Party is truly staggering in scope. Each year, individual unions funnel millions of dollars in affiliation fees directly into the coffers of the various ALP campaign funds. And during the 2007 federal election campaign, the ACTU spent an estimated $27 million extra on its partisan “Your Rights at Work” attack ad campaign against the Coalition.
One only has to recall the proverb “he who pays the piper calls the tune” to understand why the trade unions see electoral reform as a direct threat to their political power base. Any reduction on the unions’ ability to make political donations would undermine their leverage over the ALP. So it comes as no surprise that the trade unions waged a no-holds barred campaign within Labor policy circles to scuttle the proposed electoral reform agenda.
And now the Rudd Government has suddenly changed its tune in obedience to its trade union masters. Its previous ironclad commitment to serious electoral reform before the next election has been replaced by nebulous promises that lack any details on timing or substance. When push came to shove, Labor’s high sounding reform rhetoric was flattened by the steamroller of trade union backroom deals and political bullyboy tactics. By running up the white flag in the face of trade union pressure, Kevin Rudd demonstrated that he owes the unions and as a result they own him.
During the last federal election, any de jure division between Labor’s election strategy and the ACTU campaign was an exercise in de facto fiction. This distinction-without-a-difference was demonstrated by the stark similarity between the how-to-vote cards handed out by the two organisations at polling booths throughout Australia.
Over the 18 months prior to the 2007 ballot, the trade union movement spent tens of millions on advertising and activism that attacked the Liberal Party. High-flying ACTU officials Greg Combet, Bill Shorten and Doug Cameron were parachuted into safe Labor seats in the Australian Parliament. And the campaign director of “Your Rights at Work” was rewarded with a senior position in Kevin Rudd’s prime ministerial office.
But much of the election season coordination between unions and Kevin Rudd took place behind the scenes. It would have been fascinating to be a fly on the wall of Labor’s election HQ to hear how ALP campaign director Tim Gartrell and the ACTU’s Greg Combet pooled political polling data, shared media advertising buys and coordinated their message strategy.
The current political system provides an unjust leg up for Labor and its trade union allies. And the Rudd Government’s backflip on its previous proclamations of electoral reform show how ruthlessly trade union political operators will fight to protect their unfair deep pockets advantage.
In recent years, the ALP has been wracked by political funding scandals in Queensland, West Australia and New South Wales. Yet despite the embarrassment of the Wollongong sex and bribery affair and the activities of Labor bagmen, the Rudd Government has shown itself incapable of weaning itself off the narcotic of big political contributions from outside players.
At a minimum, allowable corporate, union and third party donations should be significantly limited in amount. But why not kick the contribution habit, cold turkey? What about limiting political donations to individuals alone?
Union affiliation fees are essentially a form of donation and should be treated as such.
Limiting donations to individuals alone would level the playing field for everyone and prevent the purchase of political favours by business, trade unions and third parties alike.
Since the last election, the Coalition has driven the campaign finance reform debate and is committed to serious reform. The current system is open to abuse and manipulation and, as such, does not best serve the interests of the Australian people.
The Rudd Government must immediately make it clear that they remain committed to the campaign finance reform agenda, irrespective of the views of the unions. But don’t hold your breath.
Liberal Senator Michael Ronaldson is Shadow Special Minister of State
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