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Vast amounts of money potentially influencing the May 2019 Australian federal election will not be disclosed to the public

CPI, Briefing Paper, 2 February 2020

The Centre for Public Integrity, media release, 3 February 2020:

A new briefing paper released by The Centre for Public Integrity today shows that vast amounts of money potentially influencing last year’s federal election will not be disclosed to the public.

Annual returns released on Monday by the Australian Electoral Commission will only cover some donations to political parties and other participants.

The paper shows that over $1 billion, or 36% of party income, has not been disclosed since 1999.

“Donations under $14,000 will not be disclosed, much income from associated entities, party fundraising events, membership fees is likely to be hidden,” said political finance expert and director of The Centre for Public Integrity Professor Joo Cheong Tham.

“Campaign spending will not be made public. Voters will not know who spent what in key states or marginal electorates.”

“Any breaches of disclosure regulations are unlikely to be investigated, as the AEC lacks the resources and there is no National Integrity Commission.’

“We need urgent reform of our disclosure system so that donations over $1000 are disclosed in real time, spending is made public, and any breaches are properly investigated by a National Integrity Commission,” concluded Professor Tham.

Read the briefing paper here.

Morrison's cabinet reshuffle promotes Nationals MP for Page Kevin Hogan

Fifty-six year old Kevin John Hogan (left) first became the Nationals MP for Page on the NSW North Coast at the 2013 federal election.

He became the Nationals Whip in February and Deputy Speaker in the House of Representatives in March 2018.

In the eight months before the May 2019 federal election, worried he might lose his seat, Hogan briefly pretended to sit on the cross-benches while remaining a member of the parliamentary National Party, Nationals Whip and Deputy Speaker.

Not once it that period did he cast a vote that was not in support of the Coalition's proposed legislation and policy positions - including refusal to genuinely act on climate change mitigation.

Having retained the seat of Page, this week's hurried cabinet reshuffle sees him now adding the title of Assistant Minister to Deputy Prime Minister Michael McCormack to his quiverfull of positions.

* Image from the South Coast Register.

Political Donations 101: cause and effect 2019-2020

THE CAUSE: Reliance on political donations

Individuals and corporations making large or regular political donations are rarely giving money for philanthropic reasons - they usually want something in return.

Sometimes it is access to a prime minister or premier, sometimes access to a particular minister and sometimes it is a barely concealed bribe in order that the donor gets a specific outcome from a particular government.

The Guardian, 3 February 2020:

The Liberal party received $4.1m from a single donor before the 2019 election, one of the largest amounts in political history, dwarfing former leader Malcolm Turnbull’s $1.75m gift before the 2016 election.

The donations, revealed in Australian Electoral Commission disclosures published on Monday, are second only to the $83.3m donated by Mineralogy Pty Ltd to Clive Palmer’s United Australia Party.

Both major parties also took significant sums of money from the fossil fuel industry, including multinational giant Woodside, something environmentalists say explains government inaction in the “face of a rolling national emergency driven by climate change”.

The $4.1m donated to the federal Liberal party and its state branches was given in multiple instalments by Sugolena Pty Ltd, a company linked to philanthropist Isaac Wakil, who made his fortune in the clothing industry and invested heavily in property, with his wife Susan, around the Sydney suburb of Pyrmont…..

The Liberals declared $22.6m in donations Labor $18.2m. Total receipts, which include all donations regardless of the $13,800 reporting threshold, other payments, returns from financial investments and loans, amounted to $165m for the Liberals and $126m for Labor.

Australia’s weak donation disclosure system continues to mask a huge chunk of political financing. 

Analysis by the Centre for Public Integrity shows that $1bn in party income has not been disclosed between 1999 and the last reporting year, almost 36% of total party financing.

But the disclosures that have been made continue to show the significant influence of the fossil fuel industry in Australian democracy. Clive Palmer’s Mineralogy, which gave $83,681,442 to Palmer’s United Australia Party, was by far the single biggest fossil fuel donor.

An analysis by the Australian Conservation Foundation found a further $1.89m in fossil fuel donations to Australian political parties.

“This data explains why even in the face of a rolling national emergency driven by climate change and community demands for change, the government continues to defend and promote the industries that are the root cause of the problem,” ACF’s economy and democracy program manager Matt Rose said.

“Serious donations reform is needed now to make sure our political system works for the benefit of all Australian, not just those with the biggest wallets.”

The biggest fossil fuel donor to the major parties was Woodside, Australia’s biggest LNG exporter. It gave $135,400 to Labor, $136,750 to the Liberal Party and $11,190 to the Nationals. The gas industry lobby, the Australian Petroleum Production and Exploration Association (APPEA), was also a significant donor. [APPEA donated a combined total of $24,990 to the federal Liberal and Nationals parties]

Prime minister Scott Morrison recently identified gas as a key “transition” fuel for Australia’s economy, saying “we need to get the gas from under our feet”. 

He also recently struck a a $2bn deal with the New South Wales government to increase gas supply and reduce greenhouse gas emissions from the electricity sector…..

The federal Liberal party also declared two donations from Adani Mining Pty Ltd totalling $50,000….. [the Australian Electoral Commission identified a combined total of $97,300 as donations directly from Adani Mining Pty Ltd to the federal Liberal and Nationals parties]

Carmichael Rail Network, another wholly-owned subsidiary of Adani Australia, gave $50,000 to the federal Liberal party and $100,000 to the Nationals….. [my red annotations]

THE EFFECT: Requirement to fulfil the terms of the unwritten contract between a political party and its donors

Within the 8 months following the May 2019 federal election the Morrison Government acted to benefit certain of its donors in the gas industry sector.

Santos Limited which had donated a combined total of $42,723 to federal Liberal and Nationals coffers in 2017-18 went on to donate another $78,854 in 2018-19, with this result......

According to Lock The Gate Alliance on 31 January 2020:

The ‘energy deal’ announced today between NSW and Federal Governments looks designed to unleash coal seam gas drilling in north-west NSW, threatening drought-affected farmers and allowing Santos to drain 37 billion litres of groundwater.

Crucially, it will do little to bring down greenhouse gas emissions due to its reliance on dirty, polluting unconventional gas.

Media reports indicate the NSW Government has been compelled by the Commonwealth to make a commitment to supply 70PJ of gas for the east coast market in exchange for up to $2 billion in Federal funding for renewable energy and unquantified reduction incentives.

The volume of gas mentioned in the deal is similar to the amount Santos expects to produce at its proposed water-hungry Narrabri coal seam gasfield.

To facilitate the creation of one or more gasfields in north-west New South Wales the Berejiklian Coalition Government held a second hearing into the NSW Chief Scientist’s recommendations on coal seam gas in NSW on 4 February 2020.

As the Berejiklian Government failed to act on the Chief Scientist's original recommendations, this second hearing was a cause for concern......

Lock The Gate Alliance, 3 February 2020:

CSG hearing round 2 must deliver more than just hot air

The holding of a second hearing into the NSW Chief Scientist’s recommendations on coal seam gas in NSW is evidence the Berejiklian Government is not prepared to deal with the repercussions of the destructive industry, according to Lock the Gate Alliance.

The hearing, to be held tomorrow, is only happening because the Government was unable to properly answer questions about CSG at the original hearing, held in December last year.

Lock the Gate NSW coordinator Georgina Woods said it was even more crucial than ever now for the Government to answer questions about its forgotten promises on coal seam gas, given the state and federal governments look poised to sacrifice the north west following last week’s energy deal announcement.

“It was deeply troubling to watch government representatives scratch their heads when asked basic questions about their oversight of this damaging industry at the last hearing. It demonstrated an alarming lack of attention to the serious risk coal seam gas poses to groundwater in North West NSW,” Ms Woods said.

“Last week’s energy deal with Canberra has raised the very real risk that state and federal governments will run roughshod over the facts and heap political pressure on planning authorities to approve Santos’ destructive Narrabri coal seam gas proposal.

“This inquiry has shown how unready and unaware the Government is for the environmental, social and economic damage that will inflict.

“There is still time to stop Santos’ Narrabri gas project from puncturing holes in a recharge aquifer of the Great Artesian Basin, one of western New South Wales’ most precious groundwater resources. There is still time to make this important area a no-go zone for coal seam gas and safeguard the water resources of north west New South Wales.”

Ms Woods said it was clear from the last hearing that major recommendations made by the Chief Scientist had not been implemented.

“The biggest gaps include failure to provide a three-tiered environmental insurance scheme, failure to establish a standing expert committee, and failure to develop systems that can detect cumulative impacts of the industry on precious water resources,” she said.

“There are 11 expired and unused legacy coal seam gas licences languishing over the farmland, towns, and precious water resources of the drought-stricken north west that have never been through the Government’s new system for assessing areas for gas exploration.

“The NSW Government is leaving farming communities in the north west exposed to unforeseen and irreversible loss or contamination of water resources and other environmental and health impacts from the CSG industry.

“We need a reset from the Government that prioritises water security, people, and the needs of future generations and that means stopping the Narrabri gasfield.”

Brisbane Times reported on 3 February 2020 concerning the Adani Group's strategically timed donations:

On April 5, $12,500 was donated to the Liberal Party; that was four days before then-Environment Minister Melissa Price signed off on the groundwater management plans for Adani's central Queensland mine. 

Another $100,000 was donated to both parties in the month after Ms Price gave final federal approvals to the mine.

NSW Bushfires 3 Feburary 2020 Infrastructure Impact Statement

SevicesNSW is inviting residents & business premises destroyed by bushfire to register for a free cleanup of their property

Residents on the NSW North Coast and elsewhere in the state should ring ServicesNSW on 13 77 88 to take advantage of the post-bushfire cleanup offer set out in the media release below.

I strongly suggest that those eligible for this cleanup of residential or business premises register immediately, as the Morrison Government has recently demonstrated that it will repurpose bushfire recovery funding at the drop of a hat and this program might just end prematurely with little notice to bushfire victims if federal funding is reduced or terminated.

Office of the Prime Minister, media release, 30 January 2020:

The Morrison and Berejiklian Governments today announced they will share the costs on a 50:50 basis for the clean-up of residential and commercial properties destroyed by the recent bushfires in NSW.

This follows the successful approach adopted by the Commonwealth and Victorian Governments following the Black Saturday bushfires.

The cost of the NSW clean-up is expected to run into the hundreds of millions of dollars, though a definitive number cannot be settled until the fires have ceased and sites are assessed.

As part of recovery efforts the NSW Government has also selected Laing O’Rourke Australia as the lead contractor to undertake the clean-up.

Prime Minister Scott Morrison, NSW Premier Gladys Berejiklian, Commonwealth Treasurer Josh Frydenberg, NSW Deputy Premier and Minister responsible for Disaster Recovery John Barilaro, Commonwealth Minister for Natural Disaster and Emergency Management David Littleproud and NSW Treasurer Dominic Perrottet said the funding agreement would give people more certainty as the recovery process continues.

“This is an important step to get the clean-up and rebuilding process moving to help people get back on their feet,” the Prime Minister said.

“We know many people are still battling these blazes but where the fire-front has passed we’re deploying $2 billion through our National Bushfire Recovery Agency to help people rebuild their homes and communities.”

“The destruction caused by these fires is unprecedented and the process of recovery and rebuilding will take time, but I want people to know, we will be with them every step of the way,” the Premier said.

“Government is picking up the bill for the clean-up, at no cost to owners, so if you’re uninsured, this is one less thing to worry about and if you are insured, it means you will be able to use every dollar of your policy to rebuild.”

Treasurer Frydenberg said the speed at which agreement was reached between the Commonwealth and the NSW government was not only a testament to the working relationship between the two levels of government but that of the National Bushfire Recovery Agency.

“An unprecedented joint effort has and is required to assist with the recovery, rebuilding and future resilience of local communities,” Treasurer Frydenberg said.

“The National Bushfire Recovery Agency has played a key role across the board ensuring the Commonwealth’s resources are reaching the communities when and where they are needed.”

The Deputy Premier said the clean-up was a mammoth task but that he was confident the partnership with Laing O’Rourke will see properties cleared and the rebuild begin as soon as possible.

“With 2,399 homes destroyed and more than 10,000 buildings damaged or destroyed all up, we have a long journey ahead of us,” the Deputy Premier said.

“Despite the enormity of the job, Laing O’Rourke has indicated the majority of properties will be substantially cleared by mid-year, with a focus on residential properties.

“The contractor will also be working hand in hand with Public Works Advisory to engage local suppliers and subcontractors, to keep local economies ticking over.

“Our emergency services, volunteers and our farmers have been outstanding in emergency situations these past months, and we need to be as vigilant in recovery as they have been in the face of disaster.”

Minister Littleproud said the Commonwealth would continue to step up to do whatever it takes.

"We will continue to respond to changing conditions while these fires affect communities across the country,” Minister Littleproud said.

“As the rebuilding begins, the Commonwealth will be there to make sure communities are well-resourced.”

Treasurer Perrottet said he expected all savings insurance companies may accrue as a result of the Government funded clean-up to be passed on to policy holders to help assist them in the rebuilding process.

“I know people are anxious to have their properties cleared as soon as possible which is why the NSW Government has hit the ground running with the clean-up effort,” Treasurer Perrottet said.

“Impacted owners wanting their property cleared need to call Service NSW on 13 77 88 to register their details and provide consent for access to their land.

“We are working with the new National Bushfire Recovery Agency to ensure a coordinated response to make clean-up as easy as possible for property owners.”

The NSW Government will provide regular updates to the Commonwealth on the progress of the clean-up.

Regulation, policy oversight and funding of aged care services are predominantly the role of the Australian Government - under three successive Coalition governments needs are not being met

Regulation and policy oversight of aged care services are predominantly the role of the Australian Government. It funds residential aged care, home care and home support, with state, territory and local governments also funding and/or delivering some of these services directly. However, most services are delivered by non-government providers such as private-for-profit, religious and charitable organisations.

Government subsidises a significant portion of the cost of providing aged care, but clients and residents are expected to contribute where they can and may be charged fees and payments by service providers.

In 2018-19 there were est. 3.9 million people 65 years of age or older in the Australian population.

Of these older people:

236, 213 were in permanent residential care;

64,117 had received respite care;

24,137 had received transition care or short-term restorative care;

1,072 national ATSI flexible age care program places were operational;

826,335 were receiving home support; and

131,534 were receiving home care packages. 
[Productivity Commission, REPORT ON GOVERNMENT SERVICES 2020]

That is est. 1.2 million older Australians who are receiving some form of government funded care.

Government recurrent expenditure on aged care services was $20.1 billion in the 2018-19 financial year or $4,874 per older person, with the federal government providing 98.2 per cent of the funding.

That low annual level of expenditure per person may be one of the reasons for this…..

The Sydney Morning Herald, 23 January 2020:

The time it takes for older Australians to enter a nursing home after being assessed as needing residential care has blown out almost 50 per cent in two years, while waiting times for the highest level of home care package are 34 months.

The Productivity Commission reports that the median "elapsed time" between getting approval from an aged care assessment team (ACAT) and going to a nursing home was 152 days in 2018-19. This is up from 121 days in 2017-18 and 105 days in 2016-17.

In New South Wales, the median wait time was 143 days in 2018-19 and 124 days in Victoria. Across Australia, almost 42 per cent of older people entered a nursing home within three months of getting ACAT approval. Almost 60 per cent of people entered a nursing home within nine months.

The Productivity Commission explained the waiting time was influenced by the availability of places as well as an older person's "preference to stay at home for as long as possible". The commission noted people may choose to try to access formal help at home or more family help, instead of taking up a nursing home place.

It said there may also be delays if people sold their family home before going into residential care.

The Productivity Commission's annual report on government services follows the aged care royal commission's recent scathing assessment of the sector. In its interim report, the royal commission slammed the aged care system as "sad and shocking", "diminish[ing] Australia as a nation". It also comes amid pleas from the aged care sector for $1.3 billion in urgent financial assistance to keep nursing homes open around the country.

The Productivity Commission's report, released today, said the median time between ACAT approval and the offer of a home care package ranged from seven months for a level one package, to 34 months for a level four (highest needs) package in 2018-19.

The commission said there was no comparable data on home care package "elapsed times" for previous years, due to a change to the approval process in 2017. Federal government data released before Christmas showed more than 112,000 people were waiting for home care. The royal commission singled out the home care wait list for urgent attention last October, noting "many people die waiting".

According to the Productivity Commission, in 2018, 84.4 per cent of those who received a formal aged care service in the home over the previous six months said they were satisfied with the quality of help they received. This was down from 89.2 per cent in 2015.

The report also found that 34 per cent of people over 65 who live at home and were classified as "in need of assistance" said their needs were not "fully met"…..