Federal government says more than a dozen breaches were administrative but lack of penalties prompts calls for ‘a big stick to sanction lobbyists’

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Not a single lobbyist has been sanctioned under the federal government’s code of conduct and transparency rules for almost three years despite more than a dozen breaches, with critics arguing the scheme is “as weak as a cup of cold milky tea”.

And in Victoria, no lobbyist has been sanctioned since the establishment of the current regulator more than a decade ago, with the state government acknowledging there is a need for reform after warnings from the anti-corruption commission.

Professional third-party lobbyists must comply with a federal code of conduct and disclose details to a transparency register, which is designed to strengthen public confidence in how politicians and their staff interact with vested interest groups.

Lobbyists who work without being listed on a register or who fail to act honestly and fairly can be investigated for breaches of conduct. This includes lobbyists who do not disclose links to foreign companies and governments.

But Guardian Australia can reveal no one involved in the 14 breaches substantiated by the federal attorney general’s department since January 2023 has been formally sanctioned.

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A departmental spokesperson said each breach was administrative in nature and “resolved through engagement between the department and relevant lobbyists”.

“In most cases where breaches are substantiated, they are administrative in nature and remediated through communication with the responsible officers within lobbying organisations,” the spokesperson said.

“There were no reported breaches referred to the secretary for consideration during the relevant period.”

Transparency International Australia’s chief executive, Clancy Moore, said federal lobbyists breaking the rules “do so with impunity”.

“Put simply, the federal lobbying code of conduct is as weak as a cup of cold milky tea,” Moore said.

“The commonwealth needs a big stick to sanction lobbyists who break the rules.”

Crossbench MPs and the Greens have flagged pushing Labor to toughen the rules in the new term of parliament. One element of the rules persistently identified as a shortcoming is that the code of conduct only covers paid third-party lobbyists and their clients. Lobbyists employed internally by corporations and interest groups are not required to sign up.

Currently about 360 lobbying organisations and more than 700 individual lobbyists are included on the transparency register. They represent a combined 2,400 clients.

More than 40% of registered lobbyists are identified former government representatives, including former staffers, former government ministers and other ex-office holders.

In Victoria, no lobbyist has been sanctioned by the state authority since the latest code of conduct was introduced by the Napthine government in 2013.

Under current rules, the only sanction available in Victoria is the removal of a lobbyist from the register.

The state’s public sector commissioner, Brigid Monagle, said six potential breaches of the lobbying code had been investigated in the past five years.

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“None of these potential breaches met the full requirements for removal under the terms of the code,” Monagle said.

“There may of course be other breaches that the commission has not been made aware of, and we encourage anyone with knowledge of a breach to make a report.”

The Centre for Public Integrity’s executive director, Catherine Williams, said Victorian regulation was not fit for purpose and regulators should have a broad range of sanctions to ensure smaller but significant breaches of the code do not go unpunished.

“Clearly, a uniform law would be optimal as it would simplify compliance for lobbying firms and individuals operating across multiple jurisdictions,” Williams said.

“Unfortunately, however, with the current regulatory patchwork across the country – and federally, a government yet to acknowledge that lobbying reform must be on the agenda – a uniform law is a very long way off.”

In October 2022, the Independent Broad-based Anti-corruption Commission (Ibac) raised concerns about potential corruption risks posed by lobbying. The Victorian government has accepted Ibac’s recommendations, in principle, and is now consulting on possible changes.

In New South Wales, six lobbyists were suspended from operating last month after failing to provide a regular update on which government officials they had met and on whose behalf.

The NSW Electoral Commission, which regulates the lobbying industry, required this information to be updated every three months. Lobbyists must update the list even if they have been inactive during this period.

There is no such requirement for lobbyists meeting with federal government officials.

Source: www.theguardian.com