Wednesday, 8 March 2023

Public Administration and Planning Legislation Amendment (Control of Lobbyists) Bill 2023

Statement of compatibility

David DAVIS (Southern Metropolitan) (10:07): I lay on the table the statement of compatibility with the Charter of Human Rights and Responsibilities Act 2006:

In accordance with section 28 of the Charter of Human Rights and Responsibilities Act 2006 (the Charter), I make this statement of compatibility with respect to the Public Administration and Planning Legislation Amendment (Control of Lobbyists) Bill 2023 (the Bill).

In my opinion, the Bill, as introduced to the Legislative Council, is compatible with the human rights protected by the Charter.

David Davis MP

Second reading

David DAVIS (Southern Metropolitan) (10:08): I move:

That the bill be now read a second time.

Operation Clara, the report of the Independent Broad-based Anti-corruption Commission (IBAC) tabled in Parliament in February 2023, reveals lobbying behaviour and a cavalier disregard for the requirements and rules of both the lobbyists register and directors duties to make open and honest declarations. The revealed failings would meet the common or dictionary definition of ‘corrupt behaviour’, which is ‘having or showing a willingness to act dishonestly in return for money or personal gain’.

The report, following a detailed IBAC investigation, blows the whistle on key weaknesses in the lobbyists register maintained by the Department of Premier and Cabinet in Victoria and on governance arrangements at the Victorian Planning Authority.

The Operation Clara report:

… found that a former Victorian government minister, Theo Theophanous, improperly lobbied in favour of the proposal on behalf of –

the Australian Education City –

AEC, including by misusing his position as a member of the board of the Metropolitan Planning Authority (which later became the Victorian Planning Authority). He failed to declare a conflict of interest and to comply with a requirement to register a lobbying client. In lieu of direct payment for his lobbying, he obtained benefits from AEC and its associates in the form of donations to his daughter’s campaign for election to the Victorian Parliament.

The IBAC makes four recommendations as part of the Operation Clara report:

Recommendation 1

IBAC recommends that the Department of Premier and Cabinet amend the … Remuneration Guidelines to specify:

a. a lobbyist (as defined in the Lobbyist Code of Conduct) is ineligible for appointment to a public entity board that has functions which relate to any matter, on which the lobbyist has represented the interests of third parties in a specified period (with reference to the NSW provisions)

b. the declaration of private interests template require that the declarant indicate if they are on the lobbyists register and, if so, provide details of the clients and industries in which they have operated in the 12 months prior to nomination.

Recommendation 2

IBAC recommends that the Department of Premier and Cabinet revise the Lobbyist Code of Conduct to:

a. prohibit public entity board directors from engaging in lobbying activities on any matter that relates to the functions of the public entity

b. require that public entity board directors comply with integrity requirements, including conflict of interest provisions in relation to representations they have made prior to their appointment (with reference to the ACT provisions).

Recommendation 3

IBAC recommends that the Victorian Public Sector Commission revise the Code of Conduct for Directors to:

a. prohibit public entity board directors from engaging in lobbying activities on any matter that relates to the functions of the public entity

b. require that public entity board directors comply with integrity requirements, including conflict of interest provisions in relation to representations they have made prior to their appointment (with reference to the ACT provisions).

Recommendation 4

IBAC recommends that the Minister for Planning amend the VPA Act to specify that proceedings for a summary offence may be commenced within the period of three years after the alleged offence.

This bill ensures all four recommendations are adopted in full. Some of the recommendations could be implemented administratively but the Andrews Labor government cannot be trusted to implement the required reforms and to entrench the required changes. This bill will achieve this task of legislating and enshrining IBAC’s four recommendations.

The recommendations from Operation Clara address only one modest area of obvious weakness in Victoria’s integrity regime. However, if this bill is passed by Parliament the four critical recommendations of IBAC through Operation Clara will be implemented fully and their implementation will be beyond doubt.

The obvious weaknesses exposed in Victoria’s planning system through poor Victorian Planning Authority governance relating to multimillion-dollar planning decisions will be addressed. Corrupt and unwelcome influences on critical planning decisions will be diminished.

Labor have been in power for 20 of the last 24 years in Victoria and the risks of corruption grow with long-term entrenched governments rewarding fellow travellers and politicising the public service. The Operation Clara findings are powerful evidence of cosy relationships that work to the detriment of the people of Victoria.

New section 67B on page 3 of the bill implements IBAC’s recommendation 1, new section 67C implements recommendation 2 and new section 67D implements recommendation 3. These new sections would all be situated in the division of the Public Administration Act that deals with ‘Maintaining public sector professionalism and integrity’.

New section 32A in the Victorian Planning Authority Act 2017 on page 5 implements recommendation 4.

Never again can an individual, like former minister Theo Theophanous, be allowed to exploit his or her position on a board of governance, like the Victorian Planning Authority, failing to declare conflicts of interest, failing to make proper lobbyist declarations and corruptly soliciting donations for his daughter’s election campaign through the exploitation of his government-funded position.

Lee TARLAMIS (South-Eastern Metropolitan) (10:13): I move:

That debate on this bill be adjourned for two weeks.

Motion agreed to and debate adjourned for two weeks.