Steve Bracks and Jenny Macklin – the Labor veterans installed as administrators in the Victorian branch after an extraordinary federal intervention – have recommended the ALP ban cash payments for memberships and renewals as part of efforts to stamp out industrial-scale branch-stacking.
Labor’s national executive in June appointed Bracks and Macklin as administrators of the Victorian branch, and suspended all state committees, as the party grappled with the damaging fallout of the Adem Somyurek branch-stacking scandal.
As the first steps in their review of the branch, the two have recommended banning cash payments and the insertion of a mechanism within party rules to ensure that branch membership is comprised of “consenting and self-funding members, and that members act consistently with the values of the party”.
In a discussion paper circulated to members, Bracks and Macklin characterise those rule changes as a critical first step, and flag they will be “the first of many”.
They say they have already moved to stop non-traceable payments being made for membership applications, and imposed “interim assurance arrangements”. But the administrators warn “this is only a start to stopping these dishonest activities, and requiring traceable payments is only one element of the necessary response”.
They note there have been multiple attempts since the 1990s to stamp out branch stacking in the Labor party, “but stacking has continued, and continued to undermine the integrity and public standing of the Australian Labor party”.
Deloitte has been appointed to undertake an audit of branch members. The firm’s brief involves identifying non-bona fide members and patterns of stacking.
As well as more rigorous procedures for ensuring members are genuine, the discussion paper floats options to “stop the behaviours that sit directly behind the stacking operations, such as inducements to vote a particular way, and material assistance to vote”.
Bracks and Macklin say that one option would be creating effective and onerous penalties for providing that assistance. Another option would be targeting “particular forms of inducement and support for branch stacking”. A third option would be an enforceable code of conduct.
The paper notes that stacking needs to be considered in the context of wider preselection and power structures of the unions and the Labor party.
“We need to consider incentives and disincentives in the wider context of the party that could be used to reduce the accumulation and use of internal influence as a driver for branch stacking,” it says.
The paper says given previous attempts at stamping out stacking have failed, Labor might want to consider appointing an ombudsman to provide ongoing assurance and oversight.
The discussion paper floats a range of other potential reform options. It poses a question whether the branch should be compelled to fulfil obligations to members, like giving people voting rights, or giving people a hands-on role in policy formulation.
It also considers whether the current branch structure should be changed. It notes there is a debate within the ALP membership about whether branches should be electorate based or whether branches should be formed around specific policy interests.
Bracks and Macklin say the objective should be growing the party membership, and note Labor can learn from the recruitment practices adopted by social movements like GetUp, including, potentially, investing in dedicated personnel to create a recruitment and retention function.
The paper notes that fewer Victorians are choosing to become members, and they are paying less on average. “As a result, branch stacking has never been more affordable, while the party’s financial base has never been under so much stress”.
The intervention in the state branch was triggered by a Nine Network report that Somyurek, a rightwing powerbroker, orchestrated the payment of party memberships. Somyurek later resigned his membership of the Victorian ALP.
Somyurek rejected the allegations “made around memberships of the party” at the time and said he would be providing a “rigorous defence during any party process”.
The disgraced powerbroker resigned before he could be expelled by the party’s national executive, and he was sacked from the state ministry by the premier Daniel Andrews.
The Victorian Liberals have also been embroiled in branch stacking allegations.
Labor ratcheted up pressure on Scott Morrison to take action after fresh allegations were aired by the Nine Network about Liberal party branch stacking orchestrated by a conservative party powerbroker with links to the Victorian frontbencher Michael Sukkar and veteran MP Kevin Andrews.
Guardian Australia revealed last weekend federal electorate conference chairs in 14 Victorian seats were campaigning for a virtual state council of the Liberal party – a sortie which party insiders fear is an effort to scuttle a forensic audit of party memberships in the state.
