Labor is trying to set up a snap Senate inquiry into federal Liberal fundraising foundations at the centre of allegations the New South Wales Liberal party has breached electoral disclosure laws and to force Malcolm Turnbull’s cabinet secretary, Arthur Sinodinos, to give evidence.
As Senate opposition firms to the proposed construction industry watchdog and the government refuses to countenance substantive changes proposed by the Senate crossbench, a 2 July double dissolution appears increasingly likely.
And the final weeks of the 44th parliament are paving the way for a particularly rancorous campaign, with the Turnbull government accusing Labor of “reckless crass populism” with its pledge to hold a banking royal commission and Labor seeking to set up an inquiry into the powers of the Australian Electoral Commission to oversee so-called “associated entities” used for fundraising purposes.
In the Senate, Labor asked Sinodinos about his role as NSW finance director during the time that the NSW party is accused by the NSW Electoral Commission of “washing” property industry donations – prohibited at state level – through the federal “associated entity, the Free Enterprise Foundation”.
In evidence before the Icac, and in public statements, Sinodinos has said he did not know about the banned donations.
In the House of Representatives, Labor asked the treasurer, Scott Morrison, about donations possibly made to another fundraising body, the Millennium Forum, during his time as NSW Liberal party director.
Morrison responded furiously, saying there wasn’t “a hole dark enough that the NSW Labor party hasn’t been in it”.
“This is a party in New South Wales that wrote the book on corruption in New South Wales under Labor ... They have the gall to come into this place and throw this sort of muck around,” he said.
“Those opposite, the party of Craig Thomson, has the union got their money back yet from the brothel? I don’t think they have, Mr Speaker. This, Mr Speaker, is a bankrupt party when it comes to these matters, Mr Speaker. They’re in no position to lecture anyone.”
Labor has moved a notice of motion in the Senate to set up an inquiry by the Senate finance and public administration references committee to report by 4 May – the day after the federal budget – about “commonwealth legislative provisions relating to oversight of associated entities of political parties, with particular reference to the adequacy of the funding and disclosure regime relating to annual returns; the powers of the Australian Electoral Commission with respect to supervision of the conduct of and reporting by associated entities of political parties; and … (that) Senator Sinodinos appear before the committee to answer questions”.
The NSW Electoral Commission insists the Liberal party is obliged to declare the donations it directed through the federal party at a state level also and it is withholding $4.38m from the NSW Liberal party – money the party needs to fight the imminent federal election – to focus the party’s mind on that question. And it is standing its ground regarding criticisms against the party and former party office holders, including Sinodinos, who has had his lawyers draft an angry letter to the commission.
With all major published opinion polls showing the main parties neck and neck, or the Labor party slightly ahead of the government, the final weeks of parliament are descending into bitter debate about the Australian Building and Construction Commission, the banking industry and the claims regarding electoral funding.
The government is expected to announce an inquiry by the Australian Securities and Investment Commission and more funding for its activities (after the 2014 budget cuts) in response to Labor’s popular call for a royal commission into the string of banking scandals, but has repeatedly called Labor’s proposal “rank populism” and claimed it could not compensate victims of the scandals and would take a long time to report.
The parliamentary session began with acrimony on Monday when Labor’s deputy Senate leader, Stephen Conroy, attacked the governor general, Peter Cosgrove, for acceding to the prime minister’s request to prorogue parliament.
“What we saw is a blight on our democracy today,” he said. “We’ve seen a democratically elected decision overturned by the Queen’s representative ... We’ve seen today a governor general overturn the will of this chamber, a democratically elected chamber. That’s what we have seen, a tawdry political stunt and the governor general has demeaned his office.
“Never has the need for a republic been more evident than today.”
Turnbull said Conroy had disgraced himself.
“Well, not for the first time, Senator Conroy has disgraced himself and I look forward to the leader of the opposition publicly disassociating himself from those appalling remarks reflecting, as Senator Conroy did, on the integrity and the office of the governor general,” he told reporters on Monday.
