Labor mates in lobbyland: ‘I just get paid more’

Labor insiders have no regrets about giving up their government jobs in Parliament House to become guns for hire in the lobbying trade.

With billions of dollars up for grabs, the former politicians and advisers know they can charge handsomely to help big companies gain access to mammoth federal deals.

Ex-Labor minister Alan Griffin (right), now a lobbyist, with former prime minister Kevin Rudd in 2012. It was Rudd’s government that started to tighten the screws on lobbyists.Credit: Alex Ellinghausen

One Labor figure says his lobbying work has guided the government towards better decisions and saved it from “dumb” moves that would otherwise cost it votes. And it has generated good fees.

“It’s kind of like what I used to do; I just get paid more now,” he says.

He is not alone. Advisers who used to work on policy inside the government now offer counsel to company chiefs on the outside, helping corporate Australia navigate the public service and federal cabinet.

Lobbyists admit their trade has changed since Labor came to power two years ago because companies are signing up new firms with Labor connections, in a shift that challenges older firms that thrived during nine years of Coalition rule.

Former Labor ministers including Stephen Conroy and Alan Griffin lead the ranks of those seeking influence, while Hawke government minister and powerbroker Graham Richardson combines a lobbyist position with his role as a Sky News commentator.

Stephen Conroy, chairman of TG Public Affairs.Credit: Dion Georgopoulos

There is a bipartisan aspect to the business, given that former Liberal minister Christopher Pyne has assembled a long client list, but he has done this while hiring former Labor adviser Tony Hodges to maintain ties with Labor in power.

The new generation of lobbyists also includes Ryan Liddell, who was a top adviser to Bill Shorten as opposition leader and Wayne Swan as treasurer, and Eamonn Fitzpatrick, who worked for Julia Gillard when she was prime minister.

With huge federal contracts to be won, the growth in the lobbying business has heightened a longstanding concern that insiders can negotiate deals with more regard to private than public interests.

“That’s absurd,” says one lobbyist unwilling to go on the record.

“Governments are accountable to the public for the decisions they make. Public and political interests prevail.”

But former NSW Supreme Court judge Anthony Whealy, KC, chair of the non-profit Centre for Public Integrity, says parliament is turning into a “virtual den of thieves” that delivers access in exchange for money.

“The federal lobbying system is well and truly broken,” says Whealy.

How the lobbying code works

Anyone who acts on behalf of third-party clients for the purpose of lobbying Australian government representatives is considered a lobbyist.

These “third-party lobbyists” must disclose their names and client lists to the public lobbyist register. Australian government representatives must meet only with third-party lobbyists who are registered.

The Attorney-General’s Department manages the rules and the register. Company directors and executives who lobby the government do not have to register. Ministers do not have to reveal their meetings or their diaries.

“During sitting weeks, the corridors of parliament swell with lobbyists of all persuasions seeking to make their mark. Unfortunately, they do it in a generally unregulated and unaccountable manner.

“Large corporate donors dominate the lobbying process and achieve remarkable success with scant heed to integrity.”

Labor brought far greater transparency to the lobbying sector by setting up a public register more than a decade ago to list every third-party lobbying firm and its clients, the regime that continues today.

Labor also set up the National Anti-Corruption Commission, an election pledge from Prime Minister Anthony Albanese before the last election, to set a higher standard across the public sector.

Like several other lobbyists, Eamonn Fitzpatrick has backed the argument for an expanded register of lobbyists to track who is seeking to influence government.Credit: Alex Ellinghausen

No contracts under the current government have triggered concerns like those surrounding former cabinet minister Stuart Robert, and reported by this masthead, due to his friendships with consultants who helped corporate clients win federal contracts.

Fitzpatrick says anyone tracking public policy should consider the way big consulting firms influence outcomes, as shown when PwC was caught sharing information it gained in a confidential process from the Australian Taxation Office.

“Let’s not forget that while governments around the country were tightening lobbying laws, the PwC debacle was happening,” Fitzpatrick says.

“So, governments must make sure all professional advisers interacting with the public sector and looking to achieve a commercial or policy outcome are subject to the same level of regulation.

“That has to include in-house lobbyists and other professional services firms.”

But a Senate inquiry into lobbying has led to a stalemate over reforms to the rules, with crossbench MPs and senators pushing for a broader regime that forces ministers to reveal contact with lobbyists, requires hundreds more lobbyists to disclose their work and restricts political donations.

The current rules, put in place by prime ministers Kevin Rudd and Julia Gillard, say lobbyists who work for independent firms must disclose their companies and clients on a federal register.

This does not include “in-house” executives who work for big companies or industry associations. Nor does it include company board members, who can advise a company without any disclosure on the federal lobbyist register.

‘The age of cognac and cigars in back rooms is well and truly over.’

Tony Hodges, lobbyist and former political adviser

The concerns are growing after the government pledged billions of dollars for its Future Made in Australia policy, including $22.7 billion in the May budget as well as other grants and loans for companies in critical minerals, renewable energy, battery production and broader manufacturing.

Hodges, who joined Pyne and Partners after the last election, says the government was “doing everything by the book” while being open to views from stakeholders and their lobbyists.

Hodges was previously an adviser to Labor frontbenchers including Richard Marles, now deputy prime minister, and Linda Burney, now minister for Indigenous affairs. “The age of cognac and cigars in back rooms is well and truly over,” he says.

“The government isn’t interested in that. They’re focussed on professionalism and probity, and frankly that’s good for the country.”

There is, however, a growing push for greater transparency about all aspects of the lobbying business, including the government relations executives who work in-house at big companies but do not have to list themselves on the public register of lobbyists under current rules.

Canberra lobbyist Simon Banks, who is managing director of Hawker Britton and was previously a senior adviser to several Labor leaders, backs the case for revealing the list of Parliament House pass-holders and the politicians who signed the passes.

Banks also says the regime should include corporate lobbyists as well as third-party firms such as Hawker Britton.

The managing director of Hawker Britton, Simon Banks, wants greater transparency from lobbyists.Credit: Alex Ellinghausen

National Advisory lobbyist David Quilty says the key issue is compliance and enforcement of the fundamental rule that requires all lobbyists to register, disclose their clients and only talk to government ministers and officials after revealing these details.

“That rule is a very good rule, but it needs to be enforced and complied with, so there are repercussions for those who don’t comply,” Quilty says.

Executive Counsel owner Jannette Cotterell, a lobbyist for many years, says in-house lobbyists should also be registered and there should be more disclosure.

Cotterell says a change of government usually brings an influx of new lobbyists with ties to the party in power, but she believes those who are too close to a political party may not deliver the best results.

“If your driving force is to get a political party in or out of government, you can’t possibly put your clients’ interests first,” Cotterell says. “I’ve seen this with Liberals, and now with Labor. You can’t regulate that kind of conflict – it just is.”

Others could not disagree more. “Governments are complex beasts to navigate,” says one lobbyist and former Labor adviser. Australian business is highly regulated and will always need help with that complexity, especially from those who have worked on the inside.

Provided, of course, the outcome is in the public interest.

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