'Now or never' says Labor on political donation reform

Victorian MPs face a now-or-never decision on political donations next month, with special minister for state Gavin Jennings warning Labor will not bring back its proposed reform if it is voted down.

In an interview with The Age, Mr Jennings confirmed he would propose substantial amendments to his donations legislation to secure crucial crossbench support in the Legislative Council when the bill returns to parliament next month.

Special minister for state Gavin Jennings listens to Premier Daniel Andrews.Credit: AAP

Negotiations with minor parties including Fiona Patten’s Reason Party and the Shooters, Fishers and Farmers party were made necessary when the Coalition this month withdrew its support for the bill which it had initially supported.

The government says its Electoral Legislation Reform Bill will give Victoria the strictest and most transparent donation laws in Australia, included a total ban on foreign donations, a cap of $4000 over four years for all donors, and the requirement for real time disclosure for all donations over $1000.

Tens of millions of dollars in public funding will make up for the loss of donations revenue to parties. Mr Jennings said the reform was a response to mounting distrust of politicians and their dealings with donors.

“I just think the community has been concerned about the potential for private or exclusive interests to dictate government policy and for that reason we want to save politicians from themselves,’’ Mr Jennings said.

“We want to take politicians out of harm’s way, and to allow them to get on with their job without the perception they’re being compromised.’’

Following the government’s surprise announcement in September last year of its plan for donations reform, Labor spent months negotiating with the Liberal party in particular, but also with minor parties and others, about details of the bill.

In a bid to ensure the survival of the reform, Labor was determined to make the bill bipartisan. But after initially supporting it when tabled last month, the Coalition belatedly withdrew support citing legal advice.

Labor responded by dropping promised concessions, including the retention of existing, advantageous, arrangements for postal voting.

Both Labor and the Coalition will also suffer some financial loss with minor parties now demanding a better deal for themselves from new administrative funding provided to parties to comply with the tough new rules.

Labor is now reliant on at least one of the two votes of the Shooters, Fishers and Farmers. Shooters MP Jeff Bourman has flagged likely support but reserved his right to oppose the bill.

Jeff Bourman of the Shooters Farmers and Fishers party.Credit: Simon O'Dwyer

Asked about the future prospects for reform if his bill is defeated, Mr Jennings told The Age that he would not be going back to the drawing board.

"I can’t see it (the bill) coming back in the near future. I would be be bitterly disappointed because I know how hard it is to get to this point. I would think it would be very hard for any government to drive it this far and get to this point in the foreseeable future.

“There will be so many bruises and disappointments about this that I can’t see that any government would be incentivised or motivated to do it’’.

For its part, the Coalition says it will look at introducing its own donations reform if elected in November.

Shadow special minister for state Ryan Smith worked closely with Labor in the shaping of the bill. But he said that in end the Coalition could not support it.

“A bill that promises over $50 million to political parties while many Victorians are doing it tough seems inappropriate, even obscene."

Mr Jennings also confirmed he would make amendments to the bill to put tight restrictions around expenditure of and accounting for the new administration payments, including denying payments to renegade MPs who leave their parties after being elected as part of a party ticket.

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