Federal election 2016: Nick Xenophon’s ‘mistake’ on donation comments

Nick Xenophon backtracks on claims about donors “owning” political parties, amid a probe into his party’s finances.

Senator Nick Xenophon has moved to play down comments he made about donations to political parties.

Senator Nick Xenophon has conceded he made a “mistake” and was being “too clever by half” when he said that a political party would be owned by a donor who contributed more than $100,000 to a campaign.

The Australian revealed this morning that Senator Xenophon’s eponymous party was being referred to the Australian Electoral Commission for receiving $175,000 of money from cashed-up retailer Ian Melrose in what has been accused of being a loan.

Senator Xenophon in March said he hoped to pay Mr Melrose the money back, with the figure exceeding maximum political loan allowed being $10,000.

He also has come under fire for contradicting comments he made in 2010, where he said: “If you give someone $1000, you support them; if you give them $100,000, you own them.”

The Senator said in Melbourne this morning that the money was purely a donation.

He had contrition for his statement on donations six years ago.

“I think it was a clever line at the time but perhaps too clever by half,” Senator Xenophon said.

“I make mistakes all the time but I want to put in context: this was about an individual campaign. It was a too clever by half line but I think the main thing is as long as you are transparent about the donations, as long as you can have real time disclosure about donations, that’s very important.

“When I made those comments about $100,000 donations that was in the context of being a single candidate back a number of years ago, There a 32 candidates running across the country on the Nick Xenophon team.”

Xenophon Donor and retailer Ian Melrose. Picture: Kelly Barnes

He defended his comments in March that made Mr Melrose’s donation appear to be a loan.

“What I said at the time was that it would be good, depending on how we go, to pay some of that money back. That was my personal choice it was always in the nature of a donation not a loan,” Senator Xenophon said.

“It was a donation, I make no apology for that, the situation is Ian Melrose is a loveable eccentric but he has a good heart.”

He said that the donations had no impact on his calls for a royal commission into East Timor, despite Mr Melrose being a fierce advocate of the small nation.

Mr Xenophon was in Melbourne to announce a class action would be launched to seek compensation for the business owners affected by the failed Home Insulation Program, which was introduced by the Rudd government.

So far 50 clients have joined the action and are seeking a total compensation of about $100 million.

A statement of claim will be filed by lawyers McLaughlin and Riordan.