Queensland election: Clive Palmer effects a $1m boost to war chest

Clive Palmer may be able to spend an extra $1m at the Queensland poll promoting his party and attacking Labor.

Election billboard in Townsville, paid for by Clive Palmer’s Mineralogy Pty Ltd. Picture: Evan Morgan

Clive Palmer may be able to spend an extra $1m at the Queensland election to promote his political party and attack Labor, using his flagship private company to sidestep the state’s tough new expenditure caps.

Five of Mr Palmer’s private companies — including a business deregistered in 2016 — have donated $2.092m to Clive Palmer’s United Australia Party since the end of June, including a $2m donation from his flagship company Mineralogy on Wednesday.

Electoral disclosures show some of the donations are “gifts in kind”, covering Mr Palmer’s companies’ staff salaries when they are “working on the political party ­issues,” including Mineralogy ­employees.

Yellow billboards, paid for by Mineralogy, are plastered around central Brisbane and Townsville, telling voters: “Clive says … give Labor the boot.”

Under Queensland’s electoral expenditure caps, a registered political party can spend only $92,000 for each seat it is standing in, from August 1 until election day on October 31, plus an extra $58,000 for each party-endorsed candidate. So far, Mr Palmer’s party has announced candidates in 16 seats, which would allow the party and candidates to spend $2.4m if no more candidates were endorsed.

Mr Palmer has registered Mineralogy Pty Ltd — of which he is the sole director and secretary — as a “third party” with the Electoral Commission of Queensland, ­allowing it to spend an extra $1m statewide in the campaign.

If Mineralogy was classed as an “associated entity”, its spending would be included in the party’s overall expenditure cap.

Mr Palmer is the controlling force behind both Clive Palmer’s United Australia Party and Mineralogy. In the most recent iteration of the party’s constitution, lodged with federal authorities, Mr Palmer is listed as the federal president. He regularly publishes media releases on behalf of the party, appears in print, radio and TV ads on behalf of the party, and announced former rugby league player Greg Dowling as the party’s state leader last month.

Mineralogy is actively campaigning for Mr Palmer’s party and against the Palaszczuk government, as well as redeploying staff to work on its campaign.

The Australian understands Labor insiders are perplexed at how Mineralogy could be classed as a third party and are considering taking the issue up with the ECQ.

 

An ECQ spokeswoman said under the Electoral Act, a company was an associated entity only if it was controlled by the party, “operates wholly, or to a significant extent, for the benefit of the party” or operates for the dominant purpose of promoting the party in elections.

“The ECQ has no information to suggest that Mineralogy meets the above criteria, noting that Mineralogy has its own business interests outside of its political activities,” she said.

“Mineralogy registered as a third party. Should the ECQ receive information to indicate that Mineralogy should be treated as an associated entity, the ECQ will consider what action, if any, is necessary at that point in time.”

Introducing the electoral reforms in parliament this year, Labor Attorney-General Yvette D’Ath said the changes were designed to keep big money out of politics, after Mr Palmer spent more than $80m on election advertising and other costs ahead of last year’s federal election.

Federal Labor partly blamed his intervention and attacks on then-opposition leader Bill Shorten for the loss.

Mr Palmer did not respond to questions from The Australian and his spokesman was unable to get responses from him, but he said the party’s candidates would be finalised over the next week.

Mr Palmer is facing criminal charges for fraud, laid by the Australian Securities & Investments Commission, over two payments worth more than $12m made during the 2013 election campaign to the alleged benefit of his Palmer United Party.

He denies any wrongdoing.