Lobbying in the crosshairs
Lobbying is back in the spotlight as debate rages about how to sanction lobbyists who break conduct rules and new laws are being considered that would improve transparency around the sector.
By Neil Pharaoh and Andrew Koubaridis
There’s a lot at stake – lobbying is a billion dollar a year industry and employs 705 federally registered lobbyists. These people have access to the Federal Parliament and can influence politicians as they decide what laws to introduce or amend.
Greens and Crossbench Senators are pushing the Labor Government for serious reform and, after years of talking and not much action, there may be changes coming in this new term of Parliament. Independent Senator David Pocock has a bill that would force lobbyists to give quarterly updates on their activities, including revealing which MPs and senior advisers they have spoken to, while Greens leader Larissa Waters has indicated she will use the party’s balance of power status in the Upper House to strengthen the federal lobbyist register and improve rules on access to ministers and government department leaders.
At the same time, there is scrutiny over the effectiveness of the rules that are currently in place.
No lobbyist has been sanctioned under the federal government’s code of conduct and transparency rules despite 14 breaches and The Centre for Public Integrity is also pushing for changes to make the lobbying sector more transparent and in a recent report found Australia’s lobbying rules as having too many loopholes with limited integrity and enforcement.
But what does all this mean? And why is it important for the not-for-profit sector?
Lobbying can be largely divided into two categories: In-house lobbying, where it is clearly obvious who you are campaigning for (your employer) and what you are campaigning about (your company/business). The second category is paid lobbyists who are an outsourced arrangement.
The limited transparency is one of the issues NFPs should be aware of in an outsourcing arrangement.
Lobbying firms continue to play both sides of the argument, with no mandatory disclosures to clients and no real regulations forcing lobbying firms to have strict “walls” between clients. A quick glance at the Federal (or any state) lobbying register shows a number of lobbying firms who play both sides of the argument – property developers and homelessness providers are represented by the same firm, or fossil fuel companies and environment NGOs by the same lobbying firm. Mandatory disclosures are a minimum here, but there needs to be longer discussion that ensures that lobbyists can’t be internally conflicted based on who pays the most money.
NFP, boards and funders are often in the dark about what's being done, who's been spoken to, and whether it's strategic or performative. This can make it difficult to track whether you are getting value for money
Many lobbying firms continue to offer pro-bono work for the social purpose sector to create a halo effect for their corporate clients. In short, lobbying firms offer low-bono or pro-bono costs for social purpose organisations, but then leverage this work for the benefit of high fee-paying clients. Using not-for-profit organisations’ positive goodwill to benefit private companies, is, in my opinion, unethical and results in a deeply conflicted firm, whose values do not necessarily align with the not-for-profit or social purpose organisation.
Another issue is an over reliance on access as opposed to policy; they don’t help NFPs develop policy and help build the internal capacity of a NFP that will help it navigate the inevitable funding and political changes they will encounter. A lobbyist won’t be interested in enacting genuine change for NFPs – they're transactional by nature, as opposed to developing systemic change.
Finally, NFPs and social sector organisations need to consider the impact of being a “client” on the register. Public servants are increasingly cautious and actively checking lobbying registers before awarding tenders and grants – being on the register could actually hinder your tender or proposal, or at least ensure it receives more scrutiny than necessary. Media is more attentive to the issue facing the sector also, and if your chosen lobbying firm is caught in a messy situation, you could potentially become collateral damage.
So, what can you do about it?
First things first, check each State and Territory and Federal register and see if you are listed. Some registers are indefinite, which means if you use a lobbying firm once, you are on it for life. Others have a time period for disclosure, and some not-for-profits we talk to do not even know the firm that has added them to the register.
Secondly, consider if you need a lobbying firm. Our belief is that not-for-profit organisations and social purpose organisations have a great story to tell, and if given the right tools, do not need to engage lobbyists. Consider your internal skills and ability, networks and opportunities – and as always, balance the benefits versus the costs. Even a low-bono or pro-bono lobbying firm working for you may do more harm than good. Lobbyists usually don’t reflect NFP values or community voice and don't necessarily have sector fluency and understanding of what's happening in the not for profit space.
Without either major party backing in lobbying reforms, it’s unclear what changes will eventuate in this term of Parliament. But the issue is on the radar of the Crossbench and Greens who are determined to make progress, and stories are appearing in the national media more regularly mean this issue isn’t going to go away. Whether there is reform or not, NFPs should take a moment to consider if using a lobbyist aligns with their values and offers the best chance to make lasting change
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