Public policy should be made for all Australians – not just those with the resources or connections to lobby and influence politicians. And mostly it is. But sometimes bad policy is made or good policy is dropped because powerful groups have more say and sway than they should.
Australia’s political institutions are generally robust, but many of the “risk factors” for policy capture by special interests are present in our system. Political parties are heavily reliant on major donors, money can buy access, relationships and political connections, and there’s a lack of transparency in dealings between policymakers and special interests.
A new Grattan Institute report, Who’s in the room? Access and influence in Australian politics, reveals that access and influence are heavily skewed towards the businesses and unions that have the most to gain (and lose) from public policy.
Many examples of special-interest influence over policy look contrary to the public interest: special deals for insiders (for example, James Packer’s Sydney casino), interest groups with a seat at the table in deciding how their own industry is regulated (such as pharmaceuticals pricing), and lobby groups blocking reforms that have broad support (such as climate change policy and pokies reforms).
Better checks and balances are needed. But the question of what to do about undue influence is tricky. Interests should be able to advocate for themselves, and donate money to support causes they believe in. Lobbying helps to introduce new ideas and reduce the likelihood of uninformed or damaging decisions by those in office. We propose a suite of reforms to reduce the risks of policy capture while still protecting the rights of all individuals and groups to contribute to policy discussions.
Start with transparency
Transparency isn’t a silver bullet, but it can play an important role in reducing the sway of special interests. Greater transparency means more opportunity for the public, media and the parliament itself to scrutinise the policy-making process and call out undue influence or give voice to under-represented views.
We recommend three key reforms to…
