FORMER Newcastle lord mayor Jeff McCloy has significantly broadened his High Court challenge to the state’s electoral funding laws to seek to strike down caps on donations as well as the ban on property developers giving support to political campaigns.
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The move was described as an attack on the ‘‘whole current legislative framework’’ and the outcome of ‘‘profound’’ importance, at a hearing yesterday of experts reviewing donations laws in the wake of revelations aired at the Independent Commission Against Corruption of secret developer donations to the NSW Liberal Party’s 2011 campaign.
In an amended statement of claim filed earlier this month, Mr McCloy’s legal team is seeking that the High Court declare invalid sections of the laws that impose caps on political donations for state elections, ban ‘‘indirect’’ campaign contributions and ban property developers, tobacco and liquor interests from making donations.
Currently, donations are capped at $5000 to a party or $2000 to candidates.
When he launched the challenge, Mr McCloy admitted the McCloy Group had gifted $9975 to the Liberal Party’s campaign for the seat of Newcastle but he could not recall making the donation, which went to Luke Grant, the campaign’s media officer.
But the recently filed documents reflect Mr McCloy’s subsequent evidence to the ICAC that he, as an individual, made four further donations; $10,000 to Charlestown’s Andrew Cornwell, $10,000 to Newcastle’s Tim Owen, $10,000 to Mr Owen’s campaign manager Hugh Thomson, and $1500 to $1800 to Swansea MP Garry Edwards.
Mr Cornwell and Mr Owen were forced to quit Parliament and Mr Edwards has moved to the crossbench over the revelations they took envelopes of cash from Mr McCloy.
The documents, filed on behalf of Mr McCloy, McCloy Administration (formerly the McCloy Group) and his North Lakes property development company also say: ‘‘The plaintiffs intend to make political donations... in excess of $5000, in connection with future NSW elections, to the extent permitted by law.’’
David Bennett QC, who is appearing for Mr McCloy, addressed the panel hearing on Monday, which is considering the feasibility of the full public funding of elections and will make recommendations to the Baird government.
Mr Bennett told the hearing that ‘‘despite the dreadful circuses in ICAC’’ there was ‘‘no real case being made publicly that anyone has paid money as a bribe for the purpose of achieving a particular result’’.
He said bans on property developers were not needed to make corruption an offence ‘‘because that’s done already by the common law’’, and the bans only served to restrict an implied right to freedom of political communication.
"We are attacking the caps too and we’re attacking the indirect donations. We’re attacking all of it,’’ he said.
However, legal academics said it was unlikely the challenge to the caps would succeed.
Professor George Williams said he expected the ban would be overturned in the wake of the Unions NSW successful challenge to the ban on unions donating.
Source: Newcastle Herald