The Liberal Party received big money from gambling and hotel interests keen to maintain the status quo on hotel rules. Present rules in Victoria allow the donations, despite caps intended to limit political funding by gambling organisations.
By AMANDA HINES
The Australian Hotels Association Victorian branch (AHA) donated close to half a million dollars to political parties in the 2012-3 financial year, with the Liberal Party receiving the lion’s share from the gambling interest group.
Party donations by the organisation totalled $440,520.00, with the largest party support going to the Liberal Party – $306,250.00 to the Victorian division and $104,000.00 to the national branch.
AHA CEO Brian Kearney, a former Victorian director of Liquor Licensing (Victoria) and CEO of the Liquor Licensing Commission, has been vocal in advocating for the rights of hotel operators to continue doing business in its current form. Mr Kearney has also held senior executive positions with the Victorian TAB.
“We support … (those) who show an empathy for our business and a willingness to consult on relevant matters,” he said.
The donations in the 2012-3 financial year are the most significant from the organisation in the past 10 years.
The AHA represents the largest pubs and hotel groups in the state, including the Woolworths-owned Australian Liquor and Hospitality Group, the largest profiteer from gambling revenue in Victoria.
Melbourne University Associate Professor Dr Joo-Cheong Tham said this type of political donation represented an “inherent weakness” in the political finance system in Victoria.
“A general contribution cap, like that found in NSW, which limits political donations from all individuals and companies, would prevent this,” Dr Tham said.
However, Mr Kearney said such caps did not work and could result in people operating outside the law. Prohibition could force more backroom deals and sidestepping of legislation.
“There’s always ways to work around it,” he said.
When asked about the role the AHA played in the political landscape for its members, Mr Kearney said the organisation was active in "issues management".
“You don’t buy a dog to bark yourself," he said.
"They join this organisation with the understanding that we will strongly represent their interests … that lessens the demand for them to do it, so they can concentrate on running their business rather than dealing with many of the issues that we deal with.
"Industry associations are not social clubs. We’re an issues management organisation.”
He said political donors should not expect an outcome from their donations. “It gets us a presence there, but it doesn’t get us outcomes.”
Anti-gambling campaigners, like PokieAct’s Paul Bendat, said he believed gambling interests held undue influence over both sides of Victorian politics.
Liberal Party state director Damien Mantach said the party always fully adhered to the Victorian Electoral Commission and Australian Electoral Commission disclosure regime.
ALP state secretary Noah Carroll said the party complied with all the electoral-donation disclosure laws.
The Greens are opposed to organisations like the AHA donating to the major parties, for fear that this could stall government decision-making on important gambling harm minimisation strategies in Victoria.
Greens Upper House MP Colleen Hartland said significant political donations from the AHA were problematic.
“This cosy relationship might lead to this lobby group exerting undue influence on the positions of the old parties in relation to gambling,” she said.
Ms Hartland also said both major parties were reticent to make changes to limit the harms of problem gambling, as this could lead to a loss of profit for gambling venues and a loss of government revenue.
The Victorian Competition and Efficiency Commission concluded that gambling addiction was a severe public health issue and estimated that gambling addiction cost Victoria between $1.5 billion and $2.8 billion each year.
This report is also published in The Age online with additional material from Richard Willingham