Archive for September 21st, 2009

Why aren’t political beneficiaries declared?

Over the last few days, the SMH has run a good series of stories on the dodgy deals that have enriched taxi licence holders like Reg Kermode.

The taxi industry is based on an anti-competitive licence system that restricts the number of cabs on the road, and delivers windfall profits to people who bought licences in the past. This is all well-known (I have complained about it before, as have several people associated with the CIS and many others.) The SMH scoop – or at least I never knew about it before – is that Kermode was given about $20 million worth of licence plates for free. It also reports that:

[The Rees government] has continued to keep secret the list of taxi plate owners who trade their licences on a market worth as much as $2.2 billion.

The SMH quite appropriately points out that Kermode is a generous donor to the NSW ALP.

But the secret licence system shows the real hole in the political disclosure system. The problem is not that $1,000 donors pose a threat to the integrity of the policymaking system, as the federal government believes. It is that information about who benefits from special government deals is often very hard to get. Unlike political donors, there is no central registry of political beneficiaries. Though their identities can – with exceptions like the taxi licence holders – generally be discovered, it often takes a lot of digging around, and in this case investigative journalism. Read the rest of this entry »