Public Relations Institute of Australia says any move to include in-house lobbyists on public register would be ‘backward’ and impractical

A peak body for lobbyists has argued attempts to force greater transparency on the sector by vastly expanding the lobbyist register is “backward thinking”, “arbitrary” and “not useful”.

The New South Wales Independent Commission Against Corruption (Icac) is currently investigating the failings of the state’s lobbyist regime as part of Operation Eclipse.

The inquiry’s counsel assisting, Nicholas Chen SC has warned NSW’s regulation of lobbying remains “well below international best practice”, partly due to a failure to act on previous Icac recommendations.

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A key issue being explored by Icac is the secrecy surrounding attempts by in-house lobbyists – those employed directly by corporations or industry bodies, rather than via third-party commercial lobbying firms. Like many jurisdictions in Australia, in-house lobbyists operating in NSW are subjected to no real transparency.

The Icac is examining whether in-house lobbyists should be included on the state’s public lobbyist register, a practice already adopted in Victoria and overseas. That would give the public some visibility on the activities of in-house lobbyists, who make up the vast majority of those attempting to influence government.

But the Public Relations Institute of Australia, a peak body that represents some lobbyists, has argued against such a change. The institute says the current regulatory system is working well and warned that, while it was generally supportive of greater transparency for the sector, the inclusion of in-house lobbyists on the register would be impractical.

“It would not be practical to have everybody there. And it can obscure things,” Annabelle Warren, speaking on behalf of the institute, said on Tuesday.

“Why do we have the lobbyist register here in NSW? The NSW lobbyist register is unequivocal in purpose. It provides transparency of representation for the slither of lobbying … that is conducted by third-party lobbyists.

“Moves to piggyback and regulate the entire activity of lobbying through a register of representatives is backward thinking. And then trying to work out how to draw a boundary line between people who might be 5% [lobbyists] or 50% [lobbyists] is arbitrary and not useful.”

The institute submitted that all third parties acting for an entity attempting to influence government – including accountants, lawyers, engineers, surveyors, investment bankers – be required to register.

“We would also quite clearly say that you can’t just half lobby,” she said. “You are either approaching government or you aren’t approaching government, once a year or once a week, and we really do urge everyone in New South Wales to work together to build a clear, consistent system that can be trusted, there are no loopholes. If you only work in something five per cent or only turn up once a year, you are not exempted from the same oversight and transparency as other players.”

Warren earlier said there was little evidence to suggest lobbying posed a corruption risk. None of the 181 corruption findings made by Icac between 2009 and 2015 had been made against lobbyists, she said. The institute wants the government to remove red tape on lobbying, promote greater access to government, and shift the reporting and regulatory burden on to the better-resourced offices of government MPs and public servants.

Icac is also exploring whether the punishments for breaching lobbyist rules are adequate. That includes whether fines for breaching the code of conduct are enough to deter misconduct.

The Grattan Institute researcher Kate Griffiths said fines can be absorbed as a simple cost of doing business. Griffiths instead said that lobbying misconduct should be punished by denying access to government, including for more minor breaches involving a failure to report on their lobbying activities.

“Access is the currency of lobbying. That’s why it’s important to have a system in place where it’s possible to remove parliamentary passes, which make it quite easy to remove access, and then return it when that condition is met,” said Griffiths.

The Grattan Institute has also advocated for greater detail to be published in NSW’s ministerial diaries, which record who is getting access to the most powerful figures in the state. The diaries should be published with greater frequency and in a more accessible format, Griffiths said, and subjected to random audits to ensure accuracy.

Griffiths also spoke of the benefits of a system that logs the contacts between lobbyists and government, which also operates in Queensland.

The lobbyist register should also be expanded beyond third-party lobbyists to include in-house lobbyists who are “repeat players”, or “those who lobby regularly”, she said.