New South Wales Labor calls for more planning reforms after Guardian revelations about undisclosed political donations

This article is more than 11 months old

This article is more than 11 months old

The New South Wales opposition has warned of a “crisis of confidence” in the state’s planning system following revelations that 13 corporations hid their donations from the state’s planning authorities.

A Guardian investigation on Monday found some of Australia’s biggest companies – including Woolworths, Caltex, Origin Energy and AMP – had failed to declare sizeable donations to planning authorities while seeking to develop or approve property in the state.

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Failing to declare such donations is typically considered a criminal offence, and companies like Optus and AGL have previously been prosecuted, convicted and fined for small, inadvertent disclosure failures.

The shadow planning minister, Adam Searle, said the current planning system remained “opaque” despite reforms, and allowed “developers and other special interests” to get favourable outcomes by influencing government behind closed doors.

“Is it any wonder there is a crisis of confidence in the NSW planning system?” Searle said.

“All corporate donations to political parties should be transparent and declared in accordance with the law. Labor has gone further by proposing a ban on property developers being allowed to sit in cabinet and we know there is a need to work with the parliament on more reforms.”

“All donations to political parties made by corporations should be disclosed specifically to planning authorities when planning approvals are sought.”

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The planning minister, Rob Stokes, was approached for comment.

The NSW government has taken steps to improve donation transparency in the planning system.

The planning department now conducts annual audits of donation disclosures, and has improved the process used by applicants to disclose political donations to prevent inadvertent failings. The government has also introduced an ethics unit to improve confidence in the planning system, and reformed the composition of planning panels to reduce corruption risks.

The donations in question were declared to electoral authorities, as required. But NSW law requires they also be declared to the planning department, so that it can be fully aware of attempts at political influence by an applicant.

Former anti-corruption commissioner and NSW judge Anthony Whealy QC said the law was important because it “creates a heightened transparency around the entire planning process”.

“It identifies potential conflicts of interest for those involved in the approval process and provides a public check on the undue influence of money in relation to planning decisions,” Whealy said in a piece for the Guardian.

“But in numerous instances these important laws appear to have been ignored. The number and extent of the transgressions uncovered by the Guardian is alarming.”

Whealy said he suspected the laws were often being ignored and questioned whether the department was “falling down on its task of catching out corporations and individuals who have failed to make timely and accurate disclosure”.

Property developer donations have caused huge difficulty for both sides of politics in NSW, but particularly Labor.

NSW Labor is currently mired in an Independent Commission Against Corruption hearing into its acceptance of $100,000 in cash from property developer and Chinese billionaire Huang Xiangmo.

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The undeclared donations were found by cross-checking planning records against donations.

Woolworths appeared to have made the most omissions. It failed to declare more than $100,000 in donations to the NSW Liberals and Nationals while seeking to secure minor approvals for a supermarket at Mullumbimby, near Byron Bay.

The company has since referred itself to the planning department.

“While we fully disclosed historical political donations to the NSW Electoral Commission as required, it would appear that parts of our business which manage planning applications were regrettably not aware of these disclosures,” the company said.

The planning department said it would investigate the findings shared by the Guardian, and take action where warranted.