This article is more than 1 year old

This article is more than 1 year old

The head of the New South Wales anti-corruption commission has warned reforms to the state’s lobbying rules are “now overdue” after the government failed to properly act on reforms proposed nine years ago.

The NSW Independent Commission Against Corruption (Icac) is currently engaged in Operation Eclipse, an examination of how the state government regulates lobbying, access and influence.

It follows a similar probe in 2010 that called for a dramatic overhaul of lobbying rules and transparency measures. Almost a decade on, only five of its 17 recommendations have been adequately implemented.

“The failure to adopt all recommendations has left open the issue of transparency in government decision-making,” the Icac chief commissioner, Peter Hall, said.

Prosecutors reluctant to take corruption cases to court, former Icac chief says Read more

“Although the commission regards the implementation of the recommendations made at that time as a step in the right direction, regulatory practice in other jurisdictions suggests that a review of lobbying practices in NSW is now overdue.”

Vested interests continue to obtain direct and regular access to the highest levels of the NSW government.

Last month, in the lead-up to the state election, Guardian Australia revealed that the mining and resources sector was meeting with NSW ministers at a rate of once a week.

The level of influence wielded by the racing industry was also exposed following the controversial decision to project horse-racing advertising on the Sydney Opera House.

NSW relies on two critical tools to give the public transparency on the activities of lobbyists: a lobbyist register, and the publication of ministerial diaries.

The behaviour of lobbyists is further governed by a code of conduct, contraventions of which can result in suspensions or placement on a public “watch list”.

Despite being vastly stronger than the federal system, NSW’s lobbyist regime still suffers from weaknesses.

The register only covers third-party lobbyists, a term for professional lobbyists who are paid to represent the interests of a corporate client. Lobbyists employed by a company directly are not required to list themselves on the register.

Mining sector met NSW ministers almost every week over four years Read more

That creates a significant regulatory gap, and unfairly targets third-party lobbyists, who are forced to comply with red tape that others can ignore.

In Queensland, third-party lobbyists are estimated to account for only 20% of all corporate lobbyists. Figures for NSW are unknown.

There is no requirement for lobbyists to disclose the details of their contacts with government, including who they lobby, how often, when, and what about.

Quick guide Political lobbying in Australia: the basics Show Hide What do lobbyists do? Lobbyists attempt to influence government policy or decisions on behalf of either a client or their own organisation. Ethical lobbying is a valuable and important element of a healthy democracy. It helps those who have a stake in government policy to convey their views and expertise. There are two broad types of lobbyists: third-party lobbyists, who are engaged as consultants; in-house lobbyists, who work directly for corporations or interest groups. Who hires lobbyists? For many Australians, lobbying conjures images of powerful corporations working to sway politicians behind the scenes. There is a truth in that. The big banks, mining and energy giants, pharmaceutical companies, casinos, Amazon, Google and Facebook all engage lobbyists. But lobbyists also work on behalf of not-for-profits and community groups, including for veterans, social workers, aged-care staff, school principals and environmental organisations. What is the lobbyist register? The lobbyist register is the public's only window into the world of lobbying. It's a publicly available online list of lobbying firms, individual lobbyists and their clients. The register was a huge step forward when it was introduced in 2008, but remains frustratingly opaque. It doesn't tell us who is lobbying whom, about what, or when. Compare that with the ACT, where lobbyists are required to file quarterly reports on their activities, or NSW, where ministers are required to publish their diaries. The federal register is also completely blind to the activities of in-house lobbyists. What is the lobbyist code of conduct? The code tells lobbyists how they must behave when approaching the government and is designed to maintain ethical standards. But the code is not legislated and has no real teeth. It goes largely unenforced and the punishments are weak. The worst sanction available to authorities is removing a lobbyist from the register. The US and Canada have fines or jail terms for law breaches. Who keeps an eye on lobbyists? Federally it's the prime minister's department that loosely oversees lobbying. It takes on a largely administrative role, rather than an investigative or regulatory one. Its core job is to maintain the register and communicate the code's requirements to lobbyists. It lacks independence, relies on reports of bad lobbying and rarely, if ever, takes enforcement action.

Their activities are only partially captured by the publication of ministerial diaries, which simply show formal, scheduled meetings with ministers and give a broad idea of the discussion subject. Contact with other government staff – advisers, public servants or backbenchers, for example – is not captured, nor is the specific intent of the lobbying.

Dr Yee-Fui Ng of Monash University and Professor Joo-Cheong Tham of Melbourne Law School have warned the risks of secrecy in lobbying are significant.

In a discussion paper published by Icac on Friday, they pointed to strong lobbying oversights employed in Canada and work by Guardian Australia’s Transparency Project as examples that could guide reform.

“The risks of corruption and misconduct are acute when the fact and details of direct lobbying are secret as transparency and the accountability it enables is absent,” their discussion paper said.