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How Australia's cartel-like political parties drag down democracy

Date

Nicholas Reece

Labor, Liberal and the Greens – they have all contributed to the deplorable state of our politics.

<i>Illustration: Jim Pavlidis</i>

Illustration: Jim Pavlidis

In a modern democracy like Australia, political parties are the main delivery mechanism of change. But recent events suggest these vehicles for change have become incapable of changing themselves.

For the ALP it is the rejection of internal democratic reform and the failure to modernise the relationship with the union movement. For the Liberal Party it is an entrenched and embarrassing under-representation of women in its senior ranks.

Recent attempts at internal reform by the major parties have been miserable flops, as they cling to the economic and social structures of a bygone century. And the Greens are no better.

As a result, Australia suffers from the lowest levels of political party membership in the advanced world. Yet the cartel-like structure of our party-based system means they continue as viable entities. The party is over but the music keeps playing, turning Australia into a democracy without the people.

In July, Labor's national conference achieved significant policy success on several fronts and provided a political boost for Bill Shorten. But on the issue of internal democratic reform, the party once again came up short.

The conference adopted one significant change: ordinary members will now directly elect at least 150 delegates, the equivalent of one for every federal electorate, and a little more than one in three of all conference delegates.

The same conference also overwhelmingly voted down a motion to give local members at least 50 per cent of votes for Senate preselections. Another motion, to increase the vote of ordinary members in preselections for House of Representatives candidates, was put up then withdrawn.

With unions representing just 17 per cent of the workforce, Labor is trying to be the party of the future while shackled to the political economy of the 19th century.

Shorten in his campaign to become Labor leader promised party reform and gave commitments about setting a new standard for selecting ALP senators and giving members more say in preselections. Yet he was not even present on the conference floor when the matter was debated. It was a far cry from Gough Whitlam's courageous "the impotent are pure" speech to the 1967 Victorian ALP conference.

Meanwhile the Liberal Party remains chained to 19th century social arrangements, with an outrageous under-representation of women in its senior ranks.

When Sir Robert Menzies founded the Liberal Party in 1944 he created a political party that was arguably the most progressive in the world in the representation of women. Menzies established quotas, with women to take a certain number of elected organisational party positions, and these quotas exist to this day in some state branches such as Victoria.

But with the exception of John Hewson, successive Liberal leaders have failed to give due attention to advancing women in their ranks through pre-selection and promotion. Now the Liberal Party finds itself with just 19 per cent of its federal parliamentary ranks filled by women and only two women in a federal cabinet of 19. That is half the number of women in the Cabinet of Afghanistan.

Again, the answer for the Liberal Party is obvious. But the party's rejection of quotas is a triumph of school-boy debating rhetoric over evidence-based policy making. Quotas will help get more Liberal women into parliament. Quotas will help the Liberals with policy making in their party room. Quotas will help the Liberals win more votes at elections and form government more often.

But Tony Abbott is resisting calls for reform, is defiant on quotas, and will not admit to any institutional bias. In so doing he is proving to be part of the problem, not the solution. Menzies would be turning in his grave.

Finally, if you think the Greens Party are the standard bearers for internal democracy and modernity, then think again. The Greens' system for electing their party leader is steeped in more mystery than the selection of the Pope. And their party conferences are closed affairs, with the media banned from attending debates.

In most democracies, about 5 per cent of voters are party members. In Australia, the figure has dropped sharply to less than 2 per cent.

If the Australian political parties operated in a competitive market like other organisations or companies, there is no way they would survive. So how do they get away with it? The short answer is that our party political system operates a lot like a cartel. A general lack of competitive pressure means they do not feel the heat to reform. Australia's pathetic party funding and donation disclosure arrangements are further evidence of this cartel-like arrangement.

There is also an insularity to the Australian political system that means our parties often lag years behind developments in other parts of the world. In advanced democracies in Europe and North America there is a much higher awareness of what is happening in political parties in other jurisdictions, and this tends to drive reform towards best practice. The Australian political class seems unaware of Australia's wooden-spoon status when it comes to party membership, or that most parties on both the left and right give their members a much bigger say in decision-making.

The paradox of power makes change hard: those with power simply won't agree to a change in arrangements that will diminish their power. And there is no equivalent of the ACCC to demand change to the structure of this system.

The jungle drums for change are beating. But they will need to beat louder still – both internally among party members and externally with voters – if anything is going to change.

Liberal Party strategists know one reason they underperform with women voters is the lack of women in their parliamentary ranks. And Labor Party leaders know they need to cauterise the damage from the trade unions royal commission by modernising the linkages across the labour movement.

Just don't hold your breath waiting for it to happen.

Nicholas Reece is a principal fellow at Melbourne University and a former Victorian secretary of the ALP and policy adviser to Julia Gillard, Steve Bracks and John Brumby.

45 comments so far

  • You are right about the cartel like behaviour between the major parties upon the matter of politician entitlements and donations disclosure, particularly the use of front organizations to anonymously funnel funds into the party, but union over-representation or lack of female representation in a political party is the least of the major parties problems. I would suggest a lack of vision or narrative to be a far more serious vacuum within the major political parties and has been the situation since Paul Keating was PM.

    Commenter
    Shane From Melbourne
    Date and time
    August 10, 2015, 12:46AM
    • G'day Shane From Melbourne.
      Nicholas Reece - thank you.
      At it's most basic, what we are currently witnessing - with politicians gorging on the public purse and their self-serving behaviour more broadly - is nothing more than 'the Human Condition'; writ large.
      You can't stop people exploiting rules to their advantage (or exceeding the rules, if 'no-one is looking') - but, you can tighten the rules and increase punishments for miscreants.
      It is the pain of exposure and threat of punishment - that will likely make people more cautious; don't bank on any 'urge to do the right thing' - you'll likely be disappointed.

      Commenter
      Howe Synnott
      Location
      Sydney
      Date and time
      August 10, 2015, 7:10AM
    • Agree its a cartel of dumb, dumber and dumbest

      None of them have delivered any value to taxpayers over the last 2 decades

      Commenter
      keshi
      Date and time
      August 10, 2015, 8:23AM
  • I am speechless.

    Our Politicians wages are the best in the world.

    They behave like a politicians in a developing country.

    There is a drama everywhere.

    Political parties, Banks, Non profit organisations , Unions , Public sector schools , Councils.

    No Hope.

    Commenter
    Ray
    Location
    Melbourne
    Date and time
    August 10, 2015, 1:12AM
    • Only the best political parties that money can buy...

      Commenter
      Uncle Quentin
      Date and time
      August 10, 2015, 9:18AM
  • This article is spot on about the two dinosaurs, in fact it's one of the best synopsis on the subject I have seen in a mainstream media publication.

    The Liberal and Labor Parties have morphed into the LibLab Party, both components irrelevant to modern Australia, existing in a policy free zone only for the benefit of a minuscule percentage of its already extremely narrow membership base.

    The articles main argument against the Greens however, it's preselection opaqueness to main stream media belies that Party's two great achievements. The first is a remarkably successful involvement of women, the second achievement being a very democratic internal structure.

    The two dinosaurs only survive from inertia, vested interest, and the largesse of an outdated electoral system.

    Australia deserves better.

    Commenter
    Socrates
    Location
    Hawthorn
    Date and time
    August 10, 2015, 5:22AM
    • Nothing will change while their snouts are buried in the trough, Nick Xenophon could be the breath of fresh air we need.

      Commenter
      Rod
      Location
      Whyalla
      Date and time
      August 10, 2015, 7:06AM
    • I truly believe that the only hope is a new party or two that will not be bogged down with last century's baggage. One started by people that truly represent their electorate instead of being an agent in the electorate for the party, as happens now, but also tackle the coming problems with new vision.
      The existing parties are not capable of serious change and, more to the point, they don't want to.
      Of course it means not just bleating in media comments sections, but getting out and solving the problem. I suspect it is going to need someone to come along who is charismatic enough to get media attention to kick the whole thing off. I do hope it happens soon.

      Commenter
      fredog
      Location
      Bundaberg
      Date and time
      August 10, 2015, 11:29AM
  • As i migrant, I find a few things unbelievable about the political system here.

    First off, the voters of a precinct have no say on the potential candidates unless they are paid members of a political party. There's nothing remotely democratic about this process and it goes back to the era when only landowners could vote in this country. Secondly, your candidate doesn't even have to live in the area they represent. This leads to party loyalists being rewarded with "safe" seats without necessarily giving a flying hoot about the people who live there. Thirdly, this whole ridiculous preference system which allows parties to swap votes and elect candidates with fewer first preference votes than rivals. You have many very prominent and ideological politicians in this country that have never received more than 25 or 30% of the popular vote in their precincts. Those elected to office in this country are not representatives of the voters, they are representatives of an outdated political system.

    It's no surprise that any of these politicians believe they are entitled to perks that often exceed their salaries. They are the products of a system so out of touch with reality, they actually believe they are working harder than those that vote for them. They equate face time with work, sitting in endless meeting as productivity. I'm pretty sure you could flush the lot of them and we wouldn't even notice.

    Commenter
    mj
    Date and time
    August 10, 2015, 7:24AM
    • mj, I actually think it's a good thing we don't vote for candidates. This means we have to vote on policy, not personality and therefore avoid the American system.

      Your third point is a common misconception. The voters decide where their preferences go, not the parties, which is a much fairer and representative system than the first past the post system. The parties simply advise voters which way they would like them to vote. Admittedly, the senate voting system needs to be fixed, but overall, it a a fair system.

      Commenter
      WillH
      Location
      Mitcham
      Date and time
      August 10, 2015, 8:01AM

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