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Work of ministers after politics needs more scrutiny
Date
May 15, 2015
Sean Nicholls
Sean Nicholls
Sydney Morning Herald State Political Editor
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A loophole in the code of ministerial conduct shows why the parliamentary ethics
adviser's role needs to be rethought.
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Andrew Stoner announcement 'potentially favourable' to bank he later joined
Shortly after the shock resignation as Premier of Barry O'Farrell in April last
year, the new Premier Mike Baird dramatically announced how he was going to clea
n up the lobbying industry.
The case of the former deputy premier Andrew Stoner has exposed a problem.
Under pressure to act in the wake of the Independent Commission Against Corrupti
on's inquiry into the firm Australian Water Holdings
and the lobbyists circling
it and the government
Baird unveiled what he termed "tough new rules" for the se
ctor.
The most dramatic change in the package, though, was not directly related to the
lobbying industry.
It was the move to give ICAC the power to investigate and make findings in relat
ion to breaches of the ministerial code of conduct.
The change was a recommendation of the ICAC following its report into the action
s of former Labor ministers Eddie Obeid and Ian Macdonald in relation to a minin
g tenement issued over the Obeid? family's farm at Mount Penny in the Bylong Val
ley. Both were found by ICAC to have acted corruptly.
The change meant that ministers who commit a "substantial" breach of their code
of conduct may be found corrupt by ICAC.
While it clearly wasn't the issue that drove ICAC's recommendation for the chang
e, one significant effect was that it put real weight behind the rules for minis
ters who take often high-paying and prestigious jobs after leaving politics.
The code of conduct states that a minister who is considering a job offer while
in office or within 18 months of leaving office
that relates to their last portf
olio area must first seek ethical advice.
The advice is supplied by the parliamentary ethics adviser. The rules agreed to
by the parliament state that when the adviser becomes aware that the former mini
ster has accepted the job the parliament is informed and the advice is usually t
abled.
The code says the rules are designed "to avoid a perception" that a minister or
former minister "is or was influenced by the prospect of the employment or engag
ement" or that the minister "might make improper use of confidential information
to which he or she has or had access while in office."
It seems like a reasonable system. But the case of the former deputy premier And
rew Stoner has exposed a problem.

When Fairfax Media began seeking information about Stoner's new job as a senior
adviser to investment bank Moelis
a job that related to his former role as trade
and investment minister a loophole quickly became apparent.
The parliamentary ethics adviser
currently former clerk of the parliaments John
Evans
is sworn to secrecy about whether or not he has even been approached for a
dvice by a current or former minister
or any MP for that matter.
It meant that he was unable to confirm if Stoner had sought the advice as requir
ed by the ministerial code of conduct.
Even more absurdly, it appears that Premier Mike Baird was unable to find out fr
om Evans either.
In fact, only Stoner himself could make the fact public either himself or by all
owing Evans to do so.
There appears to be no time limit within which the adviser must be told of a job
acceptance so it could go unnoticed indefinitely.
A referral to ICAC would not be guaranteed to shed any light on the matter, eith
er.
Obviously if it moves to a public inquiry, the facts become known. But if not, t
here is a real possibility the public remains in the dark, given ICAC's propensi
ty for not revealing publicly when and why it does not decide to investigate a m
atter.
The case of Stoner's post-ministerial employment shows why the parliamentary eth
ics adviser's role needs to be rethought.
Yes, MPs and ministers who may be considering quitting politics and taking a new
job deserve some degree of confidentiality. After all, it would be unworkable i
f it became known every time they were considering taking a job.
But once the job is taken, scrutiny should be applied.
At the very least the parliamentary ethics adviser should be able to confirm whe
ther or not a former minister has abided by the rules.
After all, they are using the privilege of the experience of public office to pa
ve the way for a private sector career.
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