Lobbying• Lobbying is the act of attempting to influence decisions made by officials in the government, most often legislators or members of regulatory agencies. Lobbying is done by many different types of people and organized groups, including individuals in the private sector, corporations, fellow legislators or government officials, or advocacy groups (interest groups).
Different types of lobbying• Direct Lobbying: This type of lobbying involves a person telling his views to someone directly involved with developing legislation. A government employee, staff member or legislator are those with whom you should communicate your views.• Grassroots Lobbying: Grassroots lobbying communicates a particular view regarding a specific legislative proposal to the general public and persuades citizens to relay this view to their local legislators.
Other types• Paid versus free lobbying• Single issue versus multiple issue lobbying• Inside versus outside lobbying
LOBBYING IN THE USThe First Amendment of the Constitution"right of the people... to petition the government for aredress of grievances.“Senator John F. Kennedy wrote in 1956, “(Lobbyists) arein many cases expert technicians capable of examiningcomplex and difficult subjects in a clear, understandablefashion"
WHO IS A LOBBYIST• Since 1876, Congress has required all professional lobbyists to register with the Office of the Clerk of the House of Representatives.• According to the Lobbying Disclosure Act of 1995, and amendments made by the Honest Leadership and Open Government Act of 2007, a professional lobbyist is someone who: • Is paid by a client • Whose services include more than one lobbying "contact" (an elected official or members of their staff) • Whose lobbying activities constitute 20 percent or more of his time on behalf of that client during any three-month period• 12655 Lobbyists in the US in 2011
DO’s and DON’T’s FOR ALOBBYIST must file quarterly reports• Registered lobbyists detailing the contacts they made with elected officials.• They must also disclose how much money they were paid to do it.• Registered lobbyists are also required to file semi- annual reports listing any contributions made to elected officials or political campaigns.• Lobbyists are not allowed to give money or gifts directly to members of Congress
QUALITIES ANDCHARACTERISTICS OF ALOBBYIST• Conduct highly technical policy research• Throw successful dinner parties• Highly effective communicators• Have solid people skills• Strong command of various issues• A broad network of contacts• A flair for fundraising.• Expert on the legislative issues
TOP SPENDERS ON LOBBYING1. U.S. Chamber of Commerce ($857 million)2. American Medical Association ($269 million)3. General Electric ($268 million)4. Pharmaceutical Researchers and Manufacturers of America ($219 million)5. American Hospital Association ($219 million)6. AARP ($214 million)7. Blue Cross/Blue Shield ($184 million)8. National Association of Realtors ($184 million)9. Northrop Grumman ($176 million)10. Exxon Mobil ($173 million)
OTHERS• Total spending on Lobbyists in 2011 - $3.3 billion• Railroad Lobby• Some (In)famous Lobbyists - Sam Ward, Jack Abramoff• https://www.youtube.com/results?search_query=Lobbyi ng&oq=Lobbying&gs_l=youtube.3...4778.6743.0.7047.8. 220.127.116.11.0.0.0..0.0...0.0...1ac.1.• https://www.youtube.com/watch?v=Q46kxNc5BLE
LOBBYING IN THE EU• EU – less formal approach• Lobbyists in the EU fall into the three categories: • Industry associations • Non-governmental organizations (NGOs) / interest groups • Regional representations
EU KEY INSTITUIONS AND LOBBYING• European Commission – Access to lobbying groups via Directorate General. • voluntary register of lobbyists• The Council of the European Union – Main decision making body• The European Parliament – • 10-point code of conduct on lobbying. • Register of approximately 5,000 accredited lobbyists who subscribe to a specific Code of Conduct and receive special passes to access Members of the European Parliament.• 15000 Lobbyists and 2500 Lobbying organizations in Brussels
LOBBYING IN THE UK• There is presently no formal or mandatory registration process for lobbyists and consequently there are many self-employed or freelance workers who consider themselves to be lobbyists.• The United Kingdom lobbying sector is currently self- regulated by the Public Affairs Council, which registers individual lobbyists.• In 2009 the House of Commons Public Administration Select Committee recommended creation of a statutory register of lobbying companies and activities but the government rejected that recommendation.
Lobbying in Australia• Preamble‘Promote trust in the integrity of government processes andensure that contact between lobbyists and Governmentrepresentatives is conducted in accordance with publicexpectations of transparency, integrity and honesty’• Four elements1. Third party lobbyists2. Lobbying activities3. The targets of lobbying i.e. government representatives4. Post employment prohibitions 14
Third party lobbyistsThey are professional firms or individuals who conduct lobbyingon behalf of a client.Exclusions• Charitable and religious organizations• Associations - trade unions, peak bodies and interest groups• Professionals - e.g. lawyers, who only lobby occasionally and/or incidentally to their professional work• Individuals• Grassroots campaigns 15
Lobbying Activities- Principlesof Engagement• Lobbyists must make full disclosure of who they are and their clients• There is a range of unacceptable conduct that is prohibited, such as any corrupt, dishonest, illegal or threatening behavior• Lobbyists must attempt to be as accurate and truthful as is possible and must not misrepresent the nature and extent of their access to government representatives – no boasting• Lobbyists must strictly separate their lobbying activities from any personal involvement in political party activities 16
Targets of Lobbying ActivitiesGovernment representatives• Ministers• Parliamentary Secretaries• Ministerial staff• Senior public servants (Heads of Department)• Australian Defence Force (Commonwealth)Exclusions• Parliamentarians not holding executive Government• Local government (QLD includes local government) 17
Post employment prohibitions• Former Ministers and Parliamentary Secretaries who are prohibited from engaging in lobbying on any matter on which they had official dealings during their last 12 – 18 months in office• Most States, apart from Tasmania and WA, ban ministerial staff from taking up positions as lobbyists when leaving a Ministerial office for a period• WA do not include post employment provisions 18
RegistrationRegistration requirements• Provide their business registration details including, if not a publicly listed company, the names of owners, partners or major shareholders• Names and titles of employees who lobby• The names of clients for whom lobbying is undertaken• No registration = no access to government representatives• Update details at regular intervals and where there are changes to registration details 19
Maintenance of RegistersCentral agencies• Department of the Prime Minister and Cabinet• Departments of Premier and Cabinet• Public Sector Standards Commissioner (VIC and WA)Queensland – Integrity CommissionerLobbyists may be removed from the register for ‘misconduct’or providing inaccurate information 20
Breaches• Onus is on Government representatives to report breaches• Power to sanction is at the discretion of the Cabinet Secretary, Secretary of the Department of Premier and Cabinet or Public Sector Standards Commissioner• Sanctions are removal from register - therefore no ability to contact or deal with government representative 21
QUEENSLAND INTEGRITY ACT2009Administered by the Integrity Commissioner• Registration of lobbyists in set out in Part 2 of the Act and penalties for non complianceIntegrity Commissioner can• refuse to register a lobbyist and may cancel a registration – show cause notices provide natural justice• issue warnings and suspend registrationStandards of conduct include• declaring conflicts of interest and not taking action that may constitute improper influence on a government representative• onus on lobbyists to inform themselves of Queensland Government and local government policies relating to gifts 22• disclose reason of approach
NSW RECENT DEVELOPMENTSNSW ICAC findings and recommendations 2010• Lobbying of Government Officials Act 2011 - criminal offence to pay or receive a success fee for lobbying• Discretion of the Director-General to remove lobbyists from the register - if behavior has been inconsistent with general standards of ethical conduct or registration details are inaccurate• Lobbyists are ineligible for appointment to Government Boards or Committees where the appointment relates to any matter in which the lobbyists has made representation to government on in the preceding 12 months• Protocol for managing contact between the Department of Planning and Infrastructure (NSW) and registered lobbyists 23 - meeting requests and report of contact
Regulation• 1993 – Commonwealth Code of Conduct – register not public and compliance issues• 1996 – Commonwealth Code and register abolished• 2007 – Western Australia introduced Code of Conduct and register following ‘Burke and Grills’ scandal and CCC hearings• 2008 – Commonwealth Code of Conduct introduced(reviewed)• 2009 – Victoria, NSW, South Australia, and Tasmania• 2009 – Queensland Integrity Commission Act 2009 Commenced from 1 January 2010• 2010 - 2011 – NSW ICAC report and changes to NSW regulation 24
Lobbying in China• business lobbying in China is widespread and regularly influences economic policy• the economic contexts of firms and their industries affect how lobbying is carried out and consequently affects firms’ relative policy influence.Types of Lobbying• Direct Lobbying ( by means of Guanxi)• Indirect Lobbying ( by means of trade associations) 25
Features of Lobbying• Active lobbying is found in every industry, and by firms of all ownership types and nationalities.• China’s business and trade associations (of which there are over 400 nationally, and tens of thousands at the local level) and chambers of commerce, do not have much autonomy.• since associations are not very powerful, "direct lobbying predominates. Companies lobby bureaucrats throughout the government directly.“• for the most part firms lobby the bureaucracy, that is "the various parts of the ministries and commissions that are responsible for day- to-day management and regulation of industrial policy.“• most public policy lobbying does not involve clienteles relationships whereby "companies cultivate a patron and engage in an exchange relationship where the basically buy influence through that bureaucrat." 26
Variations in Lobbying• Associations are better developed in some industries than in others. E.g. Software Industry better than Steel Industry• the depth of direct contact that firms have with government varies significantly. E.g. Economically significant companies including state- owned, private and foreign-owned.• There is also variation in firms aggressiveness. Much of this is based on a firms size and technically extremely important.• Transparency also varies from industry to industry. "In some industries the policy-making process is relatively transparent; for insiders, it is relatively easy to get information.“• lobbying coalitions vary. In some industries, such as steel, the coalitions are "state-owned enterprises on one side, and private and foreign companies on the other. But Chinese consumer electronics companies and software companies are so integrated into global production networks that sometimes Chinese and foreign companies share policy preferences, and find themselves on the same side when it comes to policy." 27
Boon or Bane Niira Radia• Section 7 of the Prevention of Corruption Act, 1988, which makes it illegal for a “public servant taking gratification other than legal remuneration in respect of an official Act”• Corporate lobbying should be subject to the Right to Information (RTI) Act.• Lobbying should be regulated by curbing it into the legal limits.
IS LOBBYING ETHICAL OR UNETHICAL?Is lobbying against the law?• Necessary and healthy part of democracy• Open access to a government that is willing to listen to constituents• Sharpens debate by providing an outlet for opinions and giving government more information• Lobbying Vs. Exercising your democratic rightEssentially depends on whether you are being paid for your efforts tocommunicate with a public office holder in an attempt to change laws,regulations, contracts, programs, policies or guidelines.
LOBBYING AND ETHICAL PARAMETERSFairness• Paying a policy maker to vote in a favorable way or rewarding him or her after a vote with valuable considerations• Some lobbyists have easier access to lawmakers than others• Problem of Revolving door lobbyists-those people who once served as public officials who then go into the private sector and work to influence their former colleague• Local officials are faced with similar temptations-tickets to games or concerts, dinners in expensive restaurantsTransparency• Make sure that possible sources of influence are visible to the public.• Lobbyists register and file reports on the issues they have discussed with lawmakers• Increasing the frequency of reporting and the number and variety of organizations that qualify as lobbyists.• Access to lawmakers appointment books so that the public can see who they met with and what they discussed
LOBBYING AND ETHICS• “Earmarks”- Provisions benefiting particular industries or organizations that lawmakers insert into appropriations bills, often at the behest of lobbyists who have made significant campaign contributions.• Increasing transparency by requiring that earmarks-and the names of their sponsors-be published online at least 24 hours before a bill comes to a voteCommon Good• Lobbyists as advocates• Just as lawyers provide the trier of fact (judge or jury) with points of view on the legal issues pertaining to a case, so do lobbyists provide local, state, and federal policymakers with points of view on public policy issues.• Lobbying is not against the law. Failing to register lobbying activities is!