Reform plan in limbo

A PUSH to give ALP members greater input in the party's key policy-making forum has made limited progress, amid renewed warnings Labor would continue to decline.

By InvestSMART · 4 Dec 2011

By InvestSMART ·
4 Dec 2011

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A PUSH to give ALP members greater input in the party's key policy-making forum has made limited progress, amid renewed warnings Labor would continue to decline.

A day after Julia Gillard reiterated her call that the party attract 8000 new members next year, the factions, rather than implement immediate reforms, agreed to refer to a committee the key proposal to give the rank-and-file a direct presence at the national conference.

The compromise, brokered by Ms Gillard, came after the Left faction abandoned at the last minute its proposal, developed two weeks ago, for 50 per cent of the delegates to the national conference to be elected by the rank-and-file and 50 per cent to be appointed by union bosses.

Late yesterday, it put to the Right a new proposition, in which the national executive would explore options for appointing rank-and-file delegates to the conference.

Ms Gillard said she wanted the next conference, due in three years, to include a component of delegates elected by the rank-and-file.

The Right, which has the numbers on the floor of the conference, was also set to proceed with its own reform proposals which fall short of what was recommended in the post-election review.

The review, conducted by John Faulkner, Steve Bracks and Bob Carr, warned the party would continue to decline unless it empowered the membership.

Mr Bracks warned the conference yesterday that if the party failed to adopt meaningful reforms, "hundreds more branches will collapse" and the only party members will be "pensioners and superannuation contribution beneficiaries".

Senator Faulkner said "the position of the party's dire".

The review's key recommendation was that a significant proportion of delegates to national conference be directly elected by the rank-and-file. Presently, the state branches, which are half union controlled, send delegates to the conference.

It also recommended the system of three rotating national presidents be replaced by a single president, elected by the membership, who serves the full three years and has a vote on the national executive. The conference agreed to the three-year term but the Right blocked giving the president a vote on the executive.

Earlier yesterday, the NSW Right powerbroker and ALP general-secretary, Sam Dastyari, offered to increase the 400 delegates at national conference by 150.

These 150 people would be rank-and-file members and would consist of one person from each federal electorate. The Right claimed the deal collapsed when the Left demanded there be another 150 appointed by trade unions.

Ultimately, the Right killed the idea because, a Right source said, it would have diminished the faction's influence by diluting the factional balance among delegates.

"It will put us out of business," he said. The Right was set to use its numbers last night to let the state branches keep appointing delegates to the national conference and to test in a couple of seats a US-style system of primary elections for preselecting a candidate.

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Frequently Asked Questions about this Article…

What is the ALP reform plan discussed in the article and why does it matter to everyday investors?

The article describes attempts within the Australian Labor Party (ALP) to give ordinary members more say at the national conference by electing some delegates directly. The reforms matter to everyday investors because party membership and internal reform can influence party policy direction, political stability and long-term policy predictability—factors that can affect economic and regulatory settings investors watch.

What did the post-election review by Faulkner, Bracks and Carr recommend about delegates to the ALP national conference?

The review recommended that a significant proportion of delegates to the national conference be directly elected by rank-and-file members, rather than being selected mainly by state branches (which are half union-controlled). The goal was to empower ordinary members and reverse a decline in membership and branch activity.

What compromise was reached at the conference over rank-and-file delegates?

Rather than adopting immediate changes, factions agreed to refer the key proposal—to give rank-and-file members a direct presence at the national conference—to a committee. That committee will explore options for appointing rank-and-file delegates, delaying a final decision until later.

How did the Left and Right factions differ on delegate selection, and why did a bigger change collapse?

The Left at one point proposed 50% of delegates be elected by rank-and-file and 50% appointed by unions. The Right offered a plan to add 150 rank-and-file delegates (one from each federal electorate) to the existing 400, but the idea collapsed when the Left wanted an extra 150 union-appointed spots. The Right ultimately rejected the deal because they said it would dilute factional influence among delegates.

What warnings did senior figures give about the ALP if reforms aren't adopted?

The review authors and senior figures warned that without meaningful reforms the party could continue to decline. Steve Bracks warned that 'hundreds more branches will collapse' and that membership could shrink to mainly pensioners and superannuation beneficiaries. Senator John Faulkner described the party's position as 'dire.'

What change to the ALP presidency was recommended and what was actually agreed?

The review recommended replacing the system of three rotating national presidents with a single president elected by the membership who would serve a full three-year term and have a vote on the national executive. The conference agreed to a single three-year presidential term, but the Right blocked giving that president a vote on the national executive.

Who is Sam Dastyari and what proposal did he put forward on delegate numbers?

Sam Dastyari, described in the article as an NSW Right powerbroker and ALP general-secretary, offered to increase the 400 national conference delegates by 150 rank-and-file members—one person from each federal electorate. That plan fell apart amid factional disagreements over additional union-appointed delegates.

What are the ALP’s plans for candidate preselection mentioned in the article?

The Right planned to test a US-style primary system in a couple of seats for preselecting candidates, aiming to introduce a more open preselection mechanism in some contests. The article notes this as part of the Right’s own reform proposals, which were seen as less far-reaching than the review’s recommendations.