NSW: Iemma would ignore royal commission as he did ICAC: Oppn

AAP General News (Australia)
04-06-2008
NSW: Iemma would ignore royal commission as he did ICAC: Oppn

By Will Fisher and Eoin Blackwell

SYDNEY, April 6 AAP - The Greens have called for a royal commission to inquire into
development applications by donors to the Labor Party in NSW, but the opposition says
the government would probably ignore its conclusions.

Research by the Greens shows developers have donated $4 million to the NSW Labor Party
over the past six months, Greens MP Sylvia Hale said today.

Donations were made to the state government while developers were waiting for approval
for major development applications, Ms Hale said.

"A royal commission could determine whether undertakings were given to the developers
when Labor party officials solicited their donations and whether the donations influenced
the minister's decisions," she told reporters.

"The pattern of donations to the Labor party coinciding with favourable decisions for
the developers who made those donations cannot be ignored or explained away."

Planning Minister Frank Sartor said he was moving to reform the way decisions were made.

"We're shifting a lot of decisions out of my office and into an independent planning
commission," he told reporters.

"We believe in the responsible use of public money. There has not been one shred of
evidence that my decisions are in any way tainted."

Opposition Leader Barry O'Farrell said Premier Morris Iemma had failed to follow the
recommendations of a corruption inquiry.

Mr Iemma and Mr Sartor should have taken up the proposal by the Independent Commission
against Corruption (ICAC) that all development applications from political donors be referred
to an independent approval process, Mr O'Farrell said.

"This isn't a conflict of interest when it comes to donations and development decisions,
it's a potential corruption risk," he told reporters.

"It's a scandal that last year's ICAC report, which would have ensured that development
applications from political donors were handled at arm's length from the minister, has
been ignored by this Labor government.

The ICAC report in September, entitled "Corruption risks in NSW development approval
processes", recommended that development applications by political donors be subject to
a commission of inquiry, an expert report, or the possibility of a third-party appeal.

"If ICAC can't convince this state government to clean up the development application
process a royal commission is unlikely to do so," Mr O'Farrell said.

Mr Sartor's planning proposals announced last week would still allow him to decide
which development applications would be decided independently, he said.

"Frank Sartor and Morris Iemma's planning changes still allow the planning minister
to decide upon multi-million dollar developments proposed by donors to the Labor Party.

That's unacceptable."

The research by the Greens shows two companies, Stockland and Meriton, donated $100,000
and $150,000 to the Labor party while development applications were being considered by
Mr Sartor.

Mr Sartor said the government was facing a perception problem aggravated by the Greens.

Last month Premier Morris Iemma announced a proposal to ban all political donations
and move to a system of full public funding at the state government level.

He said the move was aimed at restoring the public's damaged perception of the political
process in NSW, following questions about ministers' relationships with developers.

AAP wjf/af/de

KEYWORD: DEVELOPERS NIGHTLEAD

2008 AAP Information Services Pty Limited (AAP) or its Licensors.