OECD Forum on Transparency and Integrity in Lobbying

Transcription

1 OECD Forum on Transparency and Integrity in Lobbying General Scheme of the Regulation of Lobbying Bill 2013 Department of Public Expenditure & Reform June 2013

2 Principle Principles and Objectives of Proposed Legislation Value on-going engagement between Government and society on public policy matters Objectives Show who is lobbying whom and about what Ease public concerns that lobbying behind closed doors overrides interests of the community as a whole

3 Development of Proposals (1) Public Consultation Process - Dec 2011 Submissions invited from interested parties on options for design, structure and implementation of a regulatory system for lobbying Based on OECD Principles for Transparency and Integrity in Lobbying Follow up engagement and meetings

4 Development of Proposals (2) Key Themes from Submissions Clear definition of lobbying and exemptions required Independent oversight and monitoring of regulatory system Preserve normal constituent access to political representatives Easily accessible registration system with minimum bureaucracy Consider rules relating to tax exemption - charitable organisations Support for cooling off period to address revolving door issue

5 Development of Proposals (3) Review of International Approaches Early 2012 Researched lobbying regulation in Canada, USA, Australia, New Zealand and several European countries Analysed voluntary model for EU institutions Examined proposals for regulatory regime in UK Work advised by Lyn Morrison Integrity Commissioner, Ontario, Canada Work advised and informed by Professor Gary Murphy DCU, Professor Raj Chari TCD and Dr John Hogan DIT

6 Policy Paper Seminar Development of Proposals (4) Public Seminar Later in 2012 Further Consultations Development of General Scheme of a Bill Full details of all aspects of the consultation process including submissions received and reports of stakeholder meetings at

7 Key features of the draft legislation (1) Definition of Lobbying Communication with designated public officeholders or officials by persons who are Employees or shareholders of an organisation National level officeholders (in voluntary capacity) Paid by third parties to communicate on their behalf On specific policy, legislative matters or prospective decisions Includes management or direction of grass-roots campaigns

8 Key features of the draft legislation (2) Balanced Approach Register should not impose a significant administrative burden Not required to register every contact Focuses instead on Subject matter and purpose of the lobbying Organisations/persons lobbied Type and intensity of lobbying activity

9 Key features of the draft legislation (3) Designated public officials or officeholders Ministers, Ministers of State TDs, Senators (Members of Parliaments), members of their staff Members of Local Authorities Special Advisors Ombudsman and Comptroller and Auditor General Senior Civil and Public Servants Such other persons or categories of persons as may be prescribed

10 Key features of the draft legislation (4) Exemptions Normal citizen access to representatives Diplomatic service Strictly factual Information Trade Union negotiations Group initiated by Minister where transparency applies Threat to life or safety Between public officials On public record Shareholder of a State body on governance issues Registrar can delay publication of information on grounds of commercially sensitivity having regard to the Public interest Ministerial Certificate can delay publication where disclosure could have an adverse effect Financial interests of the State Governments ability to manage the economy having regard to the public interest.

11 Key features of draft legislation (5) Cooling Off Period Period of one year to apply Officials or office holders to seek approval from the Registrar to take up a role post- public employment involving lobbying former colleagues Conditions may be imposed by Registrar Fair and proportionate approach

12 Key features of the draft legislation (6) The Registrar Standards in Public Office Commission will act as Registrar Focus will be on education, guidance and information Registrar will have Powers of investigation Power to name and shame those who do not comply with registration requirements Offences provisions for significant breaches These powers will not come into force until first review is completed

13 Key features of the draft legislation (7) Reports & Review Annual reports to the Oireachtas (Parliament) Implementation Reports in first 2 years Special Reports to the Oireachtas (Parliament) Review One year after commencement Subsequent Reviews every 5 years

14 Department of Public Expenditure and Reform Thank You

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29 The Austrian Lobbying and Interest Representation- Transparency Act OECD Forum on Transparency and Integrity in Lobbying Paris 2013 Dr. Thomas Schoditsch Austrian Ministery of Justice

30 General Information Adoption of Austrian Lobbying Act on Entered into force on Sanctions executed from

31 Contents I Aims More transparent decision making processes More transparency of facts Corruption? Criminal law Rules of criminal procedure

32 Contents II Scope of application: lobbying companies companies employing in-house lobbyists other lobbyists Exemptions? Lawyers and attorneys Political parties Officially recognized churches Social security institutions

33 Contents III 3 main parts Rules of conduct (Sect. 5) Registration in the Lobbyist Register (Sect. 9) Sanctions (Sect. 13)

34 Rules of Conduct I Various rules of conduct Registration has to be made before Lobbying activities can begin

35 Rules of Conduct II Lobbyist has to specify his task at first contact Specify identity and specific interest of employer Refrain from exerting unfair and improper pressure on public official Comply with a code of conduct

36 Entry in the Lobbyist Register I Maintained by Federal Ministery of Justice Accessible to public by electronic means Free of charge Contains 4 subdivisions Extent of entry obligation in relation to respective carrier

37 Entry in the Lobbyist Register II Up to May 2013: 400 persons 200 companies Average registration fee is EUR 400,-

38 Penalties for violations Violation of Conduct Registering obligations Sanctions (from ): Administrative fines up to EUR Deletion from the register for up to 3 years Certain contracts may become null and void

39 The Austrian Lobbying and Interest Representation- Transparency Law Peter Köppl Vice-President Austrian Public Affairs Association OECD June 27 th, 2013

40 Mandatory Register with many exemptions I Mandatory registration for all direct, structured and organized contacts to officials, aimed at influencing political decision making (including administration) in Austria officials means political decision makers, including their employees and civil servants on federal as well as regional level The online-register was implemented on January 1, 2013 and is administered by the Federal Ministry of Justice

41 Mandatory Register with many exemptions II Registration charges are Euro 600,- for agencies, Euro 200,- for companies and Euro 100,- for associations Sanctions for not registering or misleading registering are: administrative fines up to Euro and / or to be removed from the register for agencies and companies only As of May 31, 2013 about 200 companies, agencies and associations were listed (approximately 700 individuals)

42 Exemptions I Exempted from the requirement to register are: Lawyers, as long as they do not lobby (lawyers interpret this as an overall exemption to register) Members of Parliament, if they lobby on their respective policies Political parties Churches Organizations representing communities (Städtebund, Gemeindebund)

43 Exemptions II Limited requirements for registering are in place for: all chambers, including Federal Chamber of Commerce, Federal Chamber of Unions, Federal Chamber of Employees, Federal Organization of Agricultur (including their regional as well as their technical sub-organizations) Registration has to be made before lobbying activities can begin Companies and agencies have to comply to a code of conduct, which has to be communicated via their websites

44 The four sections of the Austrian Lobby-Register Section A1 and A2 Lobbying-companies and their clients Required information in A1: Basic information about the lobbying-company plus website Description of their scope of activities Code of conduct they comply to Names and dates of birth of all employed lobbyists Number of lobbying-clients and annual total turnover regarding lobbying-contracts Required information regarding clients in A2 (not public): Names of and relevant information about each lobbyingclient The scope of lobbying activities

45 The four sections of the Austrian Lobby-Register Section B Companies employing in-houselobbyists Required information: - Basic information about the company, plus website - Description of their scope of activities - Code of conduct they comply to - Names and dates of birth of all employed lobbyists - Annual expenditures for lobbying more than Euro , Yes or No

46 The four sections of the Austrian Lobby-Register Sections C and D Self-governing bodies and associations Required information: - Website - Number of employees, engaged predominantly in interest representation - Estimate of annual costs of interest representation

47 Points of critique and required improvements (1) Too many vague formulations in the law make room for various ways of interpretations, leading to inconsistent forms of registrations (some do / some do not register) (2) Four sections with highly different levels of transparency requirements are neither logic nor useful all lobbyists have to be treated equal (3) Same transparency requirements for companies, agencies, associations and non-governmental organizations as well as all chambers are crucial to be implemented

48 Points of critique and required improvements (4) Registration for lawyers who lobby, should have to be mandatory (5) Registration for companies and agencies not located in Austria has to be made easier (6) Associations, that do not employ a lobbyist, should not be exempted from the mandatory register anymore (7) Current scheme of fines should be re-designed

49 Austrian Public Affairs Association Represents growing number of public affairs practitioners and lobbyists from all sectors (currently about 100 individuals) Good working relationship with the Federal Ministry of Justice to define / explain current law and to work on improvements Negotiated a Pass for Parliament for all registered lobbyists

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51 Dr. Peter Köppl, M.A. Managing Director Mastermind Public Affairs Consulting GmbH Garnisongasse 3 3a 1090 Vienna Austria T: +43 (0) peter.koeppl@mastermind.cc

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53 P.A.C.E. : Transparency Interests Democracy

54 ABOUT US: Rome, 2011 : 1 st EU Conference of P.A. Professionals held by the Italian Association Il Chiostro Madrid, 2012 : 2 nd EU Conference of P.A.C.E. held by the Spanish Association APRI Paris, 2013 : 3 rd EU Conference of P.A.C.E. held by the French Association AFCL

55 OUR AIMS: Support and Represent Lobbyists National Associations and their Professionals; Contribute to the international debate on lobbying; Develop measures aimed at promoting Transparency and good regulations; Create a permanent Think Thank on lobbying;

56 STATE-OF-ART In many European Countries did not and still do not exist any law that regulates nor officially recognizes the lobbying activity.

57 A CULTURAL PROBLEM The representative bodies that exist in Brussels, along with the acknowledgement of our profession that institutions have shown at European level, often do not reflect a similar situation at national level. LOBBYIST???

58 P.A.C.E: P.A.C.E. gives a voice and represents both EU lobbying national associations, where existing i.e. Italy, Spain, France, Germany, Austria, Romania, Netherlands, Sweden, Czech Republic and European Public Affairs Professionals.

59 DEBATE on LOBBYING: Correctly defining lobbying-> as part of democratic participation and as contribution to better regulations; Safeguarding the public interest -> by enhancing proper transparency rules; Promoting a level playing field -> by establishing objective, proportional and non-discriminatory rules; Avoiding capture by vocal interests groups -> ensuring fair and equitable access by all to information and decision-makers

60 Definition of LOBBYIST : Its definition should be broad enough to cover anyone who enters a decision-making institution with the aim of influencing policy, irrespective of his professional selfcategorization as a lobbyist. No discrimination between consultant lobbyists, in-house lobbyists, professionals associations, lawyers, non-profit entities or religious communities.

61 1.REGULATING LOBBYING? It is not possible yet to decide between either mandatory regulations or self-regulation in terms of effectiveness in general. Taking into account the great differences still existing within the EU Countries framework, PACE believes that to date a co-existence of mandatory or voluntary regulation could be considered.

62 2.REGULATING LOBBYING? PACE suggests that self-regulation of the branch could be a first important public signal, necessary to underline that our profession is carried out by professionals who do not agree nor practice any unethical activities but, on the contrary, provide useful and truthful information to policy-makers in a transparent way.

63 1.REGISTRY PACE considers the general definition provided by the Interinstitutional agreement of the European Parliament and the Commission on the scope of lobbying activities a good starting point, anyhow stresses the importance of considering any institutional level (local, Regional, National or International) related to lobbying activity.

64 2.REGISTRY A lobby registration might be mandatory only if it is comprehensive and coherent in Europe. All Interest Representatives should be treated equally and fair regarding registrations duties and sanctions. If one of these points is missing a mandatory registration would fail in terms of transparency and fairness.

65 REGISTRY RULES If mandatory rules are discriminatory and don t cover ALL players, or impose unnecessary disclosure (like value of contracts, contents of meetings etc), then PACE advocates for self regulation. If rules are similar to those within the Interinstitutional Agreement, the mandatory rules might be acceptable.

66 DISCLOSURE of INFORMATION: Disclosure on lobbying activities and lobbyists should be stored in a publicly available register and should be updated. Core disclosure requirements include information on the person, the organization, the objective of lobbying activity, identify its beneficiaries, in particular the ordering party, and point to those public offices that are its targets.

67 DISCLOSURE of INFORMATION: P.A.C.E agrees with a certain level of information disclosure, but institutions should be aware of bureaucratic burden risks and excessive costs, such as unnecessary reporting.

68 ACCESS RIGHTS: Transparency should be bidirectional Public affairs professionals should be transparent and facilitate public scrutiny. In exchange, ethical and compliant Public Affairs professionals should be allowed to have access to the information they need to deliver its services and to public decisors and their offices.

69 THANKS FOR YOUR ATTENTION! Micol Bertoni Giuseppe Mazzei P.A.C.E. General Secretariat c/o Via Guido Reni Rome Italy Mob

70 ALMOST 3 YEARS DOWN THE ROAD - Lobbying in Republic of Slovenia INTEGRITY I ACCOUNTABILITY I RULE OF LAW

71 2010 Regulation was inforced in Dec. lobbying regulated for the first time: Mandatory registration of lobbyists, Mandatory reporting, Monetary fines for non-compliance, Competent institution: CPC. Problem: public perception of lobbying was negative, cynical response from politicians; CPC launched strong awareness campaign for involved stakeholders. INTEGRITY I ACCOUNTABILITY I RULE OF LAW

72 Number of registrated lobbyists by the end of 2012: 60. Key issues: Reporting lobbying contacts: national vs. local level; Monetary fines & awareness raising influence on reporting; Practical challanges hard to understand what is lobbying. I was not aware that this They was wanted me to vote for new lobbying because no casino one was and I knew this was good for trying to bribe me. our community and it was not illegal They didn t threathen me so I so I didn t report it. thought it was not lobbying. INTEGRITY I ACCOUNTABILITY I RULE OF LAW

73 INTEGRITY I ACCOUNTABILITY I RULE OF LAW BACK

74 2013 Efforts for amending the legislation: Authority to make inquiries & questioning of persons outside public sector, Mandatory electronic/online reporting, Including of ministerial advisors/groups. Challanges: unfavourable political arena INTEGRITY I ACCOUNTABILITY I RULE OF LAW

75 MP, main coalition party: I must say I am really disapointed because we came to a very veird situation when I say to my best friends when they come to my office that I will report to the CPC if they are planning to influence me and that they have to be carefull. So before I offer him coffee he ends the conversation because he is affraid to talk to me. MP, main opposition party: I must warn you that not even in a restaurant or over the phone you are not allowed to communicate without reporting it to CPC. MP, main opposition party: Obviously we have a Commission that is above the Constitution. MP, main coalition party: I hope the Parliament will never again be so naive (to pass a law like this). INTEGRITY I ACCOUNTABILITY I RULE OF LAW

76 Statement by Christian Humborg, Executive Director, Transparency International Germany OECD Conference Forum on Transparency and Integrity in Lobbying Paris, 28. June 2013 Thank you very much for inviting us to this exciting conference. We recognize that OECD has worked on the issues of lobbyism and lobby regulation for many years. Much of its output is cutting edge policy advice. We also feel this conference is very timely since Transparency International is currently preparing a European-wide project looking at lobbyism and lobby regulation. Yesterday, the representative of RTL group claimed that media only reports about lobby scandals but not about regular lobbying activities. Firstly, this is the nature of news. Secondly, let s see what kind of criteria media uses to decide if reporting. I believe this might be helpful to see what we are aiming for. a) Unethical Behaviour: Yesterday we heard of the example of EU parliamentarians accepting money from journalists who claimed to be lobbyists. b) Intransparent Behaviour: An example are the ongoing EURO rescue activities, where it is unclear who is meeting and what the agendas are. Minutes of these meetings are not published. c) Unproportionate Influence: This is the category that deserves a lot more attention and has not been mentioned so far. Disproportionate influence by interest groups may also lead to state capture, which occurs when firms shape the formulation of laws and regulations. An example for unproportionality was the desperate call of members of the European parliament about two or three years ago, across all factions, conservatives, social democrats, liberals, greens and others, that civil society should found a watchdog for the financial sector because they were overwhelmed by the lobby power of the banks and the financial industry. Proportionality is not only about business versus civil society as it is traditionally seen but also big business versus SMEs and civil society. Civil society and SMEs often have no chance to level the lobby activities of big business. When we aspire ethical, transparent and proportionate lobbyism, we have to take into account that transparency is a prerequisite for proportionality. Without transparency, a debate about unproportionality is not possible. There is not one instrument for each of these three goals, but what is rather needed is a coherent political integrity framework with several elements. Let me list them but due to time constraints I will mention most of them only briefly. 1. Anti-bribery laws and Codes of Conduct for MPs and public officials 2. Party and campaign finance 3. Asset and income declaration by MPs and senior public officials 4. Revolving door provisions: We have to be careful not only to discuss length, such as a minimum of two years but also look at the implementation. We also have to look at scope, for example if central bankers are covered. 5. Mandatory lobby register

77 6. Code of conduct for lobbyists: There should be a connection between the lobby register and the CoC. Regulating lobbyits behavior through a CoC is necessary because regulating it only through criminal law would not be proportionate. 7. Expert Groups: In expert groups as a generic term for expert groups, advisory bodies, high level forums etc., we face the issue of too many examples of unproportionality. It is of utmost relevance that membership, agendas and minutes of such bodies are published. 8. Legislative footprint 9. Robust oversight mechanism: You would need one for the lobby register, but also one for the revolving door provisions and for the party and campaign finance. One could argue that all these activities could be done by one body but then other reasons speak for rather separate bodies. The interaction of politicians and civil servants with lobbyists can be regulated on both sides. Traditionally, much focus has been put on the public side and as it has already been said, rightly so. Nevertheless, it might be worth to increase the accountability mechanisms of lobbyists. Why does mostly the public side suffer during lobby scandals when also lobbyists were involved? We are in year 5 of the financial and EURO crisis. People loose trusts in governments day bay day. People see central bankers, politicians and bankers speaking with each other and trying to fix but they do not understand what is really going on. Many people suffer, while there are no consequences for bankers seen anywhere. Many believe that this is due to lobbyism. People see pharmaceutical companies making profit rates above the average of other sectors while they do not even operate in real market because either you are sick and need medication or you are not. At the same time people see the waiting time for doctors grow and the hospital infrastructure deteriorate. The profit rate of pharmaceutical companies relies to a large degree on the good will of regulators and politicians. This is influenced by wide range of lobby activities. To sum it up, Transparency proposes better lobbyists regulation for better policies for better lives.

78 SESSION 3 INTEGRITY IN PUBLIC DECISION-MAKING Susanna Di Feliciantonio President, Society of European Affairs Professionals

79 IT TAKES TWO TO LOBBY Lobbyists should comply with standards of professionalism and transparency; they share responsibility for fostering a culture of transparency and integrity in lobbying. OECD Principles for Transparency and Integrity in Lobbying

80 Important issues must be resolved by discussion and decision, with determination, patience and dedication.

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82 promoting openness monitoring setting the tone supporting ethical decisionmaking managing incentives Real Integrity, ICAEW Charitable Trusts Briefing Baxter, Dempsey, Megone & Lee (2012)

83 SETTING THE TONE Tone at the top Setting shared values We started from the premise that lobbying in [a] broad sense is a fully legitimate exercise, and is indeed part of the political game Citizens have a right to expect that this unavoidable process is transparent and takes place in compliance with the law as well as in due respect of ethical principles. EC Vice President Maroš Šefčovič, 3 June 2013 Recognising that European affairs professionals are a vital part of the democratic process, acting as a link between on the one hand business and civil society, and on the other, European policy makers [ ] European affairs professionals must observe the highest ethical standards Preamble to SEAP Code of Conduct

84 PROMOTING OPENNESS Transparency INSTITUTIONS Effective consultation Public meetings Sharing of documentation LOBBYISTS Disclosure Identity Interests represented Funding sources Whistleblowing Registers of interest representatives Legislative footprints

85 SUPPORTING ETHICAL DECISION-MAKING Codes of conduct Additional rules (funding, gifts and hospitality, conflicts of interest) Training and access to advice Reporting, control, risk management policies

86 MANAGING INCENTIVES Recruitment Rewards / recognition Discipline and sanction

87 A professional body alone does not guarantee high standards but the professions do at least espouse a strong duty of trust, both towards clients and towards upholding the reputation of the profession as a whole. UK Parliamentary Commission on Banking Standards Report 19 June 2013 ˮ

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89 THANK YOU * president@seap.be 8 Society of European Affairs Professionals (Friends of SEAP)

90 How to make transparency and integrity in lobbying a reality? A view from Brussels Robert Mack Vice-Chairman, EPACA Chairman, EMEA Public Affairs Practice, Burson-Marsteller OECD Forum on Transparency and Integrity in Lobbying Paris, 28 June

91 Transparency and integrity Transparency and integrity are two different things Greatest benefit of the EU Transparency Register is its existence! But... Little real impact on the behaviour of lobbyists More focus required on behavioural standards for politicians and officials Transparency Register has had little impact on public perceptions - - of lobbying or of EU institutions

92 Importance of ethical, transparent lobbying Important to argue in favour of ethical, transparent lobbying, as European Commission Vice President Šefčovič does 89% of European politicians and officials agree or strongly agree that ethical and transparent lobbying helps policy development * * A Guide to Effective Lobbying in Europe (Burson-Marsteller. June, 2013)

93 Overall the Transparency Register has been a positive development Mandatory better than voluntary Level playing field Ways to improve the Transparency Register Not all lobbyists register and registrants go about it very differently Currently no discernable disadvantage to the unregistered No more changes to reporting requirements until it is mandatory

94 If system remains voluntary, improve incentives A detailed and clear definition of lobbying... Ways to improve the Transparency Register Such as OECD definition: the oral or written communication with a public official to influence legislation, policy or administrative decisions *...Used consistently throughout the whole system *OECD Recommendation of the Council on Principles for Transparency and Integrity in Lobbying, 18 February C(2010)16.

95 Ways to improve the Transparency Register Clear rules about what should be registered and not registered e.g clarification on ad-hoc coalitions Better enforcement Training of officials Serious complaints mechanism

96 Conclusion EU has taken a number of positive steps It is a combination of efforts which will improve the integrity and the reputation of EU decision-making There will always be room for improvement, but focus now should also be on communicating what has already been done

97 Thank You! For further information: