Chasing the big political handout

Owen Glenn

He is the big fish that nearly got away from Labour Party president and fundraiser Mike Williams.

Seriously wealthy expat Owen Glenn - he is worth hundreds of millions of dollars and lives in Sydney - told Prime Minister Helen Clark he was willing to give money to Labour when the two met at a tourism dinner in Sydney.

But when Clark got home ... bugger, she could not remember his name.

The next step for Williams would have been to comb through a list of attendees to track down the man with the money.

He was preparing for that task when Glenn did his own follow-up - emailing Clark directly.

This led to Glenn, the founder and chairman of the OTS Logistics Group, which operates in 177 countries, giving $500,000 to Labour as the party gears up to fight this year's election.

Asked why, the 65-year-old former Mt Roskill Grammar student said he liked the way Clark governed the country and felt she stacked up well on the international scene.

"I particularly like her stance on seeking free-trade agreements with China and the United States."

However, Glenn, who has not lived here since 1966, says he does not expect anything in return from Labour. The gift was a "spontaneous gesture".

For Williams - who is among the most open of the political fundraisers - Glenn's gift is a welcome fillip to his fundraising for the election campaign.

Labour declared $1.47 million worth of election expenses after the 2002 election, second only to Act's $1.6 million splashed out on advertising, broadcasting and publishing. This time Williams believes Labour will spend near the $2.38 million limit allowed under the Electoral Act.

Labour's straight-talking president visits about 300 business leaders a year. In one month he might visit, say, all the big fishing companies, or transport companies.

He takes notes in a big red exercise book, goes through them once a month and reports themes - or any "common bitch" - to Labour's caucus.

Williams also sends a thank-you letter for each meeting - inviting a gift to be sent to Labour's general secretary, Mike Smith.

He says he is prepared to take up issues with Cabinet ministers on behalf of business.

"But obviously you can't offer any quid pro quo for a donation because that would be corrupt."

National Party president Judy Kirk says she is on the road five days a week.

Assisted by National general manager Stephen Joyce, Kirk says she, too, visits hundreds of companies.

She maintains National has "rebuilt" its funding base since 2002 when it collected $529,167, compared with Labour's $671,719, and spent $1 million on its campaign.

Kirk will not disclose the party's fundraising target but says it is on course to meet it. In the past, former finance minister Sir William Birch and ex-Brierley Investments and Air New Zealand chairman Sir Selwyn Cushing have helped National raise money from business. They are not involved this year but Kirk says Sir William is "always there" if needed.

Rumour has it the Don Brash-led National has its own sugar daddy in the form of American hedge fund billionaire Julian Robertson. Robertson owns luxury golf courses at Kauri Cliffs and Cape Kidnappers and was once known as the "Wizard of Wall Street". Neither he nor Kirk will confirm or deny that he has given to National.

"I like Helen Clark and I like Don. I don't see why it's anyone else's business," Robertson says. He does, however, deny speculation he has helped fundraise for National.

By law, all gifts above $10,000 must be declared. However, anonymous gifts are permitted. Williams maintains he can never be 100 per cent sure who an anonymous amount is from.

"You get a letter from a lawyer saying, 'I have a client who wants to make an anonymous contribution to your election campaign and here's a cheque'. It will be a cheque drawn on the lawyer's trust account."

However, an executive of a listed company that does not give to political parties suggests larger anonymous givers will want it known they are strong supporters. This may garnish a little more access or influence.

And Raymond Miller, senior political studies lecturer at Auckland University, argues the public has a right to know where political parties get their money from. Removing the existence of anonymous gifts would end concern money was given to "curry favour", says Miller.

Contact Energy shareholder Graeme Bulling was applauded at the energy company's February annual meeting for telling the board that they had no place giving money to parties.

Contact paid $90,000 to political parties last year - dished out according to their proportion of seats in Parliament, to support "the democratic process" of government.

"There's no commercial reason to make donations to political parties unless the company intends to generate some favouritism or patronage from politicians, which would of course be unethical and probably unlawful," Bulling argued.

Green Party co-leader Rod Donald would like to see New Zealand follow Britain and pass a law where listed companies would need shareholder approval before giving money to political parties.

The Greens treat gifts differently than their rivals. In 2002, the party returned two cheques, one from a mining company and the other from a gambling firm, a total of $20,000, because they did not want to run their campaign from the profits of "misery and environmental destruction", says Donald.

The Greens have in the past accepted money from the likes of Telecom and Westpac. Donald says the party's fundraising target this year is in the hundreds of thousands of dollars.

In 2002 it spent $598,105.

Act president Catherine Judd and chief fundraiser John Boscawen are also busy knocking on the doors of business.

Judd hopes Act will have as much in the kitty to spend as in 2002 but acknowledges it is going to be a tougher task this time.

Act benefited from dissatisfaction with National among right-leaning voters in 2002 but Boscawen said National seemed to be collecting more money this year.

Judd will not say whether wealthy businessmen and previous Act backers Doug Myers, Alan Gibbs and Craig Heatley will dip into their pockets again.

They still supported the party but had encouraged it to broaden its base "and that's what we've done".

United Future president Graeme Reeves heads up that party's fundraising and calls on businesses.

"It's the job of a salesman really. The more calls you make, the more success you have," Reeves says.

United Future is hoping to raise up to $500,000. Reeves tells potential benefactors United Future's confidence and supply deal with Labour has produced the most stable government yet under MMP.

New Zealand First president Doug Woolerton says his party tends to target medium-sized businesses. He expects the party to spend more fighting this year's election than the $301,000 spent in 2002.

"We say we will have influence," Woolerton said. "We would tend to get a response from businesses who favour New Zealand ownership."

Policies on political gifts

AMP - Does not.
ANZ National Bank - Board policy allows gifts but company will not say if it makes any.
ASB - Does not.
Auckland International Airport - Does not.
BNZ - Does not.
Carter Holt Harvey - Has stopped.
Contact Energy - Gives to all parties in Parliament based on number of seats. In the year to September 30, 2004, gave a total of $90,000. Discloses gifts so they are not seen as trying to "buy" political favour.
Engineering, Printing and Manufacturing Union - Gave Labour $70,000 in 2002 and the Progressive Coalition $19,000.
Fisher & Paykel Appliances - Is apolitical. "The people elect the government and we will work with whichever party happens to be in power." Does not give.
Fletcher Building - Will not disclose individual gifts but Labour reported receiving $20,000 from the company last year.
Fonterra - "Best left to individual shareholders."
Freightways - Does not.
Infratil - "Apolitical". Says gifts could confuse this position.
Lion Nathan - Gave $25,000 to both Labour and National in 2002 but now has a policy of not giving.
Mainfreight - "Apolitical" and does not give.
NZX - Does not.
Ports of Auckland - Does not.
Port of Tauranga - Does not.
Powerco - Does not.
Promina - "Does not direct specific donations to political parties."
SkyCity - "An appropriate way to support the democratic process." Gives in election years. In 2002 gave $40,000 to both Labour and National.
Sky TV - Refused to comment.
Telecom - Gives across the political spectrum but won't say to whom or how much.
TelstraClear - Does not.
The Warehouse - Does not.
Toll Holdings - Refused to comment.
Tower - Gave $15,000 to both National and Labour in 2002 but no longer gives.
Vodafone - Does not give. Aims to be apolitical.
Westfield - Supports the concept of gifts. Says its policy is non-partisan. Gave Labour $15,000 in 2002.
Westpac - Gives annually as a contribution to the "communications necessary in a political process so people can make informed decisions". Gives pro-rata to all parties in Parliament, $52,000 in non-election years and double that in election years.

2004 donations

* As declared to the Electoral Commission

Labour

Contact Energy $39,000
Fletcher Building $20,000
Owen Glenn $199,960
Helen Clark $10,991
Westpac $15,000
Anonymous $50,000
Anonymous $20,000
Anonymous $15,000
Total: $369,951

National

Contact Energy $20,000
Stephen Jennings $20,000
Waitemata Trust $180,077
Westpac $15,000
Anonymous $70,000
Anonymous $25,000
Total: $330,077