News Store
f2 home   >   News Store  >   News Article
Quick Search | Advanced Search | Company Search | Browse Archives

There's profit for the political insider

Author: Jason Koutsoukis
Date: 12/09/2003 19:56:00
Words: 1755
Publication: Financial Review
Section: The great class divide
Page: 24
Source: AFRBreaking

When Qantas chief executive Geoff Dixon realised he wasn't going to get John Howard to do what he wanted the old-fashioned way - by talking to him - he did the next best thing.

Dixon turned to the Liberal Party's former federal director Lynton Crosby and its current pollster Mark Textor - of Canberra's hottest new government relations consultancy Crosby Textor - to help him refine his message and make sure it hit the target.

What Dixon wants is the repeal of the Qantas Sale Act which places strict controls on Qantas's level of foreign ownership.

But with foreign ownership of Australian corporate icons always a sensitive political issue, Qantas has never managed to convince the government on the merits of such a move.

Not exactly an outsider when it comes to parliament house - Dixon has successfully lobbied Howard and Transport Minister John Anderson on a number of issues from blocking the sale of Ansett to Singapore Airlines in 2000, to preventing Emirates from getting greater access to Australian skies earlier this year - Dixon's talent for persuasion has nevertheless been exposed on the foreign ownership issue.

What Crosby Textor offered Dixon was quantitative and qualitative research - the raw material of modern politics - to help politicians understand how the idea of increased foreign ownership in Qantas could be presented to the public in a positive way.

With the results of that research still being pored over, the political class in Canberra has awaiting Dixon's next move.

Lobbyists used to be regarded as just "door openers", political flunkies who inhabited a shadowy world in which a tidy sum could facilitate a meeting with Canberra's powerbrokers.

Today's lobbyist however is a much more refined beast.

Armed with not only their contact books, they prowl the corridors of power in their sharp suits spruiking many varied instruments of manipulation and solutions to a hundred political headaches.

With fees of up to $500 an hour, they'd want to be setting up more than just a tea and biscuit with the relevant minister.

In the past these self-proclaimed fixers have tended to come from the journalistic ranks, but today they are much more likely to have graduated from deep inside the political bunker of Parliament House.

Ex-advisers who claim an intimate knowledge of the political, legislative and regulatory processes - not to mention ministerial foibles - promise to deliver real and effective results for their clients.

They are, in fact, guns-for-hire who have parlayed their status and expertise as former political insiders into a profit-making proposition. The practitioners of this particular art of persuasion don't like to reveal too much about their modus operandi and they certainly won't tell all about their clients.

According to Canberra lobbying veteran Peter Sekuless, now a part-time consultant with the government relations firm Gavin Anderson, the nature of the lobbying game has changed fundamentally since the Howard government came to power.

"Although in most respects the actual day-to-day work of lobbying has not changed much over the years, since the election of the first Howard government in 1996 there has been an appreciable shift in the power equation from the bureaucracy to the ministry, from the public service to the politicians and their advisers," says Sekuless.

"To a large extent the Howard government has been more successful than its predecessors at keeping the reins of power in political hands at the expense of the bureaucracy.

"As a result the strategies and tactics of lobbyists have had to adapt accordingly."

That means spending more time physically inside Parliament House talking to ministers and backbenchers, and less time talking to bureaucrats.

"In hiring new staff, political experience now tends to outweigh a bureaucratic background of specific policy knowledge," he says.

If the word apparatchik didn't exist, it would have to have been invented to describe Lynton Crosby.

The former Liberal Party boss who directed the party's last two federal election victories, Crosby is just the latest Coalition political insider to have opened a government relations shop in Canberra - although Crosby estimates that political strategy accounts for only 20 per cent of the business, with the other 80 per cent focused on investor relations and corporate strategy.

Crosby Textor claim superiority over their competitors on the grounds that they offer clients what today's politician cannot do without - namely proven research skills.

But Crosby, as one of Howard's closest friends in politics, also knows that he can dial the Prime Minister's office at any time and confidently expect his call to be answered.

Crosby insists that the secret to getting your message heard on Capitol Hill should not be shrouded in any particular mystery or reliant on connections - he says it's mainly just plain speaking.

"Common sense," says Crosby. "If you are a chief executive, or you represent any major organisation here in Australia, then if you want to see someone here in Canberra, then all you have to do is ring them up and they will see you. There is no secret to that."

"Government is a process that must be followed, so people who want to deliver a message to government have to ask: what is your message, who are your targets?"

"That can be the hard part. Refining a competent message.

But would he represent anyone?

"Well I certainly wouldn't be taking on that workers' collective that is the ABC as a client," says Crosby.

"I don't think in this business you can pretend to be something that you aren't or else you have no credibility with the target audience."

For Gavin Anderson chief executive Ian Smith, whose marriage to Democrats Senator Natasha Stott Despoja last week confirms his status as a political insider, understanding context can be the most important part of any campaign to lobby government - something that people outside the unique environment of Canberra often miss.

"The power of context is critical when it comes to selling a message," says Smith. "And the Qantas case is a perfect example of that."

'It doesn't matter what the issue is, the context has to be right if you are going to persuade any government to listen," says Smith.

Andrew Parker had worked for former Liberal leader John Hewson as a media adviser before establishing Parker & Partners as a government relations business in 1998.

He says that simply presenting a problem to the government and then asking them to fix it is unlikely to work in most cases these days.

Representing a number of film industry bodies with concerns about the impact of a potential free trade agreement with the United States, Parker says the key to the campaign has not been to criticise the FTA itself, but instead highlighting the importance of the local industry to Australia and Australians.

"So that when this gets to cabinet, the ministers sitting around that table will have a very positive image of the film industry in their minds, and understand what is at stake if that industry is exposed to unfair competition from the US film industry."

When Royal Dutch/Shell launched a takeover bid for Australian oil and gas producer Woodside, managing the political dimensions of the bid hardly seemed like the most important consideration.

Woodside, on the other hand, guessed the bid's Achilles heel and hired Textor - who was then running the Australian arm of the US-based Wirthlin Worldwide polling group - to find out how sensitive a political issue the Woodside takeover could be out in the electorate.

While the final decision to approve or reject the takeover rested with Treasurer Peter Costello, Woodside employed ALP national secretary and Gary Gray, to present Textor's research to Western Australia's federal Liberal backbenchers and work them up into a lather.

Stoking their concerns and fears that Australia would be giving away control of its energy resources to a foreign interest, the campaign successfully worked without even having to touch Costello directly.

Suddenly realising their bid was in trouble, Shell turned to Gavin Anderson.

"It's hard to imagine that a company like Shell, which has a huge presence in Australia, could be so relatively unknown to politicians in the sense of what they did and contributed to Australia," says Gavin Anderson's Smith.

"Even though many federal ministers had been guests of Shell at the opera or other cultural events, in the end that did not translate," he says.

"What it shows is that there is more to this just than sitting down with someone and pitching your argument - you have to have a long established presence not just with ministers, but with the backbench and the bureaucracy as well."

And when it comes to proposed changes to things like media ownership laws, the Opposition and Democrats have also become important.

Which is where boutique consultants such as Steve Carney and John O'Callaghan, who operate together as a kind of political odd-couple (Carney is a former National Party staffer, and O'Callaghan a former Labor staffer), come in handy.

"Government is about more than just the Coalition - you have to understand the full picture. You don't usually go into court unrepresented and you probably shouldn't come into this building unrepresented either."

 
Back to Search Results
 

Advertise with Us | f2 Network Privacy Policy | Conditions of Use | Member Agreement
© 2003 f2 Australia & New Zealand Ltd.