Outrage over Cash for Votes Secret Deal

• Libs and Labor secure secret election funding deal
• Tony Windsor calls the deal “a smear and a slur on all of us.”
• Wayne Swan says reforms are necessary “to ensure there is integrity in our political system”

The grubby world of politics has traversed new depths with both major political players the Coalition and Labor agreeing to a secret deal that will see taxpayers pay some $20 million a year to boost their political campaigning war chests.

Under the agreement, both parties will begin siphoning the public purse to the tune of millions of dollars well before the September 14 Federal Election.

The Gillard government has confirmed that the first payment of about $2.5 million will be distributed as soon as the legislation passes the Senate next month, boosting the campaign war chests of all players.

The new, additional public funding for so-called “administrative’’ ­ purposes, was secretly negotiated between Labor, the Liberal Party and the Nationals.

On top of the tens of millions in existing public funding dished out after each election, parties and independents will now receive $1 for each vote they receive in the House of Representatives and $1 for each Senate vote. The money will be paid at 33c a year and in quarterly installments.

In addition, each party (defined by having a minimum of five senators or MPs) will receive $300,000 a year in so-called annual “compliance funding’’.

The secret deal, that effectively cements the duopoly to the detriment of any new or emerging political parties in the future, has been slammed by Independents Rob Oakeshott, Tony Windsor and veteran Labor senator John Faulkner condemned his own party.

Senator Faulkner called the measures a “disgrace” adding that he was “no longer angry and disappointed but ashamed” of Labor.

“We are providing administrative funding to political parties without any public policy purpose,” he told caucus. “It is very bad politics and even worse policy.”

Rob Oakeshott called the deal indefensible.

“This cannot in any way be defended as being in the best interests of taxpayers, voters, the community or the nation,” he said.

“We are providing administrative funding to political parties without any public policy purpose,” he is said to have told caucus. “It is very bad politics and even worse policy.”

Treasurer Wayne Swan defended the measures, saying there had been an element of public funding in the political system since 1984.

“These are important reforms to ensure there is integrity in our political system, and yes it does have an element of public funding with it,” he said.

“It’s part and parcel of making sure that our political system is not captured by people with large amounts of money.”

Asked why the changes were being backdated to April, Mr Swan said the laws had been in the works for five years.

“And it’s appropriate that it starts and applies to the (September) election.”

Mr Swan denied he sledged MP John Faulkner when the Labor stalwart declared he was “ashamed” of the changes in a party meeting on Tuesday.