The Lavarch Review was announced by Jodi McKay MP and Anthony Albanese MP in mid-October to inquire and make recommendations into the governance and culture of the Labor NSW Branch administration and campaigning operations including Head Office.
Today the Lavarch Report (conducted by Former Commonwealth Attorney-General and Emeritus Professor Michael Lavarch AO).has been published and makes substantial recommendations into how the workings of the NSW Labor Party Office needs to change to be a transparent, professional and diligent organisation supporting the Labor movement and progressive change.
I am heartened by the fact that following Jodi and Anthonys leadership in establishing the review, the NSW Administrative Committee today endorsed all of the recommendations. I am, no doubt as you are, looking forward to seeing those recommendations implemented.
NSW Labor Leader Jodi McKay and Federal Labor Leader Anthony Albanese today welcomed the review and embraced its recommendations, which set the course for a new era of professionalism, transparency and accountability in the Party Office.
You can read the full report here.
Key reforms proposed include:
A new State Executive Board with majority membership drawn from people with specialist skills spanning, compliance, finance and law to focus on governance oversight across the Party including compliance with fundraising, expenditure and disclosure laws, financial and budget monitoring, auditingand support a culture of compliance within Party Office.
A new Audit and Risk Committee: this will comprise four independent members potentially selected from outside the Party. This will provide an additional check and balance and have the authority to report any suspected illegalities such as fundraising laws and disclosures not acted on by the NSW Branch.
Reform of the General Secretary for the first time, with the role to be fully professionalised. This includes clear job descriptions, KPIs, a statement of skills and experience and performance expectations assessed annually, including grounds for termination.
Five-year ban on General Secretary seeking elected office from when they commence their term, ensuring the role isnt treated as a stepping stone to public office.
The Partys existing Administrative Committee will have its role refocused to political management activities such as strategic planning, calling preselections and ensuring the Party is on a campaign footing at election time.
The report will be further updated to include consideration of any relevant recommendations from the ICAC.
The NSW Branch will report on a six-monthly basis to the National Executive on the progress of implementation.
NSW Labor Leader Jodi McKay said,
I want to thank Professor Lavarch for his frank and fearless report as well as our many decent and passionate Party members for their contribution. This report proposes new structures, new rules and new checks and balances. It professionalises the role of the General Secretary with clear KPIs and it establishes a clear divide between political management and governance oversight.
The Lavarch Review will be seen as a watershed moment a point in time when the Labor leadership says we must and will change. I believe the recommendations Professor Lavarch has made today will set us on a course for a brighter future one where the whatever it takes attitude of Party Office is finally consigned to history.
Federal Leader of the Australian Labor Party Anthony Albanese said millions of Australians relied upon the Labor Party to stand up for working people.
Our focus should be on the people of Australia, not ourselves.Good, honest party members have been shocked by the reprehensible things theyve seen from the NSW Branch and rightly so. Most people in the ALP work selflessly for the cause because they believe in our values. They deserve better. Labor is the only party of government in Australia that seeks to grow the economy, to grow jobs, while ensuring that no one is left behind.
Mr Lavarch was commissioned in mid-October by Jodi McKay and Anthony Albanese to deliver an independent report with recommendations.
The review was informed by the Partys rank-and-file members who responded in overwhelming numbers with a total of 425 submissions.
In recent years, the Party has introduced many important reforms to improve governance at Head Office. However, recent revelations at the ICAC, which relate to alleged activities from 2015, have made clear further action is required.
Further Detail Proposed Reforms
Creation of new State Executive Board to take over from the Administrative Committee and the General Secretary oversight of all compliance and regulatory obligations including public disclosure of donations, financial and budget monitoring, external auditing and supporting a culture of compliance within the Head Office;
Executive Board to have a majority of skills based members with expertise in corporate governance, accounting and finance, law, risk management, organisational culture;
Creation of new Audit and Risk Committee to act as an internal regulator selected of members independent of the Labor management with deep forensic skills with authority to report directly to regulators any suspect illegalities not dealt with by the NSW Branch;
Stripping Administrative Committee of a role in compliance oversight and focusing its role to political matters such as preselections and election preparations;
Administrative Committee to move to quarterly meeting pattern, focusing on the strategic direction of the Party rather than passive receipt of reports from the General Secretary;
Major reform of the General and Assistant General Secretaries roles with full job descriptions, employment contracts including grounds for termination, transparent performance expectations and remuneration, and documented delegation of powers and functions;
Each of the Secretaries ineligible to be nominated for Labor Preselection to a Parliamentary role for first term of office (5 years);
Enhancement of the role of Party President given job description and express power to oversight the General Secretary in relation to expenditures, leave and conduct annual performance reviews;
Requirement for Strategic Plan (4-5 year horizon) and annual operational plans and budget as well full suite of registers to record interests of all paid and unpaid officials and committee members, delegations registers, risk management plans and Committee charters; and
Implementation of reforms to be monitored by the National Executive.
Jodie Heartened by Lavarch Review into the NSW Labor Head Office
06 December 2019