Read The Times Australia

Daily Bulletin

Explainer: why the High Court ruled Bob Day's election to the Senate invalid

  • Written by: Bede Harris, Senior Lecturer in Law, Charles Sturt University
image

The High Court, sitting as the Court of Disputed Returns, unanimously decided on Wednesday that former Family First senator Bob Day was not eligible to be elected to the upper house. The case demonstrates that courts adopt a strict approach to determining whether candidates are disqualified from standing for election.

What was the case about?

The issue before the court was whether Day was disqualified from being elected because of Section 44(v) of the Constitution. This says anyone who “has any direct or indirect pecuniary interest in any agreement with the public service of the Commonwealth” is ineligible to be elected to federal parliament.

This section’s purpose is to prevent conflicts of interest. The theory is people who have financial dealings with the government might not act independently as MPs. There is an exception covering cases where the interest exists only because a person is a member of a company with more than 25 shareholders.

The case was to some extent academic: Day resigned from the Senate even before hearings began, when his building company went into liquidation.

However, it was still necessary to decide whether he was eligible to stand for election in the first place. It was also necessary to decide how the resulting vacancy should be filled.

The issue of whether Day had had an interest in a contract with the Commonwealth was complex. Day occupied electorate offices owned by a company, Fullarton Investments, which leased the offices to the Commonwealth Department of Financial Services. In turn, the Commonwealth provided them to Day as part of his parliamentary entitlements.

The problem arose because the Day family trust had previously owned the building, which it then sold to Fullarton, lending Fullarton the money to buy it. The trust guaranteed a bank loan to Fullarton, which was secured by a mortgage over the property, and also serviced the mortgage.

Fullarton was expected to pay to the Day trust rent, which Fullarton received from the Commonwealth in exchange for the Day trust servicing the loan. The Day trust would then use that money to service the loan. If no rent was received, then the fact the Day trust had guaranteed the loan would mean it was liable to the bank.

In practice, Day paid the rent himself. But that did not remove the problem because – on paper at least – the Day trust had a financial interest in the lease Fullarton had with the Commonwealth.

The question the court had to decide was whether these intricate financial arrangements meant Day had a “direct or indirect” interest in Fullarton’s contract with the Commonwealth.

What did the court find?

The court adopted a strict interpretation of Section 44(v).

It held the section was designed not only to prevent the Commonwealth from using contracts an MP held to pressure them, but also to ensure an MP would not try to benefit from such agreements, or put themselves in a position where their financial interests conflict with their duty to the people they represent.

The court pointed out that MPs are supposed to question and criticise government on behalf of the people, and hold government to account. So, if an MP has a financial interest in a contract with the government, there is a risk they might not be rigorous in doing this.

The court said that because Section 44(v) prohibits not only direct but also indirect interests in agreements, the fact the Day trust stood to receive the rent, even via an indirect route, meant Day himself had an interest in the lease.

For this reason, his election was invalid.

Who will replace Day?

The next issue to be decided was how the resultant vacancy should be filled.

The court had the power to order a recount. How it would be conducted depended on a test in an earlier High Court decision, which was that the method used should reflect:

… the true result of the polling – that is to say, the true legal intent of the voters.

Labor candidate Anne McEwan, who could potentially win the seat depending on how the count was done, argued before the court that because of Day’s high profile, simply allocating his preferences would distort the result. She argued that, if a special count was done, the votes received by Day’s Family First group above the line – and the votes he received below the line – should be ignored.

In other words, McEwan was saying that most of the votes received by the other Family First candidate, Lucy Gichuhi, were received only because Day was on the ballot. McEwan argued that only votes received below the line by Gichuhi should be counted, which would have reduced Gichuhi’s chances of being elected – and enhanced McEwan’s.

The court rejected this argument. It held that to ignore the votes cast for Family First just because Day was a high-profile candidate would be unfair to voters, as it would distort their real intentions. The court held voters would know that if, for any reason, Day was not elected, his votes would flow to Gichuhi.

If that preference flow occurs as expected, the likelihood is Gichuhi will win the seat.

The key importance of the Day case is that courts interpret the eligibility requirements for election strictly. Even the most tenuous financial interest in dealings with the Commonwealth will be enough to disqualify a candidate.

Authors: Bede Harris, Senior Lecturer in Law, Charles Sturt University

Read more http://theconversation.com/explainer-why-the-high-court-ruled-bob-days-election-to-the-senate-invalid-75556

Business News

How Businesses Can Prepare for Unexpected Power Outages

Power failures can occur quickly. The supply may be interrupted by bad weather, issues with the electricity network, damaged equipment or local construction work. This can be just a hassle for a fam...

Daily Bulletin - avatar Daily Bulletin

How Chatswood Tutoring Can Fit Into a Student’s Weekly Routine

Create a Predictable Weekly Structure A consistent weekly routine can make study easier to manage when students are balancing several subjects. Chatswood tutoring can provide a fixed learning point a...

Daily Bulletin - avatar Daily Bulletin

The Rise of Digital Marketplaces in the Australian Trade Sector

For decades, the Australian trade and construction sector operated almost entirely on word-of-mouth recommendations and local community networks. Small business owners typically relied on local newspa...

Daily Bulletin - avatar Daily Bulletin

How Immigration Lawyers Can Help

Introduction Visa decisions can shape employment, family life, study plans, travel, and future residence. A small omission can lead to delay, added expense, or refusal. Immigration lawyers assess l...

Daily Bulletin - avatar Daily Bulletin

How Industrial Drying Equipment Supports Efficient Processing

Many industrial processes require moisture to be removed from compressed air, products or process materials before they move to the next stage. Excess moisture can affect equipment performance, produc...

Daily Bulletin - avatar Daily Bulletin

Practical Ways a Whiteboard Can Improve Workplace Communication

Effective communication helps teams stay organised, share ideas and keep track of important information. While digital tools are now common in many workplaces, a whiteboard continues to provide a simp...

Daily Bulletin - avatar Daily Bulletin

Designing Eco-Friendly Custom Water Bottles for Your Next Event

The Evolution of Sustainable Event Merchandise Event planning has undergone a massive transformation over the last decade. Gone are the days when organizers could hand out cheap, single use plastic...

Daily Bulletin - avatar Daily Bulletin

Why Choosing a Professional Florist Melbourne Makes Flower Delivery Impactful

Flowers have a great power to speak when humans cannot express their feelings with right words. Flowers are the best gifts when you are celebrating a birthday or welcoming a newborn child into your fa...

Daily Bulletin - avatar Daily Bulletin

The Business Case for Choosing Australian Fabricators Over Imported Alternatives

For a long time, you might have defaulted to overseas suppliers when sourcing fabricated metal components for a project. The unit price was lower on paper, and the maths seemed straightforward. That...

Daily Bulletin - avatar Daily Bulletin

The Daily Magazine

How to Choose Removalists in Melbourne for a Smoother Move

Finding suitable removalists in Melbourne is easier when the decision is based on the actual require...

Market growth, trends and opportunities in Australian sports nutrition manufacturing

Protein powder used to belong to bodybuilding culture. These days a tub is as likely to sit on a s...

How a Flexible Coworking Workspace Can Help Glen Iris Professionals

Create a better boundary between home and work For many remote workers and independent professional...

Why Sydney's Older Timber Homes Are the Last to Show Visible Termite Damage

There is a common misconception about how termite damage becomes apparent. Most homeowners assume th...

What to Consider When Choosing Duct Cleaning Melbourne Services

When property owners search for Duct Cleaning Melbourne services, the first consideration should b...

Why Does a Toothache Suddenly Turn Constant?

For weeks the tooth only complained now and then. A twinge with ice cream, a brief ache after a swee...

Best Jewellers in Brisbane to Discover for Custom Engagement Rings

Choosing a jeweller for a custom engagement ring is an important decision. The process involves mo...

How fast can you charge an EV at home? Charger speeds explained

Ask new EV owners what worried them before buying and charging time comes up early. A petrol tank fi...

Crossing Several European Borders? How to Keep Your Phone Working the Whole Trip

A multi-country trip through Europe can cross three borders in a day. Take the coach from Split to...