Senior NSW Liberals will step up the party's fundraising efforts in key marginal seats as unions unleash a "vibrant and robust" campaign against the rising cost of living, privatisation and health after being unshackled from a cap on how much they can spend on political advertising.
The High Court struck down laws that imposed a $500,000 cap on election advertising spending by unions and other third parties in the six months leading up to the state election.
A Liberal Party strategist said the "highly disappointing" High Court decision meant the party had to "up the ante". "Our message is very clear to MPs in our key seats, we have to keep fundraising and urging our supporters to get behind us because we are now severely disadvantaged," the strategist said.
"Most MPs are doing pretty well but we need to keep going and we have been on the phones all morning reminding them of that."
Another senior Liberal said the court decision "will get the back up of a lot of our supporters and they will want to increase their donations".
A coalition of six unions led by Unions NSW challenged the legislation which had slashed the amount third parties could spend from $1.28 million to $500,000. The laws also prevented unions and others from pooling their resources to exceed the $500,000 cap and imposed jail terms of up to 10 years for acting in concert.
Unions NSW secretary Mark Morey.Credit:Wolter Peeters
Unions NSW general secretary Mark Morey said the Liberal Party's "union busting" electoral laws had a "chilling effect" on election campaign preparation.
"There is pent-up fury among unions about the Liberal Party's attempt to rig the election," he said.
"You can expect to see vivid, robust campaigns on the rising cost of living, privatisation, and the crippling effect of overdevelopment and congestion in NSW communities."
A Unions NSW source said it would not likely exceed the original $1.28 million cap.
The NSW Nurses and Midwives' Association general secretary Brett Holmes said his union would not spend more than $1.28 million, but it would definitely spend "far more" than $500,000 to campaign to improve the ratio of nurses to patients.
"We won't go crazy but we want to act in the best interest of our members to get their message heard loud and clear," he said. "I'm not about to spend the equivalent of the $11 million that political parties have got to spend."
Maurie Mulheron who heads the NSW Teachers' Federation which joined Unions NSW, the Electrical Trades Union, United Services Union and Health Services Union in the High Court challenge, said his union would not exceed the original cap of $1.28 million. Teachers will campaign against the public sector wages cap of 2.5 per cent per year.
Shop, Distributive and Allied Employees' Association NSW Secretary Bernie Smith said his union would campaign to restore penalty rates to give retail and fast-food workers the right to valued time with family and friends on public holidays.
A spokesman for the NSW Business Chamber said its board had not yet met to consider the court decision. The chamber "had committed to expenditure for the state election, but we could potentially see greater spending if there is no cap".
The NSW Minerals Council gave no indication of how much it would now spend on political advertising, saying it would continue to comply with electoral laws.
Professor Anne Twomey.
Constitutional law expert Professor Anne Twomey from the University of Sydney said if the NSW parliament does not resume and pass a new law before the March election, there will be no cap on the expenditure of third-party campaigners during the campaign leading up to the election.
"If it does legislate, it could restore the old cap of $1,280,000, as this would be relatively safe, or enact a lower cap, but with express reasoning to justify it.
"After the election, if whoever is in government wishes to pursue the issue, they could hold an inquiry into the appropriate cap level and use the outcome to justify any future legislation imposing a new cap."
Professor George Williams.Credit:Jim Rice
Professor George Williams, who specialises in constitutional law at the University of NSW, said the High Court decision challenges the accepted wisdom that political parties and candidates should be given more space and more opportunities to have their voice heard at election time.
He said the decision will make it much harder for any future electoral laws to draw a distinction between candidates and parties, and third party campaigners.
"That no doubt will be particularly frustrating to those candidates and parties who traditionally through this type of legislation have looked for a privileged position," he said.
NSW Labor said it welcomes the High Court’s "rejection of Ms Berejiklian and the Liberal and Nationals’ cynical attempt to silence legitimate community criticism of their Government".
A spokesman for the NSW Government said it “will now take time to examine [the] judgment in full”.
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