Lifting the Lid on Lobbying
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LIFTING THE LID ON LOBBYING ENHANCING TRUST IN PUBLIC DECISION- MAKING IN THE NETHERLANDS Transparency International (TI) is a global movement with one vision: a world in which government, business, civil society and the daily lives of people are free of corruption. Through more than 100 chapters worldwide and an international secretariat in Berlin, TI is leading the fight against corruption to turn this vision into reality. Transparency International Nederland (TI-NL) is the Dutch Chapter of TI. TI-NL works with government, business and civil society to put effective measures in place to tackle corruption and promote integrity. www.transparency.org www.transparency.nl Authors: Anne Scheltema Beduin and Wesley ter Weele © 2015 Transparency International Nederland. All rights reserved. © Cover photo: iStockphoto/DNY59 Every effort has been made to verify the accuracy of the information contained in this report. All information was believed to be correct as of March 2015. Nevertheless, Transparency International Nederland cannot accept responsibility for the consequences of its use for other purposes or in other contexts. TABLE OF CONTENTS EXECUTIVE SUMMARY AND RECOMMENDATIONS 5 EXECUTIVE SUMMARY 5 RECOMMENDATIONS 8 INTRODUCTION 10 Definitions 11 Report outline 11 MAPPING THE LOBBYING LANDSCAPE 13 NATIONAL CONTEXT 13 Holland Financial Centre 14 Political context 15 Historical context 19 Social context 22 Legal context 23 TYPES AND SCALE OF LOBBYING 27 Definitions 28 Types of lobbying 30 Defence and other revolving doors 32 Who is a lobbyist? 35 Players in the field and their position towards lobbying 37 The Dutch Association of Banks 40 SELF-REGULATION OF LOBBYIST ACTIVITIES 43 The BVPA 43 The RamBam case and the BVPA 44 WATCHDOGS: THE ROLE OF MEDIA AND CIVIL SOCIETY IN MONITORING LOBBYING 45 The Dutch Lottery and conflicts of interest 46 REGULATING LOBBYING 48 TRANSPARENCY, INTEGRITY AND EQUALITY OF ACCESS 48 Towards transparency 48 Score in the category of transparency 55 Fostering integrity 56 Score in the category of integrity 58 Equality of access: Levelling the playing field 59 The budget-cut dialogue of Zeist 60 Score in the category of equality of access 62 APPENDICES 63 I. ABBREVIATIONS 63 II. METHODOLOGY 64 III. LIST OF INTERVIEWEES 65 IV. DATA COLLECTION AND VALIDATION 66 LIFTING THE LID ON LOBBYING 3 V. DATA COLLECTION QUESTIONNAIRE 67 VI. SCORES 81 VII. SUGGESTIONS FOR FURTHER RESEARCH 84 4 TRANSPARENCY INTERNATIONAL EXECUTIVE SUMMARY AND RECOMMENDATIONS EXECUTIVE SUMMARY Dutch society has little insight on who is lobbying whom, with what means and to what end. When undertaken with integrity and transparency, lobbying can be a legitimate way for stakeholders to access public policy development and implementation. But, with hardly any regulation, the lobbying landscape in the Netherlands is opaque. Lacking even a definition of lobbying, the discussion on the desirability of lobbying or regulation of lobbying is often bogged down in platitudes. This lack of regulation does not mean that all lobbying happens in the dark. Nor does it mean that the lobbying sector is small or silent. On the contrary, it is an active and growing sector. This is partially due to the nature of Dutch politics, which can be described as continuously striving for consensus and the creation of broad-based support (the polder model). One reason for the increase in lobbying activity may be new forms of partnership between government and the private and non-profit sectors (publiek-private samenwerking). The latter presents new challenges for public officials and politicians to make objective policy and decisions. This – combined with the fact that citizens actively wear several different “hats” and fulfil various roles as they contribute to society – may prove a risky combination, potentially leading to undue influence in decision-making. Only a few people and organizations seem to value these risks. The majority appears to hold the opinion that there “is nothing wrong as long as the powers at work are somewhat in balance”.1 Nevertheless, the past few years an increase in pressure demanding more transparency regarding lobbying activities can be observed. At the beginning of 2014, the Dutch ministers of Finance and of the Interior and Kingdom Relations answered questions from two MPs concerning the transparency of the lobbying practices of Dutch banks. The questions were: Do you agree that transparency regarding lobbying activities is not only relevant for banks, but for all trade and industry? Do you share the opinion that more transparency is necessary regarding lobbying activities of the Dutch trade and industry? If yes, how will you ensure this? If no, why not? The ministers answered as follows: Within several sectors there is increasing social pressure for more transparency regarding lobbying activities. For each sector we will have to see whether more transparency is possible beyond the measures already in place.2 1 “Roep om strengere regels voor lobbyisten neemt toe”, De Gelderlander, 21 June 2011. www.gelderlander.nl/algemeen/binnenland/roep-om-strengere-regels-voor-lobbyisten-neemt-toe-1.739695 <consulted 8 December 2014> 2 Answers to the questions of MPs Nijboer and Bouwmeester (both PvdA) to the ministers of Finance and of the Interior and Kingdom Relations and concerning transparency in the lobbying practices of Dutch banks (sent in on 18 December 2013, published on 7 February 2014), 2. zoek.officielebekendmakingen.nl/ah-tk-20132014-1142.html <consulted 25 March 2015> LIFTING THE LID ON LOBBYING 5 What are these “measures already in place”? Are they sufficient? Is more transparency possible? If so, is it desirable? This report seeks to address such questions. The lobbying environment in the Netherlands at the national level3 is mapped out and discussed, and recommendations are provided on possible improvements. The report also explores the extent to which citizens have access to information on different aspects of public decision-making processes and lobbying activities (transparency); the mechanisms in place to promote ethical lobbying and deter undue influence (integrity); and whether the public decision-making process is sufficiently accessible to all relevant stakeholders and what measures might level the playing field (equality of access). Since the turn of the century, there have been some developments regarding the regulation of lobbying. In 2001, the largest association of lobbyists (BVPA, Beroepsvereniging voor Public Affairs), introduced a code of ethics for its members, and, in 2012, the House of Representatives installed a “Lobbyist Register”.4 Both initiatives are limited in their effectiveness, however, due to their voluntary nature, their (practical) applicability and shortcomings in enforcement. Furthermore, the integrity framework for public sector employees does not specifically cover lobbying-related issues; information about what lobbyists and decision-makers discuss is only piecemeal; and there are few rules on public disclosure regarding input from (informal) consultations, and even fewer on proactive disclosure by lobbyists. This report is part of the ‘Lifting the Lid on Lobbying’ project, which involves 19 European countries assessing the situation with regard to lobbying and its regulation.5 In April 2015 the Secretariat of TI (TI-S) will publish a regional report on the key findings, trends, challenges and good practices across Europe. The methodology for the research has been developed by TI-S. The research for this report was primarily qualitative: various secondary sources such as SOMO, Burson and Marstellers’ The Guide to Effective Lobbying in Europe, several OECD and GRECO reports, parliamentary documents and public websites, complemented by primary data obtained from 12 in-depth interviews with policymakers, former policymakers, lobbyists and experts in the field of lobbying. However, a quantitative element was also included. The data for this part of the research is based on a set of 65 questions (Annex V). Depending on the answers, the question was scored 0, 1 or 2.6 The overall score of the Netherlands (Annex VI), as a percentage of the maximum overall score, gives an indication of the current regulatory situation in the Netherlands concerning lobbying. For more on the methodology, please turn to Appendices II, IV, V and VI. The results of the quantitative research confirm the need to regulate the lobbying sector. The scores for transparency (25%), integrity (38%) and equality of access (39%), as well as the overall average score (34%) show the limited extent to which the decision-making processes in the Netherlands at present protect against risks of undue influence from stakeholders and corruption. It should be noted, however, that the fact that Netherlands scores quite low – though not excessively low when compared to other European countries – is due to the lack of statutory regulations. These scores have no direct relation with factual lobbying activities that take place in the Netherlands. 3 Because of the scope and time limiting this study, the provincial and local levels were not included in the research. An exception is the case study The budget-cut dialogue of Zeist. It is suggested that lobbying at provincial and local level may prove relevant for further study. 4 House of Representatives, Lobbyistenregister (date unknown). www.tweedekamer.nl/over_de_tweede_kamer/lobbyistenregister <consulted 9 October 2014> 5 The participating countries are Austria, Bulgaria, Cyprus, Czech Republic,