EU DIARY:Last week's lobbying scandal draws attention to an industry NGOs say is dangerously underpoliced, writes Jamie Smyth
BRUSSELS WAS rocked by a lobbying scandal last week after media claims that a senior official gave market-sensitive information to reporters posing as lobbyists.
The EU's anti-fraud office, Olaf, opened an investigation into the activities of Fritz-Harald Wenig, a European Commission trade department official. He had been photographed lunching with undercover reporters at one of Brussels' most exclusive restaurants, where he allegedly leaked the names of two Chinese firms likely to get special status if the EU imposes a tariff barrier against Chinese candlemakers.
Wenig has denied wrongdoing and has gone on leave while Olaf investigates the Sunday Timesstory. The newspaper says it has recordings to substantiate its scoop.
The commission is particularly sensitive about lobbying and insists its officials are not unduly influenced by the estimated 15,000-20,000 lobbyists that ply their trade in Brussels. But NGOs that monitor lobbying say the industry is worth hundreds of millions of euro a year and is still dangerously underpoliced.
Alter-EU, an alliance of 160 groups campaigning for lobbying transparency, says corporate lobbyists get privileged access to decision-makers and often employ dubious methods to influence new legislation. There are also many cases of a "revolving door" relationship between big business and European institutions, with public officials moving to the private sector and vice versa.
Last week's scandal coincided with the sentencing of Jack Abramoff, a disgraced former Washington lobbyist, who corrupted politicians with golf junkets, expensive meals and seats at sports events. The trial judge said the former lobbyist's actions had "shattered public confidence in government". He jailed Abramoff for four years.
The Abramoff scandal prompted US lawmakers to tighten regulations in Washington by passing the Legislative Transparency and Accountability Act of 2006, which requires lobbyists to publish frequent and detailed reports on their activities.
In Brussels, the Sunday Timesstory has turned the spotlight on the commission's own efforts to ensure lobbyists are not abusing their position.
In June, European Commissioner for Administrative Affairs Siim Kallas launched a voluntary register to bring more transparency to the industry.
Under his plan, lobbyists and firms that contact the commission directly are invited to provide basic information: an outline of their lobbying activities, overall turnover, and the amount spent on lobbying.
Spanish telecommunications giant Telefónica, which owns mobile firm O2, was the first firm to register, revealing it spent €950,000 on lobbying in 2007.
"By registering right away we show how strongly we support this transparency initiative," said Carlos Lopez, head of global public policy for Telefónica.
But there has been no rush to sign up. Only 331 organisations or firms have registered so far, and not a single Irish one among them.
The Irish Farmers' Association and Irish Co-operative Organisation Society (Icos) are considering whether to sign up.
"It is important to note that Icos is not just a lobbying organisation but has many other functions and services to its members which need to be taken into account in our evaluation," says Carol McGinley of Icos.
The National Farmers' Unions in England and Scotland have both signed the register, with the Scots spending between €50,000 and €100,000 a year on lobbying.
Brendan Butler, Ibec's director of EU and internal affairs, says the organisation will sign the register shortly. "We will be signing and advising our members about the register," says Butler, adding that most big firms would probably agree to disclose financial information, as they have to do this already in the US.
Intel, which has huge operations in Ireland, says it plans to sign up, but it remains to be seen if the hundreds of other US firms with Irish headquarters follow suit.
Some small firms have criticised the voluntary nature of the register. John Hume, a partner in Hume Brophy, a pan-European lobbying firm with offices in Ireland, says a mandatory register would be better because it would force everyone to disclose the same information. "It is a very competitive industry," he says.
"Why should we divulge what we spend on lobbying if our rivals Hill Knowlton or Fleishman Hillard don't?"
Commission officials admit to concern at the slow pace of registration. "Clearly 330 for the moment is not enough," says spokeswoman Valérie Rampi. "The situation will be reviewed after one year."
But for critics of the register, a year is too long. "The number of people who sign up to the current register is irrelevant because the register is simply not transparent or effective," says Jorgo Riss, director of Greenpeace's EU policy office.
"The lobbyists decide what lobbying is and what is spending on lobbying under the current register, whereas the US has binding rules with clear definitions. The EU is years behind."
