Mr Andren asked the Minister representing the Special Minister of State, upon notice, on 4 March 1998:

(1) Has it been established whether the Greenfields Foundation, which was recently revealed as having made a loan to the federal Liberal Party, is an associated entity within the terms of Part XX of the Commonwealth Electoral Act 1918 .

(2) Do the disclosure provisions of Part XX of the Act include in the definition of gifts requiring disclosure to the Australian Electoral Commission any dispositions made for inadequate consideration.

(3) Has it been established whether loans for inadequate consideration are considered gifts within the terms of the Act.

(4) Is the Minister able to say whether the loan by the Greenfields Foundation to the Liberal Party was on commercial terms and for adequate consideration; if so, how was the information to support this conclusion obtained; if not, what steps is the Minister taking to ensure all gifts and loans for inadequate consideration made to political parties are subjected to the disclosure provisions of the Act.

Mr Fahey (Finance and Administration) —The Special Minister of State has provided the following answer to the honourable member's questions:

(1) The Australian Electoral Commission has no grounds upon which to conclude that The Greenfields Foundation meets the definition of an associated entity under the Commonwealth Electoral Act 1918.

(2) Yes. The definition of "gift" is given at subsection 287 (1) of the Act and includes any dispositions made for inadequate consideration.

(3) Yes, loans made under terms amounting to inadequate consideration would be considered to be gifts.

(4) The terms of the loan made by The Greenfields Foundation to the federal secretariat of the Liberal Party are, at this stage, unknown to the Australian Electoral Commission. The terms and arrangements of this and any other significant loans will, however, be examined by the Commission during its audits of all political parties.