The preferential voting system produces, or at least encourages, preference deals. It is that simple. The deal is played out in party how-to-vote cards which advise voters how to fill out their ballot papers. They are as old as the preferential system itself, especially at local electorate and state level. Relatively new though are the highly disciplined national deals, in line with the general tenor of modern Australian politics.
The term deals suggests something underhand, but these are generally fairly benign arrangements between like-minded parties on both sides of politics. This means that the majority of the supporters of the parties involved are already inclined to vote that way anyway. If a party leadership attempted to direct preferences against the general disposition of their followers then a grassroots revolt might occur. Leaders have to be careful what they do.
The how-to-vote card merely attempts to firm up the situation, perhaps adding another 10 per cent of second preferences to what would have occurred anyway without any guidance at all from above. So the impact of these deals should not be exaggerated. They probably matter most when there is a genuine market for preferences, as between competing minor parties such as the Greens and the Democrats.
Examples of preference arrangements include those long-established between the Liberals and the Nationals when they compete with one another in what are called three cornered contests. This arrangement attempts to avoid second preference votes drifting away from the Coalition towards Labor.
Other past examples range from the Liberals and the Democratic Labor Party through to the Liberal Party and Family First in the 2004 election, a deal initiated by then Liberal Prime Minister John Howard himself. The Greens and the Democrats have each entered preference arrangements with Labor on a number of occasions.
At first, however, the Democrats refused to enter preference arrangements or even to distribute preferences in individual seats on the grounds that such a practice was against the participatory ethos of the party and besmirched its independent image. They issued double-sided how-to-vote cards to avoid taking sides.
What is in it for the parties concerned? Overwhelmingly the reason is electoral benefit. The relationship has to be a win-win situation. In the House of Representatives the benefits are almost all with the major parties as usually only the preferences of the minor parties are distributed. Rarely does the minor party have any chance to win in the House