He says more than 900 full-time independent lobbyists are now working in Canberra, more than 30 for every cabinet minister.

It is now difficult for the government to act on issues such as budget repair because of the ability of vested interests with their lobbying power to "influence government in a quite disproportionate way," he says.

"Lobbying has grown dramatically in recent years, particularly in Canberra," Mr Menadue says..

"It now represents a growing and serious corruption of good governance and the development of sound public policy.

"Action to assert the public interest in the face of powerful vested interests is necessary on many fronts. The problem is urgent."

Mr Menadue was secretary of the Department of Prime Minister and Cabinet, working to Prime Ministers Gough Whitlam and Malcolm Fraser, ambassador to Japan, head of the Immigration and Ethnic Affairs Department, CEO of Qantas, general manager of News Ltd and founder of public interest think tank, the Centre for Policy Development.

His views on lobbyists lead a collection of essays to be launched on Thursday, Taking care of the public interest: A call to action, being published by Australia21.

The book will be launched in Canberra by Kate Carnell, CEO of the Australian Chamber of Commerce and Industry.

In his contribution, Mr Menadue takes aim at his former employer, News Ltd,

"With more than 60 per cent of metropolitan newspaper circulation in Australia, News Ltd is a major obstacle to informed debate on key public issues like climate change," he says.

Lobbyists cover a range of interests including mining, clubs, hospitals, private health funds, business and hotels that have all successfully challenged government policy and the public interest, he says.

"Just think what the Minerals Council of Australia did to subvert public discussion on the Resources Super Profits Tax and the activities of Clubs Australia to thwart gambling reforms or the polluters over the emissions trading scheme and the carbon tax.

"With its lobbying power over the major parties, the hotel lobby at the state level effectively determines hotel operating hours.

"With journalism under-resourced, the media depends increasingly on the propaganda and promotion put into the public arena by these vested interests.

"Many of the policy skills in Canberra have been downgraded and much of the policy work is now in the hands of young staff in ministers' offices that are much more inclined to listen to vested interests.

"Policy work within the government is now undertaken more in specialist organisations such as the Productivity Commission rather than in the departments.

"Departmental policy capability has been seriously denuded."

Mr Menadue's prescription for change goes further than the current requirement for federal lobbyists to be registered with the Department of Prime Minister and Cabinet.

"They should also be obliged to promptly, publicly and accurately disclose the discussions and meetings they have had with ministers, shadow ministers and senior public servants," he says.

"A public interest impact statement prepared by an independent and professional body should accompany all proposals by special interest groups.

"Departments such as Health that are so influenced by special interests should have different governance arrangements.

"The traditional minister/departmental model in Health is a happy hunting ground for vested interests that significantly influence outcomes in health.

"The Reserve Bank, composed of independent and professional persons, has shown the benefit of such governance arrangements in keeping vested interests at bay and promoting an informed public debate."

Another contributor to the book, former Liberal leader John Hewson, writes that politics has become very short-term, disturbingly personal, negative, populist and opportunistic.