Cullen Michael: Members of Parliament (Pecuniary Interests) Bill — First Reading 
Cullen Michael: Members of Parliament (Pecuniary Interests) Bill — First Reading 
[Volume:612;Page:9266] 
Hon Dr MICHAEL CULLEN (Minister of Finance) 
: 
 I move  
That the Members of Parliament (Pecuniary Interests) Bill be now read a first time. 
 The bill requires members of Parliament to disclose their pecuniary interests in order to highlight and avoid possible conflicts of interest between members’ public duties and their private interests. It is designed to strengthen public trust and confidence in the parliamentary process by promoting greater transparency openness and accountability. At the conclusion of the debate I shall propose that the bill be referred to the Standing Orders Committee on which all parties are represented. 
The register is not a register of wealth; only the nature of the interest will be registered and not the actual monetary value. Members will be required to disclose 12 types of interest including interests in companies trusts and property travel undertaken donations and gifts and debtors and creditors. In determining the various categories of interest to be disclosed a balance was struck between the need for some form of regulation on the one hand and the preference for a straightforward scheme on the other. For example the bill as drafted does not require the disclosure of family interests. While requiring the interests of close family members to be listed would provide some safeguard against members avoiding the disclosure requirements it would also be an intrusion on the privacy of the families of members of Parliament. The Standing Orders Committee may want to consider that issue and the appropriate balance to be struck between those matters. 
The register is to be collated annually and a summary of returns is to be presented to the House and published. Once the bill is enacted it is intended that the first disclosure of interests will be required as at 31 January 2005. Thereafter the disclosure of interests will be required following election and on an annual basis. The office of registrar will be held by the Clerk of the House of Representatives. He will administer the register and provide guidance to members of Parliament. 
It will be the responsibility of each member of Parliament to ensure that he or she complies with the registration requirements set out in the bill. Publicity and public expectations will supplement that voluntary compliance. The Controller and Auditor-General will also have a role in compliance by reviewing the returns and having the power to conduct an inquiry into individual returns on the Auditor-General’s own initiative or in response to a complaint. Sanctions for an actual conflict of interest will continue to be dealt with under the Standing Orders. 
The establishment of such a register in New Zealand will bring us into line with jurisdictions such as the United Kingdom Australia and Ireland. The register will also complement our existing arrangements for the disclosure of interests. In accordance with the provisions of the  
Cabinet Office Manual 
 Ministers have been required to declare their interests in an annual register of Ministers’ interests and assets since 1991. Once the register for members of Parliament is in place the register of Ministers’ interests and assets will be reviewed and amended if appropriate. The members’ register with its annual disclosure requirement also complements the existing requirement that ad hoc declarations of interest be made by members of Parliament before they participate in House business if they have an interest. The failure to disclose such an interest is a contempt of the House. 
Consideration of course was given to providing for the scheme through the Standing Orders but this proposal was not supported by all parties. Given that the scheme which is inherently parliamentary in nature is to be set up through legislation concerns have been raised about the risk of judicial intervention. In order to reduce the risk of judicial intervention a provision could be added to the bill to state expressly that the register and the administration of it is a proceeding in Parliament. The Standing Orders Committee is clearly the most appropriate body to consider and make recommendations on whether to amend the bill as introduced to include a proceeding-in-Parliament clause. I expect the committee will focus on that matter. 
The bill establishes a rule-making power for the House of Representatives in order for it to make rules about fees forms of returns and any other matters contemplated by the legislation that will be necessary for its administration or necessary to give it full effect. It is intended that the House of Representatives will make such rules by consensus. The publication of the summary of members’ interests will be a public register under the second schedule of the Privacy Act. That means that the Privacy Commissioner will be able to investigate to ensure the administration of the register complies with the information privacy and public register principles. 
I commend the bill to the House.