Finlayson Christopher: Members of Parliament (Remuneration and Services) Bill — Second ReadingText is subject to correctionFinlayson Christopher: Members of Parliament (Remuneration and Services) Bill — Second Reading[Sitting date: 22 October 2013. Volume:694;Page:14071. Text is subject to correction.]Hon CHRISTOPHER FINLAYSON (Attorney-General) on behalf of thePrime Minister: I moveThat the Members of Parliament (Remuneration and Services) Bill be now read a second time. This bill improves the law relating to elected members’ remuneration and entitlements to services. It was referred to the Government Administration Committee in March 2012. The committee completed its examination of the bill in June 2013 unanimously recommending that it be passed as amended.The bill deserves nothing less than careful and detailed consideration by the Government Administration Committee and the House for it establishes a new framework for setting entitlements for members of Parliament and the executive. With modifications it implements many of the recommendations in the Law Commission’sReview of the Civil List Act 1979 — Members of Parliament and Ministers. The bill repeals the Civil List Act and modernises and modifies the law relating to the salaries and the allowances of members of Parliament; support services provided for members of Parliament Ministers and certain electoral candidates; annuities and other benefits and privileges for former Prime Ministers; and benefits and privileges for former members of Parliament and I see you are very interested in that part of it Mr Assistant Speaker Robertson.In relation to Part 3 of the bill concerning services to members of Parliament the Remuneration Authority is responsible for determining accommodation services for MPs and Ministers and also travel services for family members of MPs. The Speaker is responsible for setting directions on travel and communication services for MPs and party and member support funding and the Minister responsible for Ministerial Services is responsible for determining any additional travel services for Ministers over and above those set by the Speaker for members of Parliament.Some submissions to the Government Administration Committee expressed concern for the Remuneration Authority setting travel services for MPs and Ministers as was proposed under the original bill. It was considered that the proposed reforms did notreflect the principle that the House has the exclusive privilege to control its own operations. The select committee acknowledged that domestic travel by MPs is critical to the effective functioning of the House. The committee considered that concerns for a non-parliamentary body setting travel entitlements for MPs can be addressed by amending the bill to provide that the Speaker continues to determine travel services for members of Parliament. This should allay concerns about the authority making a determination limiting the ability of MPs to travel and therefore limiting their ability to do their job.There are some intersecting interests here. One is having entitlements determined independently from those who receive them and the other is the democratic interest and the proper operation of the House and the ability of members to carry out their functions. The democratic interest is of fundamental importance and is worthy of being protected from any risk of decision making that could undermine that interest. Under this bill travel by spouses and family members would remain within the exclusive purview of the Remuneration Authority as that travel cannot be said to directly carry the risk of limiting the ability of members of Parliament to carry out their roles.The Remuneration Authority would continue to determine accommodation services for MPs and Ministers. Although accommodation entitlements are important in supporting MPs to carry out their roles on balance travel is seen as more significant. The reality is that MPs need to be accommodated while attending to their duties such as in this House. Any additional travel services excluding international travel and accommodation for Ministers would be determined by the Minister responsible for Ministerial Services.The bill as reported back from the select committee introduces a number of other reforms additional to Part 3. It updates the legislative framework for the setting of salaries and allowances for MPs and Ministers. This will allow members who start mid-term following the vacancy of a seat previously held by a list member of Parliament to be paid lawfully. The bill validates that commencement of salaries paid to mid-term list MPs since 1996 without further costs to the Crown.The financial penalty for members who are absent from the House without permission is substantially increased with deductions starting after 3 days’ absence. The amount deducted reflects the member’s actual salary rather than the salary of an ordinary member. The financial penalty for absent members used to be based on an ordinary MP’s salary; now in the bill it is based on the actual salary of the member and it commences after 3 days of absence rather than the 9 days in the original bill.A new financial penalty for members who are suspended from the House will apply. This reflects the recommendation of the Standing Orders Committee. A legislative obligation on the Remuneration Authority is imposed to include in any determination of salaries and allowances a statement setting out how it has taken into account the personal benefit or potential personal benefit of any other entitlement when determining those salaries and allowances. Additionally entitlements to services are to be determined in a way that takes into account the particular requirements of members with physical or sensory impairments.The bill codifies moves made in recent years to improve transparency around costs to the House. It imposes a statutory obligation on the General Manager of Parliamentary Service and on the Department of Internal Affairs to publish quarterly reports on travel and accommodation costs for MPs and Ministers. It also imposes a statutory obligation on the Clerk of the House to publish quarterly reports on MPs’ and parties’ use of the inter-parliamentary relations programme. The operation of the scheme providing certain former members with entitlements is addressed. As recommended by the Law Commission the bill legislates for the former-member travel entitlements of MPselected before 1999 making those entitlements transparent and changeable only through legislative amendment.A new statutory regime will set out how travel entitlements can be lost including for various offences. A statutory obligation is imposed on Parliamentary Service to publish the travel expenses of former members of Parliament annually. And the bill tightens up the law around the making of superannuation contributions by MPs. It also includes a statutory review clause meaning that the Act’s operations must be reviewed after two full determination cycles. This will allow the House to assess how well the changes contained in this bill are meeting its aims and purposes.These are not radical or modest changes to the regime for setting entitlements for MPs and members of the executive. These are sensible but significant changes that will ensure that this House and its members are properly supported in a way that maintains confidence in the integrity of Parliament. I commend the bill to the House.