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2007 Report

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ANNUAL REPORT AND DETERMINATION OF ADDITIONAL

ENTITLEMENTS FOR MEMBERS OF THE PARLIAMENT OF

NEW SOUTH WALES

by the

PARLIAMENTARY REMUNERATION TRIBUNAL

pursuant to the

Parliamentary Remuneration Act 1989

30 August 2007

PARLIAMENTARY REMUNERATION ACT 1989

REPORT PURSUANT TO SECTION 13(1) OF THE ACT

INTRODUCTION

Section 11 of the Parliamentary Remuneration Act 1989 (“the Act”) prescribes that the Parliamentary Remuneration Tribunal (“the Tribunal”) shall make an annual Determination as to the additional entitlements for Members and Recognised Office Holders (as defined under the Act) on or before 1 June in each year or on such later date as the President of the Industrial Relations Commission of New South Wales determines. On this occasion the President directed that the Determination shall be made on or before 31 August 2007.

Section 13(1) of the Act requires that the Tribunal makes a report to the President of the Industrial Relations Commission of New South Wales for each Determination made by the Tribunal. The President is then required, as soon as practicable after receipt of the report, to forward it to the Minister (see section 13(2)).

Because of the election conducted on 24 March 2007, the Tribunal, in an effort to complete its annual review by the statutory reporting date of 31 May 2007 wrote only to the Presiding Officers seeking any submission they may wish to make for the current review. The new Speaker, the Hon Richard Torbay MP, wrote to the Tribunal requesting that it consider an extension of time to the review so that the views of the new Parliament could be considered. The Tribunal agreed to this request and letters inviting submissions were sent to all Members. It is for this reason that the review was extended by the President of the Industrial Relations Commission to 31 August 2007. More will be said about the reporting dates below.

Part One of this Report will outline general matters raised as part of the annual review and any adjustments to additional entitlements. As is the usual practice, the Tribunal has made changes that are considered minor or of an administrative nature to the Determination without the need for detailed separate reasons being provided. The submissions did, however, raise a number of substantive issues which, in the Tribunal’s view, merit further consideration and/or comment. Part Two will provide a summary of the Determination.

PART ONE

1.	GENERAL MATTERS RAISED

Electoral Allowance

In addition to submissions seeking a general increase to the Electoral Allowance, the Speaker has written to the Tribunal seeking clarification on the purpose and use of the Allowance noting that:

	“…sections 10(2A) and 10(2B) of the Parliamentary Remuneration Act are somewhat ambiguous as to the role of the Tribunal in respect of electoral allowance and the extent to which general guidelines and conditions apply to the Electoral Allowance.”

In addition, one submission has sought the return of unexpended Electoral Allowance by Members to the Consolidated Fund and that Members be required to publish all expenditure from this Allowance.

The Tribunal has previously outlined the history and purpose of the Electoral Allowance, including the methodology used for calculating this entitlement (see PRT Initial Determination, 20 December 1999, pp.43-49). This Determination arose from significant changes to the Act (the 1998 Amendments) principal among which was the inclusion at section 10(1) of the principles the Tribunal was to have regard to when determining Members’ additional entitlements, viz;

	“10(1)(a)	additional entitlements are to be provided for the purpose of facilitating the efficient performance of parliamentary duties of members or recognised office holders.”

The 1999 Determination required, because of the wording of the Legislation, that Members repay the unspent portion of their allowances, including the Electoral Allowance, to the Consolidated Fund.

In its 2000 Report and Determination (which, in effect, was a review of the 1999 Determination) the Tribunal considered more fully the role of the Tribunal in interpreting the Legislation and making rules and conditions consistent with its interpretation of the Act. In so far as the Electoral Allowance was concerned and repayment of the unspent portion of that Allowance, the Tribunal concluded that:

	“…The Crown Solicitor has made clear that the obligations which arise with respect to Members use of electoral allowances derives directly from the Act, without any requirement or particular need for the Tribunal to regulate the question by determination. Having regard to that opinion, and given the somewhat vexed legal issue arising in these proceedings there is much to be said for the Tribunal not providing any interpretation of the statute as may be ordinarily contemplated in proceedings for declaratory relief. Rather the statute itself will speak to the obligations of Members. The Tribunal should regulate allowances for Members by prescribing the circumstances under which the allowances may be used. The draft determination reflects such an approach. It is an approach which will ensure that any obligations as to repayment of the unspent portion of allowances falling on Members will be confined to those specifically deriving from the statute. The Tribunal did not intend in its initial determination, and will now avoid by this approach, any superimposed (and additional) obligations arising out of any determination made by the Tribunal over those created by statute (which may have the potential of creating unintended adverse consequences).
	In these circumstances the conditions for the payment of electoral allowances have been reviewed and the allowances simply adjusted from its present levels having regard to the cost of living and any other relevant considerations (which considerations were discussed in the initial determination).”

As a result of this Report, the Parliament amended the Act in 2001 to provide greater certainty as to what was to happen with the unspent portion of the Electoral Allowance. The new section provides:


(2B)	The following provisions apply to the electoral allowance:
	(a)	the allowance is payable to members (whether or not recognised office holders),
	(b)	the allowance is payable in money,
	(c)	the allowance is payable as compensation in respect of all incidents of the performance of parliamentary duties (other than those compensated or reimbursed by other additional entitlements),
	(d)	different amounts may be fixed for different members or classes of members.

This amendment had the effect of removing the narrow requirement that the allowance was used only for certifiable expenditure. The Allowance now compensates Members for all incidents of the performance of parliamentary duties.

The Minister’s Second Reading Speech explains the purpose of the amendment:

	“…By removing the requirement to repay the unspent portions of electoral allowances, the tribunal has restored the traditional arrangements in respect of this allowance. This Government will address the issues raised by the Crown Solicitor by legislating to retain the historical practice in respect of the electoral allowance—a practice common throughout all jurisdictions in Australia. This bill will make clear the intention of Parliament. It will overcome the present uncertainty as to what is required to happen to the unspent portions of electoral allowances. The bill provides that the tribunal will determine the quantum of the allowance. The bill makes a separate provision for electoral allowances and states explicitly that electoral allowances will be paid as compensation in respect of all incidents of the performance of parliamentary duties. In other words, it is intended to compensate all aspects of a member's responsibilities in his or her electorate and not merely matters within the narrow definition of expense reimbursement.
	This amendment does nothing more than provide greater certainty that members may continue to receive their electoral allowances as they have since their introduction in 1956. The bill articulates in a clearer way the fact that members are entitled to retain their electoral allowances. Members will continue to acquit the unspent portions of the allowance with the taxation commissioner, as has historically been the case. It treats electoral allowances no differently from what occurs in Federal and other State and Territory jurisdictions. Electoral allowances will not count for superannuation purposes. The bill also provides a transitional provision to ensure the clarifying amendments apply to the electoral allowances payable under the current determination.”

It is clear from the Minister’s Second Reading Speech that the Tribunal’s role in respect of the Electoral Allowance is to determine the quantum and nothing more. This is reinforced by sections 10(2C), (3) and (4) of the Act, introduced at the same time, which provide:


“(2C) Subsections (3) and (4) apply to determinations with respect to additional entitlements, other than the electoral allowance.
(3)	A determination may provide for additional entitlements in any form, including but not limited to:
	(a)	the payment of additional allowances in terms of allowances, fees and other emoluments payable in money (including for example travel allowances, travel expenses, and committee allowances), and
	(b)	the provision of services, facilities and equipment (including for example electorate services, electorate staff, electorate offices, office equipment, travel, and communication equipment).
(4)	A determination may:
	(a)	fix conditions on which an additional entitlement is to be provided, and may specify the form of substantiation (if any) that is required for particular kinds of additional entitlements, and
	(b)	involve the reimbursement of the whole or a part of actual expenses, and
	(c)	identify an existing entitlement as an additional entitlement, and
	(d)	withdraw or alter an additional entitlement.”

As noted above, section 10(2B)(c) of the Act provides that the Electoral Allowance is provided as compensation for all incidents of the performance of parliamentary duties. Section 4 of the Act defines “parliamentary duties”. Section 10(2C) of the Act excludes the Electoral Allowance from the Tribunal’s general condition-setting powers in respect of additional entitlements. This suggests that the Tribunal’s role, insofar as Electoral Allowance is concerned, is limited to determining the quantum only and not to provide any further clarity or interpretation on the use of the Electoral Allowance or its purpose and conditions beyond that provided in the Legislation. Consequently, the Tribunal has removed the Electoral Allowance from the application of the Guidelines and General Conditions applicable to all additional entitlements.

If any greater certainty or clarity is required in respect of the Electoral Allowance, it should be sought and, if necessary, legislated.

Sydney Allowance

In its 2006 review, the Tribunal foreshadowed that it intended to remove the annual entitlement to the Sydney Allowance as part of the 2008 Annual Determination unless there were compelling reasons for not doing so.

One submission has been received that opposes the removal of the annual entitlement on the basis that it would increase the cost of administration and would be inconsistent with the Tribunal’s policy of encouraging Members to make more permanent accommodation arrangements. The Tribunal is yet to be convinced by these arguments. Whilst the Tribunal continues to support the proposition that a Member elected to Parliament should make more permanent accommodation arrangements in Sydney, it does not necessarily see the annual entitlement as essential for achieving this. In this regard, the Tribunal notes that currently less just over 40% of the Members in receipt of the Sydney Allowance elect to take the annual entitlement where in 2001/02 nearly 60% of Members elected to take the annual entitlement. On the basis of these figures it seems the opting of the annual allowance is becoming less popular. In so far as the additional administrative burden is concerned associated with the administration of the annual entitlement, the Tribunal has been advised that the process each year of obtaining returns from Members on the number of overnight stays in the previous 12 months and then reconciling them with records, is particularly burdensome for the Parliament’s administrative support staff. The Tribunal is also aware of adverse comments by the Auditor General on the delays in receiving reimbursement for unspent portions of the annual Sydney Allowance from Members by the Legislature. These matters need to be taken into account in considering the contention that the removal of the annual entitlement would add to costs.

The Tribunal will take no further action at this time and will seek the views of Members at the time of the next annual review before making a final determination on this matter.

The Tribunal has also received submissions from some Members seeking the restoration of the Sydney Allowance to those electorates (Campbelltown and Camden) in outer metropolitan Sydney. The submissions contend that travel time and the late finishes of Parliament and the early starts required the following day, make it necessary for Members residing in these electorates to stay overnight in the city.

The Tribunal is not satisfied that Members residing in these electorates should receive an entitlement to the Sydney Allowance. Camden and Campbelltown, like Penrith, are now part of the Sydney Metropolitan Area and many thousands of people commute from these areas to and from the city without additional recompense. Furthermore, the Tribunal notes in the year 2007/08 the Legislative Assembly sat for a total of 45 days. For 19 of these days the Assembly sat beyond 10.00pm. Parliamentary Records show that only on 10 occasions did the Legislative Assembly rise after 11.00pm and on 5 of these occasions this occurred on a Friday. The Tribunal has also received more detailed information about sitting times from the Legislative Council. This shows that for the 53rd Parliament (2003-2007) the Legislative Council sat for a total of 183 days. On 74 occasions the Council sat beyond 10.00pm and on 28 occasions beyond 11.00pm over the 4-year cycle of the 53rd Parliament.

Even though sitting days do extend late into the evening it should be noted that sittings do not commence in the Legislative Assembly at 10.00am on most days and in the Legislative Council 11.00am on most sitting days. Whilst the Tribunal understands that Members may need to be in Parliament earlier to attend meetings and prepare for the day’s sitting, the Tribunal is of the view that there would be sufficient time for Members to go home and return the next morning. In this regard, the Tribunal notes that a train trip from Central to Campbelltown on average takes less time than a trip from Central to Penrith – another outer metropolitan electorate that does not attract the Sydney Allowance.

Having regard to the foregoing considerations, the Tribunal will not be reinstating the electorates of Campbelltown and Camden to Category 1 for the Sydney Allowance.

Concern has also been expressed about the need for Members, when in Sydney on parliamentary business, to sign the Parliamentary Register as proof of attendance. It has been suggested that the use of aeroplane boarding passes should be sufficient for such purposes.

The Tribunal considers that Condition 8 in respect of Sydney Allowance currently provides sufficient flexibility for Members to provide proof of attendance in Sydney on parliamentary business. When this business necessitates a need for Members to be in Parliament House, then the Tribunal considers it reasonable that Members sign the Attendance Register.

One submission has sought a review of the definition of a Member’s principal place of residence. This matter was reviewed in 2005. The Tribunal does not consider there are any grounds to revisit this matter. The conditions applicable to the Sydney Allowance provide sufficient clarity to ensure a Member’s principal place of residence can be identified.

Electorate Mailout Account

The Speaker has submitted that the unspent portions of the Electorate Mailout Account not be returned to the Consolidated Fund but that it be carried forward each year and that only at the end of the 4-year parliamentary term would any unspent amount be returned to the Consolidated Fund.

The Electorate Mailout Account (EMA) is provided to each Member of the Legislative Assembly to allow the Member to communicate with his or her constituents. The rate determined is based on two mailouts per year to each constituent in the Member’s electorate. The EMA was intended as a means of regular communication with constituents on electoral matters. Unspent monies from this Account are returned each year to the Consolidated Fund.

The Presiding Officer’s submission seeks to allow Members to retain the unspent amount throughout the parliamentary term. Whilst it may not be the intention, as the Tribunal understands the submission it would, for instance, permit a Member who is provided with an annual allocation of $50,000 in the EMA, to refrain from sending out timely communications to constituents and to accumulate, over the life of the Parliament, a fund of potentially $200,000 to expend on mailout activities prior to the election. The Tribunal considers that this proposal is inconsistent with the rationale underpinning the EMA, which is to facilitate regular or timely communications to constituents regarding matters of interest or concern to the electorate.

Moreover, in considering this matter the Tribunal sought advice from the Secretary of the New South Wales Treasury, Mr John Pierce. Mr Pierce advised that the proposal to carry forward any unspent portion of the EMA throughout the Parliamentary term is contrary to section 23(1) of the Public Finance and Audit Act 1983. Mr Pierce further advised that the Treasury had sought the advice of the Crown Solicitor prior to advising the Tribunal.

The Tribunal, therefore, declines to vary the Determination in the manner proposed by the Speaker.

Electorate to Sydney Travel Warrants

Submissions have again been received seeking to extend the value of the travel warrant to include the cost of getting to and from the airport. This matter was considered as part of the 2006 annual review. At that time the Tribunal concluded that:

“…The Tribunal has considered this matter carefully but is of the view the existing arrangements are adequate. The Electorate to Sydney travel warrants are for exactly that purpose – travel to and from Sydney. Each warrant has a value based on the cost of the airline ticket from the airport nearest the Member’s home to Sydney. Members have the additional flexibility of using whatever means they wish to travel to Sydney provided the cost does not exceed the value of the warrant. Any extra travel required is to be met from the LSA or the Members’ electoral allowance.”

The Tribunal makes the final observation that part of the reason why non-metropolitan members receive higher levels of Logistic Support Allocation and Electoral Allowance is to accommodate the additional travel costs.

List of Approved Items in the Logistic Support Allocation (LSA)

In 2006 the Tribunal made some observations regarding the list of approved items in the Logistic Support Allocation (LSA) and concluded that:

	“…As to the broader question of the list, unless it is convinced otherwise, the Tribunal intends to remove the list of items for which the LSA may be used as part of its next determination. This will allow Members and/or the Presiding Officers to make submissions on this matter for the Tribunal’s consideration.”

The Speaker has written to the Tribunal advising of possible problems that the removal of such a list would create. The Speaker sees a possible solution being the amalgamation of the Electoral Allowance and the LSA as a means of overcoming this problem of what may and may not be purchased from the latter entitlement. An alternative approach suggested by the Speaker is that the list be maintained by the Presiding Officers having regard to taxation, funding and accounting implications.

The Tribunal does not consider the amalgamation of the LSA with the Electoral Allowance as a viable proposition. The Tribunal does, however, consider that the Presiding Officers are best placed to maintain a list of approved items where the full implications of the addition of items can be examined prior to inclusion. The maintenance of the list by the Presiding Officers will also provide greater flexibility in terms of timing of additions or deletions from the list. The Conditions applicable to the list have been amended to reflect this change.

Additional Staff for Members

In 2006, the Tribunal undertook an extensive review of staffing levels for Members. The review was broad reaching and covered staffing both in electorate offices and in Parliament House. In respect of the provision of additional electorate office staff the Tribunal stated:

	“… The Tribunal has examined the material put before it and considers that, overall, there has been an increase in the workload of electorate officers to warrant additional support. The Tribunal is not satisfied, however, that the workload is such in all electorate offices as to justify the salary, on cost and the additional cost of refitting electorate offices for a third full time electorate officer at this stage.
	The Tribunal proposes, therefore, to determine that additional funding be provided to each Member who is currently allocated two electorate officers (Independent members are already provided with three electorate office staff) so that they may employ casual relief staff equivalent to the (average) number of days that Parliament is sitting. The average number of days the Legislative Assembly sat since 2000 is 61 days.
	The entitlement will provide a budget specific for recruitment of temporary staff. The budget is to be equivalent to the salary of an electorate officer Grade 2 for a period of 61 days per annum. This will allow those members who bring staff into Parliament to employ a person at the electorate office. The funds are to be used for no other purpose.”

The Tribunal provided further clarity in the application of this entitlement by way of a Ruling made on 4 September 2006. That Ruling provided for non-metropolitan members to engage, where suitable, Sydney-based temporary staff to work at Parliament House on sitting days only. In that circumstance the two electorate officers may remain in the Members’ electorate offices.

In the current review, submissions have been received from Members seeking to break the nexus between parliamentary sitting days and the employment of additional staff. It is argued that Members should have the flexibility to employ additional staff at any time during the year to provide assistance at either Parliament House or the Electorate office not just when Parliament is sitting. A number of submissions have also requested that all Members be able to utilise the assistance of either temporary staff or permanent electorate staff for work at Parliament House during sitting days.

The Tribunal has had regard to these submissions and considers, on balance, that it is appropriate to provide Members with the flexibility to engage additional staff at times of the year that meets the particular needs of the Member. Further, that it is appropriate that Members decide, based on their own circumstances, whether this additional assistance is located at Parliament House or at their Electorate Office. Submissions received by the Tribunal, including the Speaker’s submission, indicate that funding for staff assistance has been provided for the 61 days. The conditions applicable to this entitlement have been adjusted accordingly.

The President of the Legislative Council has also written to the Tribunal seeking additional financial assistance for Members of the Legislative Council who elect to have their research officer work from their home office. It is understood that previous Presidents had provided approval for this arrangement. It is further understood that the current President has now approved a Member’s research assistant working from the Member’s home office. The President informs the Tribunal that such requests are likely to escalate because one of the major parties has decided to select candidates on the basis that they represent particular zones of the State.

Unlike Members of the Legislative Assembly who represent specific electorates and are each provided with an electorate office, Members of the Legislative Council, whose electorate is, in effect, the entire State, have only been provided with an office in Parliament House. The Tribunal has determined that Members’ homes shall be provided with appropriate business equipment. The Tribunal has also determined that each Member of the Legislative Council shall be entitled to one staff member (cross bench Members are provided with two staff members). Such staff are employed by the President and historically have worked from the Member’s Parliament House office.

There is, of course, nothing to prevent a Member of the Legislative Council having his/her member of staff working from a location other than Parliament House. The President, as the employer of such staff, may quite appropriately make decisions on whether the staff member should work from Sydney or another location and, if the latter, under what circumstances. It is, however, another matter to seek additional funding in the Member’s LSA to accommodate an arrangement which is essentially an arrangement of convenience agreed between the President, the staff member and the Member.

Whilst the Tribunal understands that accommodation at Parliament House may be tight, it is concerned about the cost implications of a proposal that could facilitate the wholesale relocation of support staff for Members of the Legislative Council out of Parliament House. More importantly, however, part of the rationale for the proposal appears to be to accommodate a decision by one of the major parties to select candidates on the basis that they represent particular zones of the State. The Tribunal does not regard its role as tailoring entitlements to accommodate what may be regarded as a party political initiative.

Motor Vehicles

The Tribunal has received a submission requesting that motor vehicles be provided to Members.

This matter has a long history. In 1990, the Premier issued a special reference to the Tribunal to make a determination on the provision of Government-owned motor vehicles to Members for use in servicing their electorates and on other parliamentary business.

The Tribunal undertook its investigation and determined that Members should be provided with motor vehicles and all costs of the vehicle should be met from the Member’s Electoral Allowance.

In March 1992, the Director-General of the Cabinet Office instructed Parliamentary Counsel to draft a Bill to overcome what were perceived to be constitutional impediments to the proposed scheme where, under a salary sacrifice arrangement, Members could opt to be provided with a motor vehicle in return for reduced allowances. The Bill was intended to overcome any conflict with the prohibition imposed by s 13 of the Constitution Act 1902 regarding the involvement of Members in transactions which constituted a "contract or agreement for or an account of the Public Service of New South Wales." The Parliamentary Remuneration Act 1989 was also to be amended to enable the Tribunal to make determinations which provided Members with an option to receive reduced allowances in return for non-cash benefits. The Bill making these changes was not passed and subsequently lapsed.

Since that time Members have periodically sought a review of this matter and the Tribunal has always supported the provision of motor vehicles to Members but noted that legislative amendment would be required for this to occur. The Tribunal also notes that in most jurisdictions, including the Commonwealth jurisdiction, Members are provided with private plated motor vehicles for servicing electorates.

The Tribunal continues to support the provision of motor vehicles to Members on the basis that it would simplify considerably the present complex rules and procedures relating to travel by Members; it would be consistent with arrangements for Members in other Australian jurisdictions; and would be cost neutral as there would be a reduction in Members' allowances to cover the costs associated with providing the vehicle.

The Tribunal would respectfully suggest that the Government review the legal aspects of this matter with a view to removing any impediment to Members being able to access vehicles from State contract on similar terms and conditions available to the public sector generally. Once the legislative aspects have been finalised the Tribunal would be prepared to undertake a special reference on this matter.

Committee Allowances

A submission has been received seeking that the Chairperson of the Public Accounts Committee be paid the same allowance as that paid to the members of that Committee. The submission also seeks the extension of the Committee Allowance currently paid only to members of the Public Accounts Committee to all Committees.

The Tribunal is not prepared to accede to this proposal. In undertaking this role, the Chair of the Public Accounts Committee, like the Chairs of Joint Standing and Select committees, receives additional remuneration equivalent to a total of 14 per cent of salary. That is, based on the current salaries of Members, the Chairs of these Committees receive an additional $17,720 per annum. The Tribunal has not been provided with a sufficiently cogent reason as to why this should be increased.

The members of the Public Accounts Committee have historically received an allowance in view of its statutory nature and its role in Government activities. Again, no argument has been presented to the Tribunal for the need to change the existing arrangements.

Party Status

A submission has been received seeking to use the numbers of party Members in both Houses when considering additional entitlements for office holders of Opposition and cross bench Parties.

The Act provides that Leaders and Deputy Leaders of political parties of not fewer than 10 Members in the Legislative Assembly and 9 Members in the Legislative Council are Recognised Office Holders for the purposes of additional remuneration. What is being sought is to combine the numbers of Members from the same party in both Houses to meet the minimum number requirement.

To adopt this approach would be contrary to the Act. Whilst Members in both Houses may represent the same party, the Act makes a clear distinction between memberships of parties in each House. Accordingly, the Tribunal is not prepared to make the determination sought.

Party Contributions

A submission has also been received seeking to have mandatory political party contributions that are used only for hospitality services for guests of the party, to be deducted from the Logistic Support Allocation. The mandatory nature and the quantum of such contributions are matters for individual political parties.

These contributions are matters for political parties and the Tribunal has consistently stated that it will not make determinations that support or facilitate party political activities.

Travel Bookings

The Tribunal has received a number of submissions regarding the requirement that Members make air transport bookings through the booking agent nominated in the New South Wales government travel contract. Those submissions have expressed a preference for greater flexibility in organising travel bookings by allowing Members to book flights over the internet with service providers.

The Tribunal’s Determination currently specifies that Members use the New South Wales government travel contract where possible. The Tribunal has been advised that, since this condition was introduced in 2000, all major Australian airlines have developed on-line Internet booking facilities. It is argued that this innovation provides Members with greater flexibility in making travel arrangements by being able to make instant bookings directly with the service provider.

The Tribunal understands that Parliament is part of the wider public sector and that public sector agencies must comply with New South Wales Government period contracts as administered by the State Contracts Control Board. Submissions received by the Tribunal have not demonstrated any exemption to this arrangement therefore the Tribunal cannot support the amendment as requested.

Second Electorate Office – Member for Barwon

In the 2006 Report, the Tribunal commented on the significant increase in the size of the electorate of Barwon. The Electorate of Barwon, which previously covered an area of 116,930 sq kms, now covers a total area of 221,570 sq kms and incorporates the main population centres of Moree, Cobar, Narrabri and Gilgandra. The size of the electorate is comparable to that of Murray-Darling, which covers a total area of 250,338 sq kms. As a result of those changes the Tribunal determined that the Electorates of Barwon and Murray-Darling should receive identical levels of Electoral Allowance and other additional entitlements.

The Tribunal has now received a submission requesting that the Member for Barwon be provided with a second electorate office and associated equipment and services. The Member for Murray-Darling is provided with an additional electorate office as determined by the Tribunal in January 2000. As the electorate of Barwon is comparable in size it is reasonable that the Member for Barwon is also provided with an additional electorate office. The location of the second office is a matter to be resolved between the Member and the Speaker.

Tribunal Annual Report Date

Section 11(1) of the Act provides that the Tribunal is required to make its annual determination by 1 June each year, or such later date as the President of the Industrial Relations Commission directs.

Section 11(2) of the Act provides the because of illness of the Tribunal or for any other reason that seems proper, the President by order published in the Gazette may direct that the particular annual determination is to be made on a later specified date.

Irrespective of the date the Determination is made it takes effect on and from 1 July each year.

The Tribunal considers this restriction is now unworkable and would seek the Legislature’s cooperation in removing the requirement to make the Determination by 1 June each year.

Since the 1998 amendments to the legislation the Tribunal has not once been able to meet the 1 June deadline and has annually sought, and received, an extension from the President of the Industrial Relations Commission. Two factors have combined to cause these delays. Firstly, the 1998 amendments to the Act were extensive and placed upon the Tribunal significantly greater responsibilities in making its determinations and the conditions applicable to them. The Tribunal fully supports this new approach as it provides greater transparency in Members’ entitlements and also provides Members with greater certainty in the use of the entitlements.

Secondly, the 1998 amendments to the Act included a new section 12A concerning the financial implications of the Tribunal’s Determinations. Section 12A requires the Tribunal, prior to making its Determination to obtain from the Secretary of the Treasury a submission as to the financial implications of the Tribunal’s Determination. The Tribunal cannot properly impose a deadline on the Secretary, but pursuant to Section 12A of the Act the Tribunal cannot make its Determination until the Secretary has provided his submission. In other words, the Tribunal is dependent on the Secretary for the making of the Determination. This is not considered to be a satisfactory position.

This unsatisfactory situation is exacerbated in election years. The State election is held every four years on the fourth Saturday in March. The results of the election may take some time to be finalised and, under these circumstances, the Tribunal finds it impossible to complete its review by 1 June in election years. As noted above, the Annual Determination completion date has been extended to 31 August this year to ensure sufficient time is provided to all Members, following the 2007 State election, the opportunity to provide submissions to the Tribunal.

All of these problems would be overcome by a simple amendment to the section 11(1) of the Act by removing ‘1 June’ and inserting instead the word 'annually'. This would allow the Tribunal to make its Determinations unfettered by circumstances beyond its control and in election years by unrealistic completion dates. It should be noted that irrespective of the completion date of the Determination its effective date would remain 1 July each year. In this regard, the Tribunal notes that the Federal Tribunal is only required to make an annual determination of Members entitlements that take effect from 1 July each year and, further, that in 2001 Parliament amended the Statutory and Other Offices Remuneration Act 1975 by removing the requirement that that Tribunal’s annual determinations be made by 31 August each year.

2.	REVIEW OF ADDITIONAL ENTITLEMENTS

General

Some submissions were received calling for substantial increases in a number of the allowances. Detailed reference was made to the cost of living and accommodation in Sydney in particular, and the increasing cost of fuel and the impact that was having on country Members given the long distances they travelled.

The Tribunal notes, however, dissatisfaction with the current level of allowances was not widespread and most submissions called for the application of movements in the Consumer Price Index (CPI) to be applied to the allowances. That is the course adopted by the Tribunal.

Electoral Allowance

The Tribunal has received a number of submissions seeking adjustments to the Electoral Allowance in line with movements in the CPI. This method is consistent with the Tribunal’s approach to adjusting this allowance in recent years. For this review the Tribunal has adopted its standard approach and increased the electoral allowance by 2.1 per cent, which is the increase through the year to the June quarter 2007.

Sydney Allowance

The Tribunal has reviewed the Sydney Allowance in accordance with its standard methodology and provided an increase in line with movements in the CPI of 2.1 per cent in the daily rate.

Logistic Support Allocation (LSA)

The Tribunal has reviewed the Logistic Support Allocation in accordance with its standard methodology and provided an increase of 2.1 per cent in the daily rate.

The Presiding Officers will maintain a list of approved items or services which can by purchased from the Logistic Support Allocation.

Committee Allowance

The purpose of this Allowance is to remunerate Members serving as Chairpersons on Committees for the extra time and effort required to carry out this role. In previous Determinations this allowance has been increased in line with Members’ salary increases.

Members' salaries were increased from 1 July 2007 by 6.8 per cent. In accordance with normal practice, therefore, the Committee Allowance will be increased by 6.8 per cent.

Electorate Mail-out Account (EMA)

The EMA has been adjusted to reflect enrolment statistics as of 27 April 2007 and are outlined in Appendix 4 of the Determination.

Reimbursement of Expenses for Charter Transport for Members of the Legislative Assembly

Electorate charter transport allowances for Members of the Legislative Assembly were last adjusted in 2004 when the Tribunal provided for an increase of 8 per cent. No further increase was provided following the 2005 and 2006 reviews.

Having reviewed this entitlement the Tribunal finds that no further adjustment is necessary at this time. Data provided by the Parliament on the actual use of this entitlement shows that Members spent considerably less than their existing allocation. The actual amounts and conditions applying in respect of charter transport allowances are specified in the annual Determination.

Travelling Allowances for Recognised Office Holders

The Tribunal has undertaken a review of the travelling allowances paid to Recognised Office Holders. The Tribunal’s Determination is based on those rates provided to New South Wales Public Servants and those deemed “reasonable” by the Australian Taxation Office (ATO). In both the New South Wales Public Sector and ATO guidelines, travel allowances are differentiated on the basis of destination and salary level of officer. The Tribunal has adjusted the membership of each Group to better reflect salary levels.

__________________________________________

PART TWO

SUMMARY OF 2007 DETERMINATION

Electoral Allowance	2.1 per cent increase
Sydney Allowance	2.1 per cent increase
Logistic Support Allocation	2.1 per cent increase
Electorate Mailout Account	No increase
Committee Allowance	6.8 per cent increase
Electorate Charter Allowance	No increase
Travel Allowances	Increase generally to public sector rates

Dated this day of 30 August 2007

The Honourable Justice R P Boland

THE PARLIAMENTARY REMUNERATION TRIBUNAL