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Annual Report for the year ended 30 June 2006

Parliamentary Service Commission Te Komihana O Te Whare Premata

Presented to the House of Representatives pursuant to Schedule 2, Clause 11 of the Parliamentary Service Act 2000

Annual Report for the year ended 30 June 2006 2 Parliamentary Service Commission Te Komihana O Te Whare Premata

Report of the Parliamentary Service Commission

About the Parliamentary Service Commission

The Parliamentary Service Commission was established in 1985 as a controlling body for the Parliamentary Service in the Parliamentary Service Act 1985. At that time, the main functions of the Commission were: • to exercise budgetary control over the Parliamentary Service; • to determine the size and organisation of the Parliamentary Service as well as the services to be offered; and • to supervise the administration of services performed by the Parliamentary Service.

The Commission was made up of members of government and opposition parties and was chaired by the Speaker.

A revision of the Act in 2000 resulted in the establishment of a governance structure for the Parliamentary Service similar to that of other public sector agencies. The General Manager became accountable to the Speaker, rather than to the Parliamentary Service Commission, and the Commission became a policy body advising the Speaker with no assets or appropriations of its own to directly administer. The Commission generally comprised members from all parliamentary political parties and continued to by chaired by the Speaker.

Annual reports of the Commission from 1986 to 2002 included the statement of accounts of the Parliamentary Service. For the annual report of the 2002/2003 year it was decided that the Parliamentary Service should separate its annual report from that of the Commission to better reflect the change of accountabilities under the revised Parliamentary Service Act of 2000. Therefore, starting from 2003, the Parliamentary Service Commission’s annual report is a record of the Commission membership, its committees and its principle deliberations.

Membership and Committees

The Parliamentary Service Commission generally comprises representatives from all parties represented in Parliament. The membership of the Parliamentary Service Commission from 1 July 2005 to the dissolution of Parliament on 11 August 2005 was:

Hon , MP (Chairperson)

Peter Brown, MP (representing the NZ First party) Hon , MP (representing the Leader of the House) John Carter, MP (representing the Leader of the Opposition) Rod Donald, MP (representing the Green party) Hon Peter Dunne, MP (representing the United Future party) Rodney Hide, MP (representing the ACT New Zealand party) , MP (representing the Labour party) , MP (representing the National party) Matt Robson, MP (representing the Progressive party) Tariana Turia, MP (representing the Mori party)

Following the General Election, the membership was:

Hon Margaret Wilson, MP (Chairperson)

Tim Barnett, MP (representing the Labour Party) Peter Brown, MP (representing the NZ First party) Hon Mark Burton, MP (representing the Leader of the House) John Carter, MP (representing the Leader of the Opposition) Rod Donald, MP (representing the Green party) until his death in November 2005 Rodney Hide, MP (representing the ACT New Zealand party)

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Keith Locke, MP (representing the Green party) after November 2005 Lindsay Tisch, MP (representing the National party) Tariana Turia, MP (representing the Mori party) Judy Turner, MP (representing the United Future New Zealand party)

The Progressive party is not currently represented on the commission as its sole MP, Hon , is precluded under the Parliamentary Service Act 2000 as he is a Minister of the Crown and does not represent either the Leader of the House or Leader of the Opposition on the Commission.

The House Committee is a committee of the Commission appointed under Schedule 2 clause 8 of the Parliamentary Service Act 2000. Its membership from 1 July to the dissolution of Parliament on 11 August 2005 was:

Ann Hartley, MP (Chair) Marc Alexander, MP Deborah Coddington, MP , MP Sue Kedgley, MP Pita Paraone, MP Pansy Wong, MP

Following the General Election, the membership was:

Hon Clem Simich, MP (Chair) Darren Hughes, MP Sue Kedgley, MP Pita Paraone, MP Pansy Wong, MP

Sub-committees

Security

John Carter, MP (Chair) Ron Mark, MP Lindsay Tisch, MP

Artworks

Hon David Benson-Pope, MP , MP (selected for membership after the General Election) John Key, MP

The Hon Mark Burton, MP, and John Carter, MP, were the Parliamentary Service Commission appointees to the Parliamentary Corporation pursuant to section 29(1)(c) of the Parliamentary Service Act 2000.

Six meetings of the Parliamentary Service Commission were held throughout the year ending 30 June 2006.

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Speaker's Direction to the Parliamentary Service The Commission considered ways of providing flexibility for Member's Support budgets. After receiving advice, the Commission agreed that in order to change the current administrative arrangements, the Speaker would need to issue a direction to the Parliamentary Service. In doing so, the Speaker would need to take into account any relevant advice and recommendations from the Commission as provided under Section 8 of the Parliamentary Service Act 2000. The first direction using this mechanism was issued in mid-June and provides for a more flexible approach in regard to the funding entitlements of members’ out- of-Parliament offices. Total funding to caucuses remains unchanged. This mechanism will be the authoritative way of introducing changes to members’ entitlements, and various other issues that members have raised are being progressed.

Out-of-Parliament Resourcing Flexibility Members have been seeking more flexibility in how support funding and staffing allocation for out-of-Parliament offices is allocated. The matter is complex and discussions were held on this topic throughout the year.

Review of the Parliamentary Travel, Accommodation, Attendance, and Communications Services Determination 2003 The Commission is in the process of reviewing matters covered by this Determination, which was issued in October 2003. Particular matters that were addressed include the international travel programme for members as funded by the Office of the Clerk, the use of the overnight accommodation entitlement, and dependent’s travel to Wellington. The first two matters remain under consideration. Agreement was reached on the third matter, and drafting instructions were issued to revise the determination.

The review is also considering whether the current determination adequately addresses the “Communications Services” component with its focus on telecommunications but not on other communications methods.

Parliamentary Appropriations Review Follow-up The second parliamentary appropriations review committee issued its report in November 2004 (this report is available at http://www.parliament.nz/en-NZ/Admin/Speaker/CorpDocs/). The Commission considered the issues and recommendations of that report, but did not agree with all the report recommendations. The Parliamentary Service was asked to develop proposals for the leasing, furnishing and equipping of out-of-Parliament offices of members. Whilst considerable work was done on this matter the Commission has not yet reached agreement on the next steps to take. Additional funding was obtained to address security risks and health and safety in out-of-Parliament offices. Proposals to upgrade access to the parliamentary network and computer services in out-of-Parliament offices were deferred for further consideration.

At the same time, however, progress has been made on the recommendations concerning security in the parliamentary complex, and upgrading various aspects of the security systems is well underway. Recommendations concerning training and development for members’ staff have been agreed, and funding for training and development is now available.

The arrangements for a third appropriations review committee to commence work was near completion by the end of June.

Members’ Advertising The Controller and Auditor-General issued the report Government and Parliamentary Publicity and Advertising in June 2005 (this report is available at http://www.oag.govt.nz/2005/govt- publicity/default.htm). The report was prepared in response to a number of requests for assurance about proposed advertising from departments and a parliamentary party; and complaints relating to parliamentary political party publicity.

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In response, the Controller and Auditor-General decided to undertake a review of how public funds were managed in these instances. The report concluded that current guidelines were unclear and produced inconsistent results, thereby making it difficult to establish the legitimacy of advertising undertaken by members and parliamentary parties. The report further expressed concern about the current arrangements used to determine how public funding was managed in both government and parliamentary publicity and advertising.

Although the Commission had been considering members’ and political parties’ advertising prior to the Controller and Auditor-General’s report and agreed the current system needed changing, it decided to defer further consideration until after the report was published. Following publication of the report, the Commission once again considered the arrangements concerning members’ and parliamentary parties’ advertising. A parliamentary party office managers’ group was charged with drafting new advertising rules that would reflect the agreement of all parties. Work by this group was still in progress at the end of June.

The Controller and Auditor-General is in the process of investigating members’ and parliamentary political parties’ advertising during the election campaign, and will report back in due course.

Conclusion The 2005/2006 year contained fewer Commission meetings than usual due to the General Election. I am pleased, however, with the diligence displayed by Commission members in dealing with complex issues and I thank members for that.

HON MARGARET WILSON, MP Speaker of the House of Representatives and Chairperson of the Parliamentary Service Commission

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