Cook Islands Members of Parliament Remuneration Report
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Salaries and Allowances Tribunal Government of Western Australia Cook Islands Members of Parliament Remuneration Report “The labourer is worthy of his reward” 1 Timothy 5:18 (King James Version) September 2012 FOREWORD This work undertaken to prepare this Report was instigated by the Government of the Cook Islands and undertaken by my colleague and I with the support of the Parliament and Government of Western Australia. The cooperation between the peoples of the Cook Islands and Western Australia has a long history. For around 20 years, the Western Australian Parliament has been assisting the Cook Islands Parliament in a range of ways, usually through advice, but occasionally lending staff for short periods to help with events such as seminars or conferences. In the last five years, the parliaments of Western Australia and the Cook Islands have been officially twinned under the auspices of the Commonwealth Parliamentary Association. I am pleased to have been part of the ongoing history of cooperation with the Cook Islands and trust this Report makes a useful contribution to the good governance of parliamentary remuneration. The Report has been written in good conscience and in a spirit of fairness and equity to those who serve and have formerly served in the Parliament of the Cook Islands. The Report has the strength of having been written by impartial “outsiders”, however I acknowledge that it has been written without the cultural understanding and history which a local born Cook Islander might bring to it. I trust you will forgive any misconceptions which might have arisen from the perspective of an outsider. This report has been prepared on the premise that “The labourer is worth his reward”. Members of Parliament are not “employees” in the usual sense of that word, however they labour long and hard to fulfill important obligations under the democratic system of Government in the Cook Islands. The recommendations in this report are intended to respect the processes established in the Cook Islands to remunerate Members of Parliament and to fairly reward those who labour for the good government of the Cook Island people. W S (Bill) Coleman AM CHAIRMAN, SALARIES AND ALLOWANCES TRIBUNAL 19 September 2012 Cook Islands Members of Parliament Remuneration Report – September 2012 2 CONTENTS FOREWORD .............................................................................................................. 2 CONTENTS................................................................................................................ 3 ACKNOWLEDGEMENTS ....................................................................................... 4 EXECUTIVE SUMMARY ............................................................................................ 5 RECOMMENDATIONS .......................................................................................... 6 1.0 BACKGROUND ................................................................................................... 9 2.0 TERMS OF REFERENCE .................................................................................. 10 3.0 METHODOLOGY ............................................................................................... 11 3.1 Legislative Framework .................................................................................... 11 3.2 Mechanisms for Determining Remuneration ................................................... 11 3.3 Work of Members of Parliament ...................................................................... 12 3.4 Remuneration of Members of Parliament ........................................................ 12 3.5 Allowances Payable to Members of Parliament .............................................. 12 3.6 Superannuation .............................................................................................. 12 4.0 LEGISLATIVE FRAMEWORK ........................................................................... 13 4.1 Remuneration Tribunal Act ............................................................................. 13 4.1.1 Functions ............................................................................................................ 13 4.1.2 Public Offices under the Jurisdiction of the Tribunal .......................................... 14 4.1.3 Criteria to be given regard by the Tribunal ......................................................... 14 4.2 Civil List Act .................................................................................................... 15 5.0 MECHANISMS FOR DETERMINING REMUNERATION ................................... 17 5.1 Dual Powers to Recommend Remuneration ................................................... 17 5.2 Issues of Independence .................................................................................. 18 5.3 Frequency of Reviews .................................................................................... 19 6.0 WORK OF MEMBERS OF PARLIAMENT ......................................................... 20 6.1 Parliamentary Work ........................................................................................ 21 6.2 Constituency Work .......................................................................................... 21 6.3 Parliamentary Party Work ............................................................................... 22 7.0 REMUNERATION OF MEMBERS OF PARLIAMENT ....................................... 24 7.1 Salaries .......................................................................................................... 24 7.1.1 Determining the Quantum of the Salaries .......................................................... 27 7.1.2 Economic and Labour Market Data .................................................................... 29 7.1.3 Public Service Comparators ............................................................................... 30 7.2 Entitlements and Allowances .......................................................................... 33 7.2.1 Constituency Allowance ..................................................................................... 33 7.2.2 Constituency Travel ............................................................................................ 34 7.2.3 Travel and Accommodation in the Cook Islands on Official or Parliamentary Business .......................................................................................................................... 36 7.2.4 Travel and Accommodation outside the Cook Islands ....................................... 36 7.2.5 Office Allowance ................................................................................................. 36 7.2.6 Housing .............................................................................................................. 37 7.2.7 Transport Allowances ......................................................................................... 37 7.2.8 Telephones ......................................................................................................... 37 7.2.9 Clothing Allowance ............................................................................................. 37 7.3 Superannuation .............................................................................................. 38 7.3.1 Establishment of the Current Scheme ................................................................ 38 7.3.2 Impact of the Current Scheme on Former Members .......................................... 38 Cook Islands Members of Parliament Remuneration Report – September 2012 3 ACKNOWLEDGEMENTS We would like to thank the Cook Islands Government for their time and assistance in making staff available to provide the information on which this report is based. Our appreciation goes to the Hon Tom Marsters, Deputy Prime Minister, for his advice and assistance, and his Ministerial colleagues who provided documentation and verbal reports. The authors are particularly grateful to Mr Nga Valoa, Clerk of the Parliament, and his staff who provided a wide range of logistical support setting up meetings and interviews without which this report would not have been possible. The generosity of all concerned with their time and hospitality was very much appreciated. In acknowledging the assistance of Members of Parliament who made themselves available to us at short notice and whose courtesy and assistance we will always remember, we pay special tribute to the late Speaker of the Parliament, Sir Geoffrey Henry whose recent sudden passing has saddened all who have known him. Our deepest sympathy goes to his family, his parliamentary colleagues and to the people of the Cook Islands. W S (Bill) Coleman AM J C (John) Lukin CHAIRMAN EXECUTIVE OFFICER SALARIES AND ALLOWANCES TRIBUNAL OF WESTERN AUSTRALIA Cook Islands Members of Parliament Remuneration Report – September 2012 4 EXECUTIVE SUMMARY The Cook Islands Member of Parliament Remuneration Report was prepared at the request of the Cook Islands Government following a visit to Perth by the Hon Tom Marsters, Deputy Prime Minister, for the 2011 Commonwealth Heads of Government Meeting. The Report examines the legislative framework within which remuneration is determined in the Cook Islands and notes some overlap in the mechanisms for determination. The benefits of an independent remuneration process are discussed, in particular, the importance of maintaining the integrity of the process and the reputation of Members of Parliament. Concerns have been raised in the Report regarding