Tasmanian Government Submission Parliamentary Salaries and Allowances Tribunal 2013

November 2013

Table of Contents

Summary of Recommendations ...... 1 Basic salary ...... 1 Allowances ...... 1 Electorate offices and staff ...... 2 1 Introduction ...... 3 2 What is it that Members of Parliament do? ...... 4 2.1 Parliamentary work ...... 4 2.2 Electorate representation ...... 6 2.3 Engagement with a party or supporter base ...... 8 3 Other aspects of the role ...... 9 3.1 Public Scrutiny ...... 9 3.2 Media work ...... 9 3.3 Travel ...... 9 3.4 Administrative Roles ...... 10 3.5 Unusual ‘work conditions’ ...... 10 4 Requisite Skills ...... 11 5 The Government’s Wages Policy ...... 11 6 The Basic Salary...... 12 7 Mechanisms for future adjustment ...... 14 8 Allowances and benefits ...... 16 8.1 Motor Vehicle Allowance...... 17 8.2 Electorate Allowances ...... 18 8.3 Telecommunications Allowance ...... 18 8.4 Committee Sitting Fees ...... 19 8.5 Entertainment Allowance ...... 20 8.6 Away From Home Travelling Allowance ...... 20 8.7 Bass Strait Islands Travelling Allowance ...... 21 8.8 Taxi Allowance ...... 21 9 Electorate Offices ...... 21 9.1 Background...... 21 9.2 Funding ...... 23 9.3 Members’ Allocation ...... 23 9.4 Relationship between Electorate offices and other offices ...... 24 9.5 IT systems and Support ...... 25 9.6 Staffing ...... 26 9.7 Management of and support for electorate offices ...... 26 9.8 Conclusion ...... 27

Summary of Recommendations The salary and allowances payable to a Member of Parliament should reflect the work of a contemporary parliamentarian, and the knowledge, skill, expertise and professionalism required to function well in such as role. The remuneration needs to recognise the demands of office and that the role is full time, active public service.

The Government makes the following recommendations:

Basic salary  the quantum of increases permitted by the State Service Wages Policy, which apply to the majority of public servants, should also apply to movements in the basic salary for Members of Parliament (Recommendation 1)

 the most straight-forward adjustment mechanism is a defined link to a specified public sector salary level; so that the basic salary of a Member of Parliament will move in line with any variation to that reference salary (Recommendation 2)

 the basic salary should be increased by 2% (i.e. to $120 835 pa) with effect from 1 July 2014 (which is in line with the State Service Wages Policy) (Recommendation 3)

 the Tribunal should establish an appropriate reference link to a percentage of a salary classification in the General Stream of the Tasmanian State Service Award so that any future increases to the basic salary(after 1 July 2014) are determined by the increases that apply to that reference salary (Recommendation 4)

Allowances  the Motor Vehicle Allowance and the current adjustment mechanism, and the option to be provided with a fully maintained, private plated vehicle for official and private purposes in lieu of the allowance, is appropriate and should continue (Recommendation 5)

 the Electorate Allowance and current adjustment mechanism for it are appropriate and should continue (Recommendation 6)

 the current Telecommunications Allowance reimbursement arrangements be replaced with a fixed amount Telecommunications Allowance; with the quantum of the new

allowance to be determined following consultation by the Tribunal with the Clerks of the House of Assembly and the Legislative Council about the recent history of reimbursements paid and phone usage patterns (Recommendation 7)

 the current arrangements for Committee sitting fees are appropriate and should continue (Recommendation 8)

 the current arrangement for the Entertainment Allowance for the Premier, President of the Legislative Council and the Speaker of the House of Assembly is appropriate and should continue (Recommendation 9)

 the current arrangement for the Away From Home Travelling Allowance is appropriate and should continue (Recommendation 10)

 the current arrangement for the Bass Strait Islands Travelling Allowance is appropriate and should continue (Recommendation 11)

 the Taxi Allowance be discontinued (Recommendation 12)

Electorate offices and staff  following the 2014 State Election the entitlement to Electorate offices for Members of Parliament should be clarified and expressed in a documented Electorate Office Policy (Recommendation 13)

 the Electorate Office Policy should confirm that the House of Assembly is to manage all Electorate offices for its Members, the Legislative Council is to manage all Electorate offices for its Members, and the Department of Premier and Cabinet is to manage Ministerial offices only (Recommendation 14)

1 Introduction The Government considers that Members of Parliament should be appropriately remunerated in recognition of the value of their service to the community which involves a demanding level of work, involving parliamentary processes, community activity and disruption to private life.

The level of basic salary for a Member should reflect the work of a contemporary parliamentarian, and the knowledge, skill, expertise and professionalism required to function well in such a role. It needs to recognise the demands of office and that the role is full time, active public service.

The level of remuneration should recognise that being a Member of Parliament is a full time occupation, and that members are unlikely to be able to continue in their former occupations in conjunction with their service as a parliamentarian.

There are non-financial compensations and benefits available to Members, apart from the paid remuneration and allowances. Being a Member of Parliament is a position of prestige, leadership and responsibility in the community. It can foster considerable pride and a sense of accomplishment as Members have a significant role in the affairs of Tasmania and can facilitate real positive change in the lives of Tasmanians.

Some parliamentarians are engaged in specific leadership roles within the Parliament: for example as Ministers, the President of the Legislative Council, the Speaker of the House of Assembly, Parliamentary Secretaries, a Leader of the Opposition or a minority party, or the Leader for the Government in the Legislative Council.

However, given the terms of reference of the Inquiry by the Parliamentary Salaries and Allowances Tribunal 2013 and its focus on the determination of the basic salary of a Member (as provided for by Part 1 of Schedule 1 of the Parliamentary Salaries, Superannuation and Allowances Act 2012), this submission concentrates on the role of a Member of Parliament solely as an elected member representing a division of the House of Assembly or Legislative Council. The additional remuneration loadings and allowances that Members receive for undertaking other specific roles in the Parliament are outside the scope of the Inquiry and this submission.

2 What is it that Members of Parliament do? Recent reviews in other jurisdictions have described the functions of Members of Parliament. The role of a Member of the Tasmanian Parliament is broadly similar to that of members of other Australian parliaments. In recent times there have been some detailed assessments and evaluation of the work of parliamentarians in other jurisdictions.1

There is no job description or statement of duties for a Member of Parliament. It is considerably more than just paid employment. The role involves long hours; attending to people who often have challenging, serious needs or are facing difficult situations; dealing with sometimes demanding community and business leaders; and can entail intense and intrusive public scrutiny. A Member’s week is routinely challenging, busy and varied, whether in his or her electorate or at Parliament, and it’s not confined to 5 days.

A former Premier of Western Australia, the Hon Dr Geoff Gallop, described an extensive range of regular activities for a parliamentarian: “working with electors and organisations within the electorate, informing the electorate about important issues or initiatives, attending party meetings (conferences, electorate councils, branches, policy committees), attending parliamentary party meetings, participating in parliamentary debates, working on a parliamentary committee, developing a portfolio interest if they are a minister (or indeed a shadow minister), attending functions on behalf of the government (or opposition), issuing media statements or responding to the media... and the list goes on”2.

The work of a contemporary parliamentarian can be categorised into three components:

 parliamentary work;

 electorate representation; and

 engagement with a political party (or supporter base if an Independent).

There is a significant challenge for Members to balance their constituents’ expectations, parliamentary duties, party or supporter requirements, and personal and family lives.

2.1 Parliamentary work Members contribute to discussion and debate on the legislation and issues of public importance and public policy that are before the Parliament.

1 Including The Attributes, Role and Reward of a Backbencher in the Federal Parliament, Egan Associates November 2011; and the Review of Parliamentary Entitlements, Committee Report, Australian Government, April 2010 2 As noted in Gallop, G The role of a Member of Parliament, speech to the Australasian Study of Parliament Group (NSW Chapter), quoted in the Review of Parliamentary Entitlements, Committee Report, Australian Government, April 2010

As a parliamentarian, a Member is involved in:

 the scrutiny of bills and subordinate legislation;

 parliamentary debates on matters of significance to the State;

 parliamentary committees;

 holding Executive Government to account (if not a Minister or member of the Government); and

 promoting Tasmania and advocating on behalf of the State.

There is considerable preparatory work arising from the volume, controversy and complexity of legislation and policy issues for a Member to properly participate in parliamentary business; especially when matters of national significance are being played out in Tasmania – such as recent social reforms or industry transition related issues.

The rapid growth in readily available information and communication based technologies and social media has seen an increased requirement for Members to engage about parliamentary business with, not only the traditional media, but also a diverse range of individuals, stakeholders and members of issue-based groups which often extend well beyond the boundaries of their specific electorate or the State. Members are frequently required to respond to a substantial number of phone and written enquiries (maybe several hundred emails a week when a particularly contentious matter is being considered), tweets, social media blogs and articles in the mainstream media.

To properly meet their obligations, all Members need to devote a considerable period of time preparing for the business of the Parliament so they can contribute appropriately to the formulation of legislation and the development of public policy. This work preparatory includes:

 extensive background reading and research relevant to the issues before the Parliament, including committee work;

 understanding the content and intent of the legislation before Parliament which may include attending multiple briefings from government agencies and interested parties;

 preparation for speaking in the Parliament in debates, motions, and matters of public importance or electorate interest;

 if an independent or member of a non-government party, negotiating with the Government or other parties in determining positions on key issues coming before the Parliament;

 if a member of a party, participating in party caucus room discussion on policy and legislative initiatives; and

 managing communications within the electorate about parliamentary matters, both in canvassing views and informing the electorate of Parliament‘s decisions.

The work of committees has increased in recent times, especially for independent Members of the Legislative Council. Committee activities can take up much of a parliamentarian’s time, whether in Hobart or elsewhere around the State. The work can include consulting the general public and specific interested parties, research, discussion and debate about the evidence, analysis of evidence and reaching and reporting conclusions.

Being the chair of a parliamentary committee or inquiry can be onerous, and adds an extra dimension to the basic role as a member of a committee. This includes leading the committee’s deliberations, dealing with support staff in the preparation of any report, speaking on behalf of the committee to other Members including Ministers, the media or stakeholder groups.

As noted above, in addition to these formal parliamentary committees Members may also participate in meetings of their party caucus, informal committees, ad hoc advisory committees and lobbying consultations.

2.2 Electorate representation In his or her own electorate, a State Member of Parliament is expected to be a community leader; well-informed about government policy, regulatory and administrative issues, not only at a State level but also in respect of many Federal and local government issues. Constituents with whom the Member interacts not only expect him or her to be fully aware of matters before the Tasmanian Parliament but also have an understanding of the principal activities of the Australian Government and the operational role of local government in their electorate.

The provision of an adequately funded electorate allowance is an important component of a Member’s remuneration package to ensure appropriate electorate representation. The role of a Member in the electorate requires substantial involvement in, and commitment to, community activities and highlights the impact on his or her personal and family life.

While this is not unique to Tasmania, the close level of contact with Members to their electorates is an important and special feature of the way in which politics in Tasmania operates.

For Members of the House of Assembly, a consequence of the Hare Clark multimember preferential voting system using a rotating ballot paper is that candidates compete for their seats, not only against members of other political parties, but also against colleagues from their own party. This means that the concept of a "safe seat" as is seen in the lower houses of other jurisdictions does not apply in Tasmania to the same extent as other states. ·All Members in all divisions must provide service to their electorates assiduously in a businesslike manner and be accessible.

A Member serves his or her electorate in a number of ways.

 As a communication channel between members of the public and their Parliament and the Government, Members convey and interpret local public sentiment on issues, communicating local observations back to the Parliament, as well as presenting to the electorate significant matters of policy, ensuring constituents are aware of Government activities that may have a direct effect on them.

 As an advocate on behalf of their constituents, Members are often called upon to provide support and assistance to constituents with any personal or other difficulties they might be experiencing, especially in their interactions with the various tiers of government. This may be representing an individual, helping him or her seek a correction of some perceived administrative defect or resolve a dispute with a government entity; assisting a group of people through government processes; or advocating community interests and local causes in the Parliament.

 As a local dignitary or community leader in their electorates, Members attend many local events and functions or community group meetings in a leadership capacity. Many Members are active in a wide range of community organisations and are supporters of many, including service organisations, neighbourhood houses, cultural and sporting bodies, local hospitals, health care centres and nursing homes, schools, business or special interest groups.

In their electorates, Members are expected to be readily accessible to engage other community leaders and organisations, make presentations, visit schools, attend party meetings, handle constituent enquiries, speak to the media and keep themselves abreast of local developments.

They receive representations from individuals, significant employers, organisations, influential groups, telephone campaigners, delegations, and lobbyists seeking to influence public policy.

A Member’s electorate office is an essential feature of constituency work. It provides a focus for community engagement and a venue for nurturing community processes and activities. Members are really never off duty and when in the electorate attending to their own personal matters they are often approached by constituents seeking assistance and/or expressing a point of view. In the current electronic age, Members are constantly engaged with their constituents even when they are not physically in their electorates - whether by receiving emails or actively communicating directly with their constituents via social media or other means.

2.3 Engagement with a party or supporter base All the current Members of the House of Assembly and some in the Legislative Council belong to a political party. As a consequence they are actively involved in a wide range of party political activities.

Members (other than Independents) are involved with their political party, particularly in respect of policy development and through engaging with branches at Federal, State and constituent level. Involvement in branch or party meetings in the electorate contributes to informing the community of Government and party policy initiatives and provides a forum for Members to listen to the views of their direct supporters. Some Members will attend area/regional conferences, State and Federal Council meetings, party administrative committees and other policy formulating entities as requested.

Independent Members, although not having a political party support base, often have a network of supporters who in exchange for support and campaigning wish to engage the Member in discussions about public policy, community needs and development, and the work being undertaken by parliament.

All Members, whether affiliated with a party or not, are likely to need to have involvement in local activities and associated fundraising initiatives.

3 Other aspects of the role In addition to the three main categories of work - parliamentary, electorate and party-based - there are some critical features of the ‘job’ of a parliamentarian that differentiate it from regular paid employment.

3.1 Public Scrutiny Members of Parliament operate in a 24/7 media environment and this has increased the pace of the analysis and examination of parliamentary activity and the work of Members. In common with many other public figures throughout Australia, Members are subject to increasing public scrutiny – sometimes of their private as well as their public lives. Modern communications encourages and facilitates immediate public scrutiny of parliamentary and party discussions and decisions. Members can be expected to be available to comment on issues as they are evolving, often without any time to reflect on questions. The ability and constant requirement to deal with the media, mainstream and social, is a developing competency that is another factor in determining an appropriate level of remuneration.

3.2 Media work Members of Parliament have an active role in the mainstream media, including local newspapers and radio stations and other forums. Members often have a regular engagement with community radio, have a column in local newspapers and respond to frequent requests from the media.

On occasions depending on the issue Members may be asked to appear in television interviews, debate and discussion on issues of electorate, State or even national significance.

3.3 Travel In order to meet their electorate and parliamentary obligations, Members of Parliament are required to undertake extensive travel and often, if residing away from Hobart, spend a considerable number of days a year away from their home. During parliamentary sitting weeks Members will need to be in Hobart from Tuesday to Thursday. Committees may often sit on Mondays and Fridays as well. Many Members are required to travel on the day prior to sittings commencing and a number are unable to go home, directly following a sitting if it finishes late at night.

Members also undertake extensive travel in meeting with their constituents within their electorate, often this is weekend work.

3.4 Administrative Roles Members of Parliament do not escape the administrative activities that often accompany leadership roles, and they do not have a large support staff to assist. These activities include:

 responding to written correspondence by email or letter;

 responding personally to inquiries by phone;

 writing and making speeches at events and for Parliament;

 managing communications including media releases, social media postings, twitter responses and announcements in a 24/7 media environment;

 managing diary and invitations;

 dealing with more complex matters on which constituents have sought their personal support and assistance; and

 managing staff in both the electorate and at parliament offices.

3.5 Unusual ‘work conditions’ Some of the work conditions associated with the role of parliamentarian is very different to those available to other employed professional job holders. Apart from the long and erratic hours which frequently and unexpectedly impact on personal time, there is no entitlement to annual recreation, long service sick or types of leave and no access to workers’ compensation.

The tenure of a Member of Parliament is obviously regularly reviewed at relatively uncertain intervals, and performance assessment is in the hands of broad public opinion (and sometimes the reasons for losing office may have less to do with an individual Member’s performance than the performance of their party or the Government generally). However unlike general work contracts or awards there is no defined entitlement to severance pay to reflect this risk. For those wishing to re-enter the workforce, the transition can be challenging, and the absence of accrued annual and long service leave can make a period of readjustment even more difficult.

Departure from office can be sudden, for example in the event of an unexpected election result. Depending on how long they have spent in the Parliament, Members’ skills in former

occupations may well be out of date. At the same time, former members may find themselves perceived as ‘overqualified’ when trying to return to their former occupation due to the different skills they have developed while in Parliament, or potential employer’s views of them are ‘coloured’ by the political positions they adopted as parliamentarians.

All of these factors combine to mean that Members are subject to far less certainty regarding their employment than other members of the community.

4 Requisite Skills Given the variety of activities that a Member of Parliament is expected to undertake, he or she needs to possess a broad set of skills. These include:

 leadership skills;

 community representation skills;

 interpersonal skills;

 negotiation and influencing skills;

 debating skills;

 speaking in public;

 research and analytical skills;

 IT related skills;

 chairing skills; and

 knowledge of the way government works.

To be fully proficient as a Member of Parliament it would be usual for members to have a post- secondary or tertiary education or the equivalent experience in business or a profession prior to entering parliament.

5 The Government’s Wages Policy The Government’s State Service Wages Policy establishes the framework, negotiation parameters and quantum for salary increases applicable to the inner budget agencies of the public sector.

The Policy was last set in 2011. A statement of that Policy is: -

“The Tasmanian Government 2011 State Service Wages Policy is to provide appropriate remuneration to state service employees that reflect the Government’s current difficult budget position, changes in productivity, the efficient delivery of services to the Tasmanian community, the skills and experience of employees and ongoing workplace reform.

Any salary, allowances and/or conditions package increases (non productivity based increases) cannot exceed 2% per annum.

Increases beyond 2% per annum can only occur where genuine productivities are demonstrated, able to be realised and approved by Budget Sub Committee of Cabinet. The productivity component will be capped at an equivalent value of 0.5% per annum”.

The Government recommends that the quantum of increases permitted by the State Service Wages Policy, which apply to the majority of public servants, should also apply to movements in the basic salary for Members of Parliament. (Recommendation 1)

6 The Basic Salary The Issues Paper3 prepared by the Tribunal provides a concise history of how the basic salary for Members of Parliament has been determined since 1973.

The current basic salary for Members is $118,466 per annum. This was set from 1 July 2013. Table 1 shows how this salary relates to some other salaries that apply to offices within the State Service.

Table 1

Annual salary as Classification Typical Role at 1 November 2013 General Stream, Tasmanian The Manager of a work unit in an $102 976 pa State Service Award, Band 8 agency (base) Member of Parliament (basic) $118 466 pa Senior Executive Service Level The Manager of a Branch or small $118 939 pa 1 (base) Division General Stream, Tasmanian Major functional, policy, program $121 319 pa State Service Award band 9 specialist (base)

3 Review of Parliamentary Salaries and Allowances - Issues Paper, Parliamentary Salaries and Allowances Tribunal 2013, October 2013

Annual salary as Classification Typical Role at 1 November 2013 Senior Executive Service Level The Director of a Major Division $169 326 pa 3 (base) Senior Executive Service Level Deputy Secretary $203 895 pa 4 (base)

The Issues Paper also reflects accurately (and replicated in Table 2) that the basic salary paid to Members of the Tasmanian Parliament is the lowest paid to Members of Parliament in any Australian jurisdiction, despite the functions of those Members being essentially the same.

Table 2

Parliament Basic salary as at 1 July 2013 Commonwealth $195 130 pa NSW $146 251 pa Victoria $140 973 pa Queensland $194 630 pa South Australia $153 130 pa Western Australia $148 638 pa Northern Territory $138 953 pa ACT $125 259 pa Tasmania $118 466 pa Average excluding Tasmania $155 370 pa % differential from Tasmania 31.1%

This differential with other jurisdictions is significantly worse than that which applies generally to Tasmanian wages.

Chart 1 shows the Full-Time Adult Average Weekly Ordinary Time Earnings for different jurisdictions in May 2013 as published by the Australian Bureau of Statistics.

Those employed in the Australian Capital Territory had the highest weekly earnings at $1 702.00, followed by Western Australia at $1 644.80. Tasmania was the lowest at $1 265.70, and South Australia the next lowest at $ 1 282.30. The Australian average was $1 420.90, ie Tasmanian earnings were 89 per cent of the Australian average.

Chart 1

Source: ABS (2013)

Despite these comparisons the Government does not favour the adoption of a nexus with national or interstate salary levels. Generally these linkages have the potential to result in salary movements out of kilter with the local employment market, the Tasmanian public sector, and community expectations of appropriate levels of remuneration in a Tasmanian context.

Anecdotally the current community sentiment in Tasmania is that Members of Parliament are already adequately (if not more than adequately) rewarded for the work that they do.

Based on the nature of the work, and the time and personal commitment required of Members of Parliament, as described in the earlier sections of this submission, the Government considers that the current level of basic salary for Members should be maintained.

However, to ensure sensible relativity is preserved, from 1 July 2014 that salary should be varied in line with the Wages Policy that applies to the general public sector.

7 Mechanisms for future adjustment The Government considers that there should be a simple mechanism for future adjustment of the basic salary of Members of Parliament. The criteria on which such a mechanism should be based include:

 changes to the basic salary should maintain relativity with the salary movements that are applicable to the general public sector in Tasmania (which is the sector of the labour market most closely aligned to the work of Members of Parliament);

 the mechanism should be automatic in that it does not require direct intervention by the Members of the Parliament, such as via regular legislative amendment;

 the mechanism should be transparent and easy to understand and administer; and

 the determination of any increase should be easily achieved and cost effective, i.e. not require a large resource investment, such as the establishment of an ongoing remuneration tribunal or extensive independent analysis.

Given these criteria, the Government recommends that the most straight-forward adjustment mechanism is a defined link to a specified public sector salary level; so that the basic salary of a Member of Parliament will move in line with any variation to that reference salary. (Recommendation 2)

There are two sensible options – alignment with the General Stream of the Tasmanian State Service Award or with the salaries applicable to offices in the Senior Executive Service (SES).

The Government considers that the link be made with the General Stream of the Tasmanian State Service Award.

The reasons for this are:

 the General Stream of the Tasmanian State Service Award applies to 45 per cent of the Tasmanian State Service and covers those general non-specialist public servant occupations;

 any variations of the award are subject to negotiations with relevant unions and ratification by the Tasmanian Industrial Commission, and they are not at the sole discretion of the Government of the day;

 the ability of, or incentive for, a government to influence the outcome of variations in the Award to maximise the benefit to Members of Parliament is negligible given the flow on of any increase to a large number of public servants at a substantial cost, the requirement to seek agreement from relevant employee organisations and the close public scrutiny of any variation; and

 the much easier ability of a government to unilaterally vary the salaries paid to officers in the SES – these variations are not subject to negotiation or ratification by the Industrial Commission and the costs of any contrived increase would be less given the relatively small number of workers covered by the SES arrangements (for example, in recent times the Government unilaterally fixed the salaries for SES officers despite previously agreeing to an annual increase).

Given that the current basic salary for members of Parliament was set on 1 July 2013, the Government recommends that the basic salary be increased by 2% (i.e. to $120 835 pa) with effect from 1 July 2014 (which is in line with the State Service Wages Policy). (Recommendation 3)

The Government recommends that the Tribunal should establish an appropriate reference link to a percentage of a salary classification in the General Stream of the Tasmanian State Service Award so that any future increases to the basic salary (after 1 July 2014) are determined by the increases that apply to that reference salary (Recommendation 4)

The Tribunal in its Issues Paper does raise the possibility of supplementing these ‘linked’ increases with periodic reviews to check that the reference mechanism and the quantum of the basic salary are still relevant, and there have not been any unintended consequences.

The Government acknowledges that there are occasions when such a review may be thought necessary. For example, if the basic salary is linked to a salary classification in the General Stream of the Tasmanian State Service Award, there is the possibility that a major overhaul of the Award could see the removal of the reference salary classification (for example, a major award restructure occurred in 2008 when the Clerical and Administrative Award and others were combined into the Tasmanian State Service Award). However such changes usually encompass a translation process from the old to the new structure so that a further Tribunal review would not be necessary.

8 Allowances and benefits As part of its terms of reference the Tribunal was asked to review whether the entitlements of, and benefits provided to, Members of Parliament (other than the basic salary, additional salary, or superannuation) provided for in Schedule 2 of the Parliamentary Salaries, Superannuation and Allowances Act remain appropriate to the contemporary needs of the Members.

Certain of the allowances and benefits covered by Schedule 2 of the Parliamentary Salaries, Superannuation and Allowances Act are itemised in Schedule 6 of that Act. They are:

 Motor Vehicle Allowance;

 Electorate Allowance;

 Committee Sitting Fees;

 Telecommunications Allowance;

 Entertainment Allowance;

 Away From Home Travelling Allowance;

 Bass Strait Islands Travelling Allowance; and

 Taxi allowance.

Clause 2 of Schedule 2 also provides for certain other allowances and benefits to which Members are entitled, including staff, office accommodation, equipment (including the capital and recurrent costs of that equipment), facilities and other resources provided to assist a Member in the performance of his or her duties.

In relation to the allowances and benefits the Government provides the following comments.

8.1 Motor Vehicle Allowance Each Member of Parliament is entitled to be paid a Vehicle Allowance (currently $15 005 pa). However, Members may elect, in lieu of the allowance, to be provided with a fully maintained, private plated vehicle for parliamentary, electorate and private use, but not for commercial purposes. The standard of vehicle is that which is generally available to State Servants at SES Level 1. Members are responsible for the running costs of the vehicle when used outside Tasmania.

The amount of the Vehicle Allowance moves in line with any increase to the amount of the basic salary.

The Government recommends that the Motor Vehicle Allowance and the current adjustment mechanism, and the option to be provided with a fully maintained, private plated vehicle for official and private purposes in lieu of the allowance, is appropriate and should continue. (Recommendation 5)

8.2 Electorate Allowances The Electorate Allowance was reviewed comprehensively by the Second Committee of Review Inquiring into Allowances and Benefits provided to Members of the Tasmanian Parliament dated 21 August 2006. Following that report the amount of the Electorate Allowance was significantly increased and subsumed some other entitlements which were previously separate.

Electorate Allowances vary in relation to the geographical size and location of each electorate. The amount of each Electorate Allowance moves in line with any increase to the amount of the basic salary.

The Government considers that the Electorate Allowance and the current adjustment mechanism for it are appropriate and should continue. (Recommendation 6)

However, it should be noted that since 2006, the entitlement of each Member to an electorate office including one member of staff has become more established. Commentary on this development is provided at section 9 of the Submission

8.3 Telecommunications Allowance The Telecommunications Allowance is paid by way of reimbursement of –

 service and equipment charges for one telephone service installed in a Member’s home and 80% of all call charges applicable to that fixed line; and

 80% of all charges for a mobile phone.

The allowance in respect of a mobile telephone for the President of the Legislative Council, the Speaker of the House of Assembly, the Leader of the Opposition and any leader of a recognised non-government party is unlimited.

In its Issues Paper the Tribunal has sought comment, in light of recent trends such as towards ‘bundling’ of services and various ‘plans’ for both mobile and fixed line services, on whether it may be appropriate to replace the existing arrangements with a fixed monetary allowance, with Members to make their own arrangements.

The growth and increasing complexity of communications technology calls into question the continuation of this allowance as currently specified. Many people do not have a fixed line service at home these days, relying solely on their mobile service. This trend is likely to continue. Mobile devices are not just for voice communications, current smart phones have a mobile operating system with advanced computing capability and connectivity.

Members’ mobiles are currently on a whole-of-parliament mobile account. The administration of this is involved but provides cost savings, number portability, 24/7 service support and privacy along with other advantages to Members. Data cost aggregation across the entire account also has benefits. An invoice is raised quarterly to relevant Members for reimbursement of 20% of their mobile costs.

Land line costs are reimbursed based on a claim submitted by a Member. There is an issue with this approach as the Parliament is unable to pay bundled services as some service providers are unable to separate out bundled services. There are a few Members who cannot submit claims due to this. For instance, last year only 9 Members of the House of Assembly submitted claims. Most of the costs were on service and equipment rental with fairly minor call costs. With the increasing use of mobile phones most home lines are now used for internet use.

The Government recommends that the current Telecommunications Allowance reimbursement arrangements be replaced with a fixed amount Telecommunications Allowance; with the quantum of the new allowance to be determined following consultation by the Tribunal with the Clerks of the House of Assembly and the Legislative Council about the recent history of reimbursements paid and phone usage patterns. (Recommendation 7)

8.4 Committee Sitting Fees While participating in the work of a Parliamentary Committee a Member of Parliament is paid a daily sitting fee for each day on which the Member attends a summoned meeting of the Committee, according to the following scale:

 in the case of a chair of a committee, at the rate of 0.12% of the basic salary (currently $142 per day); and

 in the case of any other member of a committee, at the rate of 0.10% of the basic salary (currently $118 per day).

In its Issues Paper the Tribunal has sought comment on the adequacy of the entitlement to committee sitting fees, and in particular, whether there is merit in incorporating this entitlement into the basic salary.

The specific work required in preparing for committee work, such as background reading and research relevant to the issues, engagement with interested parties and analysing evidence and determining conclusions, may be considerable.

Chairs of committees have quite onerous roles in leading the work of the committee and its inquiries as well as involvement in and providing direction for any reports prepared on behalf of the committee.

Given that the amount of time that individual Members invest in committee work varies considerably, and that Ministers and other office holders (such as the President of the Legislative Council and the Speaker of the House of Assembly) do not generally participate in committee work.

The Government considers that the current arrangement of paying Committee sitting fees is appropriate and should continue, rather than the basic salary, applicable to all Members, being increased by some fixed amount. (Recommendation 8)

8.5 Entertainment Allowance The Premier, President of the Legislative Council and Speaker of the House of Assembly are entitled to an entertainment allowance based on a percentage of the basic salary; 12% for the Premier and 6% for the President and Speaker.

Given the expectation and requirement that the holders of these offices are able to host functions and provide appropriate hospitality to dignitaries and other visitors on behalf of the Parliament and the Tasmanian community generally, the Government considers that the current arrangement for the Entertainment Allowance for the Premier, President of the Legislative Council and Speaker of the House of Assembly is appropriate and should continue (Recommendation 9)

8.6 Away From Home Travelling Allowance This Away From Home Travelling Allowance is paid for expenses incurred while travelling on official parliamentary business. The rate of this allowance is calculated in accordance with the Travel Allowance and Meal Allowance components prescribed in the Tasmanian State Service Award.

The alignment of this entitlement with that applicable to the general public sector is appropriate and accords well with the Government’s view about how the basic salary should be treated.

The Government considers that the current arrangement for the Away From Home Travelling Allowance is appropriate and should continue. (Recommendation 10)

8.7 Bass Strait Islands Travelling Allowance A Member of Parliament travelling to the Bass Strait Islands on official Parliamentary business is entitled to an allowance equivalent to the reimbursement of expenses incurred.

The Government recommends that the current arrangement for the Bass Strait Islands Travelling Allowance is appropriate and should continue. (Recommendation 11)

8.8 Taxi Allowance In order to avoid the necessity for a ministerial driver to be on call, a Minister is entitled to an allowance by way of a taxi voucher.

The Government considers that it is sensible, where cost effective, for a Minister to travel in a taxi after a function or other official duty, rather than keep a ministerial driver on call. However, this should simply be a proper administrative practice, rather than a specified ‘allowance’.

The Government recommends the discontinuation of the Taxi Allowance. (Recommendation 12)

9 Electorate Offices

9.1 Background As noted in section 8, Clause 2 of Schedule 2 of the Parliamentary Salaries, Superannuation and Allowances Act also provides for Members of Parliament to be entitled to benefits such as staff, office accommodation, equipment (including the capital and recurrent costs of that equipment), facilities and other resources to assist them in the performance of their duties.

Given that these entitlements are not specified as quantifiable ‘allowances’ they probably fall outside of the scope of the Tribunal’s determination. However, the Government considers it is important to flag some aspects of the current arrangements and indicate future change is desirable.

An entitlement of a Member to an electorate office has evolved over time. It was during Paul Lennon’s term as Premier that the principle of ‘one electorate office per member’ crystallised. Prior to that there had been provision for non-Hobart based members to be provided with accommodation in their electorates. Often these offices were shared (e.g. non-government Members of the House of Assembly and Members of the Legislative Council in Henty House, Launceston) and included Government offices funded by the Department of Premier and

Cabinet (DPAC) on the North West Coast, which were shared by Members of Parliament or were party-based..

Hand in hand with the principle of ‘one electorate office per member’ was the establishment of an entitlement to one staff member (an electorate officer).

Although the principle in relation to office and staff support is established there currently is not a clear definition about the specifics of that entitlement – e.g. what are the features of a reasonable office, what facilities are considered appropriate, what costs are to be met by the Crown, which agency is responsible for managing and supporting the offices, and who is the decision maker about the fit-out, appropriateness of location, rent etc., transition arrangements when a Member loses his or her seat or their circumstances changed – for example a Member becomes a Parliamentary Secretary or Minister.

The entitlement to an electorate office and staff member needs to be agreed and clearly articulated. Matters that should be specified as part of the entitlement, or at least for which a minimum standard should be established, include:

 office size and facilities;

 quality of fit-out;

 furniture and equipment;

 IT equipment and support;

 Security;

 health and safety considerations; and

 signage.

Other aspects that also need clear definition include:

 funding;

 use of the Members Allocation;

 the relationship between electorate Offices, and Leaders offices and Minister’s offices;

 staffing responsibility; and

 overall management of electorate offices.

Some brief comments about some of these matters follow:

9.2 Funding When electorate offices became more prevalent in 2006, the following funding model was applied for new offices:

 establishment costs - $10 000;

 rent and running costs - $20 000; and

 staffing costs - $57 000 plus employment on-costs (for one FTE admin & clerical employee per office) – total of $70 000.

These funds were provided to Ministerial and Parliamentary Support Budget (Output 1.2) for Members of the House of Assembly (administered by DPAC); and to the Legislative Council (for staffing) and Legislature-General (for operational costs) for Members of the Legislative Council.

In relation to the offices for Members of the Legislative Council, in the past funds have been provided by the Council for one-off establishment costs ($10 000) and the recurrent cost of staffing ($70 000) as well as a recurrent consumables budget ($5 000). Funds for rent and outgoings (rates, water and sewerage, land tax) and electricity costs are provided to the joint parliamentary services entity, Legislature General ($20 000). Significant costs, such as data connection, IT support and casual staffing when an electorate officer takes leave, are not funded explicitly.

Current expenditure is variable depending on the terms and conditions contained in leases, the location of the office etc. A proper funding model needs to be developed which allows for approved arrangements without the need for regular supplementation.

9.3 Members’ Allocation When funding for electorate offices was first provided, there was an expectation that members (of the House of Assembly at least) would use their Members’ Research and Equipment Allowance (now called Members’ Allocation) to supplement these funds (then set at $10 000 pa but now $7 500 pa).

Like electorate offices the Members’ Allocation has evolved over time. The entitlement to the allocation has been by Government decision. It was not an allowance determined by the 2006 Committee of Review.

The change to the Allowance and the view that it should be used to supplement funding of the electorate offices meant that the scope of its legitimate use has also been widened over the years. Originally its intended use was for “research and support, or equipment relevant to assist Members in the performance of their duties”. Over time the Allowance was extended to include non-equipment items such as staffing and mobile phone costs. Currently Members may use the funds at their discretion as long as the use is to support activities associated with the performance of their duties as a Member of Parliament, however the Legislative Council generally doesn’t allow for these funds to be spent on staffing costs.

If the Members’ Allocation is maintained then the rules about its use to supplement funding for Electorate offices needs to be clearer, and there needs to be consistency between the two Houses of Parliament.

However another option, if Electorate offices are fully funded in appropriate budgets, would be to abolish the Members’ Allocation.

9.4 Relationship between Electorate offices and other offices The interrelationship between Ministerial (especial northern) offices and Electorate offices needs to be clearer.

The Tasmanian Greens currently share an office in Hobart (plus the northern members have individual offices in their electorates). The two southern based members are currently also Ministers, and have separate Ministerial offices in Hobart. The Hobart office also is part of the allocation to the Leader of the Greens as a party represented in the House of Assembly with more than four members (similar to the Leader of the Opposition). One of the southern based members has a separate Electorate office, but the other does not.

In addition to Electorate offices, both opposition parties have a Leader’s office based in Hobart. Very loosely, the funding has been determined in recent years to reflect the number of members of the House of Assembly in the opposition parliamentary party. The entitlement to a Leader’s office ceases if a parliamentary party falls below 4 Members.

The actual determination of the funding entitlement for a Leader’s Office is not clear, although as mentioned there is a vague link to the size of the relevant parliamentary party.

In sorting out the policy and funding entitlement for Electorate offices it would be sensible to set a funding policy for Leaders’ offices. In setting such a funding policy it is necessary to

recognise that currently the Leader of the Liberal Opposition (as the largest opposition party) is located in Parliament House and so does not incur rent charges.

9.5 IT systems and Support The provision of IT support by the IT support groups in Parliament House and DPAC should be reviewed and if necessary clarified. Currently IT support for Electorate offices of Government Members of the House of Assembly is provided by DPAC.

IT support for electorate offices of Members of the Legislative Council, the Liberal Members of the House of Assembly, including the Opposition’s office at Parliament House, Greens electorate offices including the party’s main office at Macquarie Street, and the Speaker of the House of Assembly is provided by the Parliament.

DPAC provides House of Assembly members from the Government party and Electorate office staff with suitable IT hardware and software (often funded from the Members’ Allocation). Related IT support is shared between DPAC and Parliament House depending upon whether the Member of the House of Assembly is a Minister or backbencher.

The Parliament provides:

 Legislative Council members and electorate office staff with suitable IT hardware and software drawn from the Legislative Council member’s Resource Allocation (Members requirements) or the Legislative Council budget (electorate office staff) managed through the Legislative Council; and

 non-Government Members of the House of Assembly and all current Members of the Legislative Council and their electorate office staff access via the Parliament House LAN to:

- the Parliament House electronic mail system;

- internet services;

- networked electronic diary facility;

- Parliament House databases, including Legislation, Bills, Hansard and the Parliamentary Library’s Information System; and

- news clipping services.

The support and coverage arrangements provided by DPAC’s Information Systems Branch and the Parliament House IT support group are different. In determining the future management and funding of electorate offices it is important to consider the appropriate systems to support Members.

9.6 Staffing An electorate officer provides staffing support to each Member of Parliament, but the employment arrangements are different between Members of the Legislative Council and Members of the House of Assembly. Legislative Council electorate office support staff are employed by the President of the Legislative Council under section 4 of the Parliamentary Privilege Act 1898. The appointments are sessional or temporary in contrast to permanent appointments of parliamentary staff which are made under section 3 by the Governor-in- Council. The term of appointment for sessional or temporary staff is limited to the term of the relevant Member but in effect the employment arrangement can be terminated at any time.

Staff engaged to support Members of the House of Assembly are appointed by the Premier using the Royal Prerogative or seconded from the State Service. Similarly, terms are limited to that of the Government and not necessarily the Member for whom they work. Depending upon the decisions made in relation to which agencies will in the future manage and support electorate offices consideration should be given to which agencies should employ support staff and manage the associated funding.

9.7 Management of and support for electorate offices The current arrangements lead to a confusion of roles and responsibilities and funding requirements between the Parliament and the Executive. There needs to be a clear separation of the Executive from the Parliament.

The current arrangements are that DPAC manages and supports the offices of Members of the House of Assembly and funds are provided as part of the Ministerial and Parliamentary Support Budget – output 1.2 (support for other Members). However the Office of the Leader of the Opposition, because of its location at Parliament House, is partly funded by Parliament House.

The offices for Members of the Legislative Council are managed and supported by the Council, but funded as part of the Legislative Council and Legislature-General budgets.

9.8 Conclusion The Government recommends that following the 2014 State Election the entitlement to Electorate offices for Members of Parliament should be clarified and expressed in a documented Electorate Office Policy. (Recommendation 13)

The Government recommends that the Electorate Office Policy should confirm that the House of Assembly is to manage all Electorate offices for its Members, the Legislative Council is to manage all Electorate offices for its Members, and the Department of Premier and Cabinet is to manage Ministerial offices only. (Recommendation 14)

This model separates the responsibilities of the Executive from those of the Parliament, but requires the House of Assembly to manage accommodation outside of Parliament House which it currently does not do. There may also be issues that emerge when new Ministers are appointed (particularly in the North of the State) when an electorate office may become a Ministerial office or vice versa and the management and funding responsibility may need to change.