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Local Government Electoral (Implementing Stage 1 of Belcarra) and Other Legislation Amendment Bill 2018

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Local Government Electoral (Implementing Stage 1 of Belcarra) and Other Legislation Amendment Bill 2018 Local Government Electoral (Implementing Stage 1 of Belcarra) and Other Legislation Amendment Bill 2018 Report No. 7, 56th Parliament Economics and Governance Committee April 2018 Economics and Governance Committee Chair Mr Linus Power MP, Member for Logan Deputy Chair Mr Ray Stevens MP, Member for Mermaid Beach Members Ms Nikki Boyd MP, Member for Pine Rivers Mr Sam O’Connor MP, Member for Bonney Mr Dan Purdie MP, Member for Ninderry Ms Kim Richards MP, Member for Redlands Committee Secretariat Telephone +61 7 3553 6637 Fax +61 7 3553 6699 Email [email protected] Technical Scrutiny +61 7 3553 6601 Secretariat Committee webpage www.parliament.qld.gov.au/egc Acknowledgements The committee acknowledges the assistance provided by the Department of Local Government, Racing and Multicultural Affairs. Local Government Electoral (Implementing Stage 1 of Belcarra) and Other Legislation Amendment Bill 2018 Contents Abbreviations ii Chair’s foreword iii Recommendations iv Points of clarification v 1 Introduction 1 1.1 Role of the committee 1 1.2 Inquiry process 1 1.3 Policy objectives of the Bill 1 1.4 Government consultation on the Bill 2 1.5 Should the Bill be passed? 2 2 Background to the Bill 3 2.1 Legislative framework 3 2.2 Operation Belcarra 3 2.3 Queensland Ombudsman 4 3 Examination of the Bill 5 3.1 Prohibition on donations from property developers 5 3.1.1 Overview of proposed change 6 3.1.2 Issues raised during the inquiry 9 3.2 Managing councillor conflicts of interest and material personal interests 19 3.2.1 Declaring a conflict of interest or a material personal interest at a meeting 19 3.2.2 Vote to determine conflict of interest 24 3.2.3 Duty to report a councillor’s conflict of interest or material personal interest 27 3.2.4 Recording conflicts of interest and material personal interests 30 3.2.5 Prohibition on influencing another councillor or a council employee 30 4 Compliance with the Legislative Standards Act 1992 32 4.1 Fundamental legislative principles 32 4.1.1 Rights and liberties of individuals 32 4.2 Explanatory notes 36 Appendix A - Submitters 37 Appendix B - Witnesses at public briefing and public hearing 39 Appendix C - Recommendations from the Belcarra Report 40 Appendix D - Ombudsman opinions and recommendations 45 Appendix E – Offences and penalties under the Bill 46 Statement of reservation 47 Economics and Governance Committee i Local Government Electoral (Implementing Stage 1 of Belcarra) and Other Legislation Amendment Bill 2018 Abbreviations Belcarra Report Operation Belcarra: A blueprint for integrity and addressing corruption risk in local government Bill Local Government Electoral (Implementing Stage 1 of Belcarra) and Other Legislation Amendment Bill 2018 CCC Crime and Corruption Commission COB Act City of Brisbane Act 2010 committee Economics and Governance Committee department Department of Local Government, Racing and Multicultural Affairs Electoral Act Electoral Act 1992 ECQ Electoral Commission Queensland FLP fundamental legislative principle HIA Housing Industry Association LACSC former Legal Affairs and Community Safety Committee LG Act Local Government Act 2010 LGE Act Local Government Electoral Act 2011 LS Act Legislative Standards Act 1992 local government meeting a meeting of the local government or its committees Ombudsman Queensland Ombudsman PCA Property Council of Australia QLS Queensland Law Society UDIAQ Urban Development Institute of Australia Queensland ii Economics and Governance Committee Local Government Electoral (Implementing Stage 1 of Belcarra) and Other Legislation Amendment Bill 2018 Chair’s foreword This report presents a summary of the Economics and Governance Committee’s examination of the Local Government Electoral (Implementing Stage 1 of Belcarra) and Other Legislation Amendment Bill 2018. The committee’s task was to consider the policy outcomes to be achieved by the legislation, as well as the application of fundamental legislative principles – that is, to consider whether the Bill had sufficient regard to the rights and liberties of individuals, and to the institution of Parliament. The committee heard from stakeholders who had significant concerns that some donations benefited, or at minimum there was the perception that some donations benefited, one group over another. As one of the contributors to the inquiry noted, perceptions of our democratic system are vitally important. Although this Bill is the first step in implementing the recommendations of the Belcarra Report regarding local government, it rightly looks at what parts should also apply to the state level. With New South Wales acting to ban donations from property developers at the local and state government levels because of the real risks of corruption, it is important that Queensland do the same. I think all submitters and witnesses to the inquiry would agree that there will be a point in the future where Queensland could face the same challenges as New South Wales. On behalf of the committee, I thank those individuals and organisations who made written submissions and appeared at the committee’s hearings. I also thank our Parliamentary Service staff and the Department of Local Government, Racing and Multicultural Affairs for their assistance. I commend this report to the House. Linus Power MP Chair Economics and Governance Committee iii Local Government Electoral (Implementing Stage 1 of Belcarra) and Other Legislation Amendment Bill 2018 Recommendations 2 The committee recommends the Local Government Electoral (Implementing Stage 1 of Belcarra) and Other Legislation Amendment Bill 2018 be passed. 12 The committee recommends that the Department of Local Government, Racing and Multicultural Affairs and the Department of Justice and Attorney-General work with the Electoral Commission Queensland to develop examples of what is a property developer and a close associate, and what constitutes ‘regularly’ in the context of making relevant planning applications, to assist affected parties and the Electoral Commission Queensland and the courts in determining the application of the proposed legislation. 17 The committee recommends the Bill be amended to insert a purpose statement in the Electoral Act 1992, similar to the proposed purpose statement in the Local Government Electoral Act 2011. iv Economics and Governance Committee Local Government Electoral (Implementing Stage 1 of Belcarra) and Other Legislation Amendment Bill 2018 Points of clarification Point of clarification 1 18 The committee seeks advice from the Minister during his second reading speech regarding an indicative timeframe for the commencement of the provisions relating to prohibiting donations from property developers, should the Bill be passed. Point of clarification 2 24 The committee seeks clarification from the Minister during his second reading speech regarding the operation of the provisions regarding conflicts of interest and material personal interests (proposed new sections 177C and 177E of the City of Brisbane Act 2010 and 175C and 175E of the Local Government Act 2009) as they relate to ordinary business matters and events such as workshops and briefings, and the advice from the Department of Local Government, Racing and Multicultural Affairs regarding the application of the new offences for a councillor influencing or attempting to influence another councillor outside of a local government meeting. Point of clarification 3 30 The committee seeks clarification from the Minister during his second reading speech regarding the process for determining if a councillor does in fact have a material personal interest following another councillor raising a belief or suspicion that the councillor has an undeclared material personal interest. Point of clarification 4 35 The committee seeks clarification from the Minister in his second reading speech regarding the rationale for different penalties for failing to properly disclose a conflict of interest and failing to properly disclose a material personal interest (in the absence of aggravating circumstances). Economics and Governance Committee v Local Government Electoral (Implementing Stage 1 of Belcarra) and Other Legislation Amendment Bill 2018 1 Introduction 1.1 Role of the committee The Economics and Governance Committee (the committee) is a portfolio committee of the Legislative Assembly.1 The committee’s areas of portfolio responsibility are: • Premier and Cabinet, and Trade • Treasury, and Aboriginal and Torres Strait Islander Partnerships, and • Local Government, Racing and Multicultural Affairs.2 The committee is responsible for examining each bill in its portfolio areas to consider the policy to be given effect by the legislation and the application of fundamental legislative principles.3 1.2 Inquiry process The Local Government Electoral (Implementing Stage 1 of Belcarra) and Other Legislation Amendment Bill 2018 (the Bill) was introduced into the Legislative Assembly and referred to the committee on 6 March 2018. The committee was required to report to the Legislative Assembly by 23 April 2018. A previous version of the Bill was introduced into the 55th Parliament on 12 October 2017, and referred to the former Legal Affairs and Community Safety Committee (LACSC). The former LACSC had not completed its inquiry into the 2017 version of the Bill when the Parliament was dissolved on 29 October 2017. The 2017 Bill lapsed when the 55th Parliament was dissolved. During its examination of the Bill, the committee: • invited written submissions from the public, identified
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