17641 LEGISLATIVE COUNCIL Thursday 10 September 2009 __________ The President (The Hon. Peter Thomas Primrose) took the chair at 11.00 a.m. The President read the Prayers. CRIMES (APPEAL AND REVIEW) AMENDMENT (DOUBLE JEOPARDY) BILL 2009 Bill received from the Legislative Assembly, and read a first time and ordered to be printed on motion by the Hon. Tony Kelly, on behalf of the Hon. John Hatzistergos. Motion by the Hon. Tony Kelly agreed to: That standing orders be suspended to allow the passing of the bill through all its remaining stages during the present or any one sitting of the House. Second reading set down as an order of the day for a later hour. PRIVILEGES COMMITTEE Reference The Hon. KAYEE GRIFFIN [11.02 a.m.]: I move: 1. That the Privileges Committee inquire into and report on the development of a Memorandum of Understanding between the President and the Commissioner of the Independent Commission Against Corruption [ICAC] covering the execution of search warrants by the ICAC on the Parliament House offices of members, with particular reference to: (a) the draft protocol recommended by the Privileges Committee in its Report No. 33 of February 2006 entitled "Protocol for execution of search warrants on members' offices", (b) the ICAC protocol entitled "Procedures for Obtaining and Executing Search Warrants", with particular reference to section 10, and (c) recent answers to questions on notice concerning the execution of search warrants at Parliament House provided by the ICAC to the Committee on the Independent Commission Against Corruption as part of its review of the 2007-2008 annual report of the Independent Commission Against Corruption. 2. That the Committee report by the last sitting day in November 2009. 3. That a message be forwarded to the Legislative Assembly informing it of the terms of reference agreed to by the House, and requesting that the Legislative Assembly Privileges and Ethics Committee be given a similar reference. Message forwarded to the Legislative Assembly advising it of the resolution. PETITIONS Marine Parks, Sanctuaries and Habitat Protection Zones Petition requesting a moratorium on the creation of all new proposed marine parks, sanctuaries and habitat protection zones and rejecting extensions to existing parks, sanctuaries and zones that further restrict fishing activities and removal of the National Parks Association report "The Torn Blue Fringe" for consideration by the Parliament, received from the Hon. Duncan Gay. Unborn Child Protection Petition requesting that the House uphold the sanctity of human life, defend the fundamental rights of unborn children and reject all attempts to initiate legislation that emulates the Victorian Abortion Law Reform Act 2008, received from the Reverend the Hon. Fred Nile. 17642 LEGISLATIVE COUNCIL 10 September 2009 BUSINESS OF THE HOUSE Suspension of Standing Orders: Presentation of an Irregular Petition Motion, by leave, by the Hon. Don Harwin agreed to: That standing orders be suspended to allow the presentation of an irregular petition from 599 citizens of New South Wales concerning the proposed sale of Malabar Police Station IRREGULAR PETITION Malabar Police Station Closure Petition opposing the closure of Malabar Police Station, received from the Hon. Don Harwin. BUSINESS OF THE HOUSE Suspension of Standing Orders: Presentation of an Irregular Petition Motion, by leave, by the Hon. Don Harwin agreed to: That standing orders be suspended to allow the presentation of an irregular petition from eight citizens of New South Wales concerning of Malabar Police Station IRREGULAR PETITION Malabar Police Station Staffing Petition requesting that staffing levels at Malabar police station be returned to 1999 levels, received from the Hon. Don Harwin. BUSINESS OF THE HOUSE Withdrawal of Business Private Members' Business items Nos 64, 65, 82, 90, 108, 110, 136, 163 and 191 outside the Order of Precedence withdrawn by Dr John Kaye. BUSINESS OF THE HOUSE Postponement of Business Business of the House Notice of Motion No. 1 postponed on motion by the Hon. Tony Kelly. BUSINESS OF THE HOUSE Suspension of Sessional and Standing Orders: Order of Business The Hon. ROY SMITH [11.11 a.m.]: I move: That standing and sessional orders be suspended to allow a motion to be moved forthwith that Private Members' Business item No. 227 outside the Order of Precedence, relating to the Parliamentary Remuneration Amendment (Salary Packaging) Bill 2009, be called on forthwith. Question put. The House divided. 10 September 2009 LEGISLATIVE COUNCIL 17643 Ayes, 30 Mr Ajaka Ms Griffin Ms Sharpe Mr Brown Mr Kelly Mr Smith Mr Catanzariti Mr Khan Mr Tsang Mr Clarke Mr Lynn Mr Veitch Mr Colless Mr Mason-Cox Ms Voltz Ms Cusack Reverend Dr Moyes Ms Westwood Ms Fazio Reverend Nile Ms Ficarra Ms Parker Mr Gallacher Mrs Pavey Tellers, Miss Gardiner Mr Pearce Mr Donnelly Mr Gay Ms Robertson Mr Harwin Noes, 4 Mr Cohen Ms Hale Tellers, Dr Kaye Ms Rhiannon Question resolved in the affirmative. Motion agreed to. Order of Business Motion by the Hon. Roy Smith agreed to: That Private Member's Business item No. 227 outside the Order of Precedence be called on forthwith. PARLIAMENTARY REMUNERATION AMENDMENT (SALARY PACKAGING) BILL 2009 Second Reading The Hon. ROY SMITH [11.20 a.m.]: I move: That this bill be now read a second time. The Parliamentary Remuneration Amendment (Salary Packaging) Bill 2009, which was introduced in the other place by the Hon. Richard Torbay, proposes to amend the Parliamentary Remuneration Act 1989, the Parliamentary Contributions Superannuation Act 1971, and the Constitution Act 1902. I congratulate the Hon. Richard Torbay on introducing this sensible legislation, the results of which will be cost neutral to the taxpayer. The proposed amendments are designed to provide members of Parliament with access to salary packaging arrangements similar to those available to public sector employees in New South Wales. It also removes some anomalous limits on the contributions to superannuation accounts that apply to members of Parliament. The intent of the bill is to provide a transparent new system for members to access some commonplace employment benefits in a straightforward and cost-effective way. I am advised that the bill will not provide any additional benefits to members that are not already available to the public sector and, furthermore, parliamentarians. Like everyone else, we will need to comply with the annual concessional contribution caps applying to employer contributions, which include salary sacrifice contributions. This bill comes to this Chamber with the full support of members in the other place. I commend the bill to the House. The Hon. TONY KELLY (Minister for Police, Minister for Lands, and Minister for Rural Affairs) [11.21 a.m.]: The Government supports the Parliamentary Remuneration Amendment (Salary Packaging) Bill 2009. Salary packaging arrangements are now standard features of employment in New South Wales, in both the private sector and the public sector. However, the Government's support for the bill is predicated on the proposed new arrangements being cost neutral. The Government is confident that it will create no additional 17644 LEGISLATIVE COUNCIL 10 September 2009 costs for taxpayers. I am advised that Western Australia has already introduced a broad salary packaging scheme for members of Parliament. While the scheme will enable parliamentarians to package their remuneration in ways that may be beneficial overall, it is important to emphasise that any costs of providing the benefits will be borne by members of Parliament. The bill will also ensure that an independent body—the Parliamentary Remuneration Tribunal—is charged with determining which non-superannuation benefits, such as cars and computers, are appropriate to be made available as part of a salary packaging arrangement. The bill also removes limits on the amounts that parliamentarians can salary sacrifice as superannuation contributions in the same way as limits were removed sometime ago for public sector employees in New South Wales. I am advised that allowing parliamentarians access to more flexible superannuation arrangements will not increase the Government's superannuation liabilities. I note that the bill will also amend section 13 of the Constitution Act to resolve any possible doubt that a member of Parliament who participates in a salary sacrifice scheme may be disqualified. The amendment puts beyond doubt that this disqualification will not be triggered when a member of Parliament enters into a salary sacrifice arrangement. The bill serves as an update to the remuneration structures for parliamentarians in New South Wales that are no different from those already widely available to many employees. I support the bill. Dr JOHN KAYE [11.23 a.m.]: I note with some concern that the Minister said the proposals in this bill will be cost neutral—that there will be no additional cost to taxpayers. If we take a narrow view and we put a ring around State tax revenue and outgoings, no doubt what he said is correct. If we take a broader societal view and we look at the cost to the Federal tax system and revenue, it could not be said that this proposal would be tax neutral. If it were tax neutral, there would be no benefit for individual parliamentarians. The bill will result in a transfer of wealth from the Federal tax base into the pockets of parliamentarians. Members should ask whether it is appropriate for them to continue enriching themselves through legislation that is passed in this Chamber. My colleague Ms Lee Rhiannon, who will lead for the Greens in debate on the Parliamentary Remuneration Amendment (Salary Packaging) Bill 2009, will inform the House that the Greens are concerned about equity issues. In general, salary sacrificing is available to those on relatively high incomes and it takes revenue away from those on relatively low incomes. It also takes revenue away from important social and government functions, which means less revenue is available for education, public health, public transport and services provided to people on lower incomes.