ETHICS COMMITTEE Report No. 123 Matter of privilege referred by the Speaker on 7 June 2012 regarding the failure to pay a fine for contempt of Parliament Introduction 1. The Ethics Committee (the committee) is a statutory committee of the Queensland Parliament established under section 102 of the Parliament of Queensland Act 2001 (the POQA). The current committee was appointed by resolution of the Legislative Assembly on 17 May 2012. 2. The committee’s area of responsibility includes dealing with complaints about the ethical conduct of particular members and dealing with alleged breaches of parliamentary privilege by members of the Assembly and other persons.1 The committee investigates and reports on matters of privilege and possible contempts of parliament referred to it by the Speaker or the House. 3. This report relates to a matter referred to the committee on 7 June 2012 regarding an alleged contempt of wilfully disobeying an order of the Assembly by the failure to pay a fine for contempt of Parliament. Background 4. On 17 May 2012, the Clerk advised the House of the following:2 Honourable members, I advise that on 12 May 2011 the Legislative Assembly found Mr Gordon Nuttall guilty of 41 instances of contempt and ordered that Mr Nuttall be fined $2,000 on each count and that the sum be paid within 12 months of 12 May 2011. I further advise that, as required, notice of the Legislative Assembly’s order of 12 May 2011 was served upon Mr Nuttall by the Sergeant-at-Arms on 19 May 2011. I table an affidavit of the Sergeant-at-Arms as to the service of documents and copies of documents served upon Mr Nuttall. Tabled paper: Affidavit of Service, dated 19 May 2011, served by the Sergeant-at-Arms on Mr Gordon Richard Nuttall at Wolston Correctional Centre and attachments A to D [117]. I further advise that, as of today’s date, payment has not been received. Finally, I table a copy of items of correspondence received by me from Mr Nuttall, solicitors acting on Mr Nuttall’s behalf and solicitors acting on behalf of Mrs Nuttall. Tabled paper: Letter, dated 14 May 2012, from Mr Gordon Richard Nuttall to the Clerk of the Parliament attaching a letter dated 30 April 2012 from Mr Nuttall to the Clerk regarding payment of fine [118]. 1 S.104B Parliament of Queensland Act 2001. 2 Queensland Legislative Assembly, Record of Proceedings (Hansard), 17 May 2012, at 64-65. Page 1 Tabled paper: Letter, dated 16 May 2012, from Richardson McGhie, solicitors to the Clerk of the Parliament, regarding the fine imposed on Mr Gordon Richard Nuttall [119]. Tabled paper: Letter, dated 17 May 2012, from Alex Mackay & Co., solicitors and attorneys, to the Clerk of the Parliament regarding the fine imposed on Mr Gordon Richard Nuttall [120]. 5. In his letter to the Clerk of the Parliament dated 30 April 2012, Mr Nuttall stated, ‘while I am mindful of my obligations to the Parliament following this decision, I wish to advise that due to various court proceedings by the CMC regarding sale assets and significant outstanding legal debts I am unable to pay the fine which was imposed.’ 6. Mr Nuttall also requested that the Parliament reconsider his submission made during his appearance at the Bar of the House on 12 May 2011, and take ‘…into account the severe punishment which has already been imposed upon [him] by way of imprisonment and forfeiture of assets.’3 The referral 7. On 7 June 2012, the Speaker referred the matter to the committee and made the following statement to the House:4 Honourable members, I refer to the Clerk’s advice to the House on 17 May 2012 that payment of fines for contempt imposed by the Legislative Assembly on 12 May 2011 had not been received from Mr Gordon Nuttall. I have considered this matter, including advice from Senior Counsel and the Clerk, and decided to treat the failure to pay the fines as a matter of privilege and refer the matter to the Ethics Committee. I will be requesting the Ethics Committee to investigate Mr Nuttall’s exact financial situation, so that the Legislative Assembly is aware of all relevant information before considering the options available. Definition of contempt 8. Section 37 of the POQA defines the meaning of “contempt” of the Assembly as follows: (1) “Contempt” of the Assembly means a breach or disobedience of the powers, rights or immunities, or a contempt, of the Assembly or its members or committees. (2) Conduct, including words, is not contempt of the Assembly unless it amounts, or is intended or likely to amount, to an improper interference with–– (a) the free exercise by the Assembly or a committee of its authority or functions; or (b) the free performance by a member of the member’s duties as a member. 9. Standing Order 266(22) provides wilfully disobeying an order of the House or disrupting the orderly conduct of the business of the House or a Committee as an example of contempt. Requests for further information 10. Upon receipt of the referral by the Speaker, the committee resolved to seek further information before determining whether to investigate the alleged contempt. 3 See: Queensland Legislative Assembly, Record of Proceedings (Hansard), 12 May 2011, at 1468-1474. 4 Queensland Legislative Assembly, Record of Proceedings (Hansard), 7 June 2012, at 662. Page 2 Advice from the Attorney-General 11. On 21 June 2012, the committee wrote to the Attorney-General to determine the state of Mr Nuttall’s financial affairs and sought information on the action taken by the State in relation to the confiscation of Mr Nuttall’s assets following convictions in July 2009 and October 2010. 12. The Attorney-General responded on 20 July 2012, (Appendix D) and advised that confiscation proceedings against Mr Nuttall pursuant to Chapter 2 of the Criminal Proceeds Confiscation Act 2002 were commenced by the State on instruction from the Crime and Misconduct Commission on 19 February 2007 and 24 September 2009. 13. Two Proceeds Assessment Orders were made against Mr Nuttall in the Supreme Court of Queensland on 12 July 2010 ($454,480.04 together with $42,000 in costs) and 28 March 2011 ($141,500.00 together with $5,000 in costs). When payment of those debts was not received, Enforcement Warrants were obtained for the seizure and sale of Mr Nuttall’s property at Woodgate.5 14. The sum of $721,694.79 has been paid to the State as a result of the sale of the Woodgate property which satisfied Court Orders against Mr Nuttall. The balance of approximately $37,600 was paid to the Public Trustee as the manager of Mr Nuttall’s estate. 15. Net proceeds of $668,769.79 (after reimbursement of legal costs and bailiff expenses) were paid to the Consolidated Fund. Advice from the Treasurer 16. The Attorney-General advised that the committee’s correspondence was referred to the Treasurer as the Minister responsible for the Public Officers Superannuation Recovery Act 1988 (the Act). The Treasurer wrote to the committee on 14 August 2012 (Appendix E) and advised that the State may recover some or all of the employer-sponsored component of a superannuation benefit if a public officer has been found guilty of a ‘prescribed offence’. 17. The Treasurer indicated he was seeking further advice as to whether any of the offences committed by Mr Nuttall were ‘prescribed offences’ for the purposes of the Act, and the quantum of any amount that might be recoverable by the state. However, the Treasurer considered it unlikely that the contempt of parliament charge would meet the required definition and therefore the outstanding fine may not be able to be included in any recovery action of this nature. Advice from the Public Trustee of Queensland 18. The committee received correspondence from the Clerk of the Parliament dated 5 July 2012, enclosing correspondence received from the Official Solicitor to the Public Trustee of Queensland, as the manager of Mr Nuttall’s estate (Appendix B). 19. The Public Trustee of Queensland is the manager of the estate of Mr Nuttall pursuant to Part 7 of the Public Trustee Act 1978.6 20. On 12 July 2012, The Public Trustee formally advised the committee that Mr Nuttall’s current debts total approximately $575,000, and the amount of ‘ready cash’ held by the Public Trustee to pay Mr Nuttall’s creditors is limited (Appendix C). 21. The Public Trustee advised the committee that a small interim payment from the current funds held by the Public Trustee could be made to all creditors and was in the process of seeking 5 The Woodgate property was auctioned by the bailiff on Saturday, 24 September 2011 for $760,000. Settlement was completed on Friday, 28 October 2011. 6 By virtue of sections 90 and 91 of the Public Trustee Act 1978, the Public Trustee is to manage the estate of certain prisoners which includes those serving a period of imprisonment for an indictable offence exceeding three (3) years. Page 3 evidence regarding Mr Nuttall’s creditors in order to form a view as to the amount properly due and owing to each party.7 22. The Public Trustee indicated that Mr Nuttall’s significant remaining asset is a property at Sandgate. However, the Public Trustee advised that a property settlement between Mr and Mrs Nuttall will need to be resolved before any significant funds will be received. The committee was further advised that once Mr Nuttall’s assets are liquidated and received by the Public Trustee there should be sufficient funds to pay all of Mr Nuttall’s debts including the fine to the Parliament.