Nick Xenophon (SA, Independent) Share this | Link to this | Hansard source

I move:

That this bill be now read a second time.

I seek leave to table an explanatory memorandum relating to the bill.

Leave granted.

I table an explanatory memorandum and seek leave to have the second reading speech incorporated in Hansard.

Leave granted.

The speech read as follows—

This Bill follows the many recent reports of alleged misuse and excessive claims of Parliamentary travel entitlements. It is my view that we all need to reconsider how we view these entitlements: they are not something that is owed to us, but rather an expense to the Commonwealth and the taxpayers of Australia that we should use carefully and prudently.

The measures in this Bill seek to implement a new level of transparency and disclosure around the process for claiming travel entitlements. It includes two main measures: the need for Parliamentarians to provide explanatory statements in respect of certain types of travel claims, and providing the Commonwealth Ombudsman with the power to oversee claims and make recommendations to the Minister in this regard. It is important to note that this Bill does not seek to change the amount that can be claimed under entitlements or the circumstances under which it is appropriate to make a claim; it simply requires disclosure from MPs who do make a claim.

I note the process instigated by the Prime Minister for an independent review of Parliamentary entitlements by the President of the Remuneration Tribunal, John Conde AO, and former Secretary of the Department of Finance, David Tune AO, PSM will examine entitlements broadly and make recommendations accordingly. This Bill should be seen as a parallel process that complements the review.

Firstly, the explanatory statements in this Bill apply to travel claims other than those made for Parliamentary sittings or Parliamentary committee meetings or hearings. Under this Bill, when making a claim, the claimant will have to provide a short statement as to the purpose or purposes of the travel, the amount of time they spent out of their business day on those purposes, the times, dates and locations of the travel, the flight numbers and the details of any other forms of travel undertaken, the number of nights for which an entitlement is claimed, and the total amount of all aspects claimed.

In addition, the claimant must include a declaration that each entitlement has been claimed correctly.

Explanatory statements are also required in respect of charter travel that is undertaken at any time. The claimant will be required to provide the details of the travel (including time, date and location), and a statement as to why a charter rather than commercial travel services was used.

Finally, a statement will also need to be provided for family travel entitlements. In this case, the statement must include the dates, times and locations of the travel and its cost, as well as the details of the family members for whom it was claimed. This need not include names; a simple description of 'spouse' or 'dependent child' fits the criteria.

All of these statements must be provided to the Department within seven days of the end of the month in which the travel was undertaken. The Department must then publish these on its website within 14 days of receipt.

This will mean this information is available to the public. It brings in accountability where currently there is little, and transparency where there is none.

This Bill also introduces additional penalties that will apply if claims are made in excess of the relevant entitlement.

For the first two transgressions in a 12 month period, the claimant will have to pay back twice the amount that was incorrectly claimed. The current 25 per cent loading that is payable is clearly inadequate.

For any transgression after that in the 12 month period, they will have to pay back four times the amount.

Of course, in cases of fraud, a prosecution can be launched against the Senator or Member involved.

Paying back twice or even four times the amount claimed may seem harsh, but I believe we need greater deterrents than we have now. This is a fair measure, and will act as a proper disincentive to be lax, lazy – or worse, 'creative' - when it comes to claims.

Finally, the Bill extends the powers of the Commonwealth Ombudsman to oversee the claims process. The Department must provide the Ombudsman with quarterly reports of breaches, which the Ombudsman must then consider and provide a report to the Minister with relevant recommendations if needed. This must also include a statement that must be tabled in Parliament.

Further, this Bill sets the Ombudsman up as a sort of independent adjudicator. It gives the Ombudsman the power to investigate concerns from other MPs or members of the public, and also to investigate off its own bat. While the Ombudsman cannot make specific rulings, it will certainly be able to raise cases with the Department, who can then seek out payment from the relevant claimant.

Ultimately, this Bill is about greater transparency and accountability. It is about giving all Australians a better understanding of how Members of Parliament spend taxpayer money.

But it is also about changing the attitude towards these sorts of entitlements. My colleagues and I should be thinking carefully about how these benefits are claimed, and I hope the measures in this Bill will make all MPs and Senators give more thought as to whether what they are claiming is really fair.

I seek leave to continue my remarks.

Leave granted; debate adjourned.