ASSEMBLY MEMBERS AND STATUTORY OFFICERS (REMUNERATION AND OTHER ENTITLEMENTS) AMENDMENT BILL 2015 Second Reading Speech

Northern Territory Second Reading Speeches

ASSEMBLY MEMBERS AND STATUTORY OFFICERS (REMUNERATION AND OTHER ENTITLEMENTS) AMENDMENT BILL 2015

(This an uncorrected proof of the daily report. It is made available under the condition that it is recognised as such.)

Madam Speaker, I move that the bill now be read a second time. The purpose of the bill is to amend the Assembly Members and Statutory Officers (Remuneration and Other Entitlements) Act to provide the NT Remuneration Tribunal with the power to determine the salaries of members of the legislative Assembly, including office holders. Under the act as it currently stands, movements in MLA salaries are directly linked to movements in NT public sector wages. The Remuneration Tribunal, in its 2012 report on MLA entitlements, noted the current legislative framework removes the capacity for independent assessment of parliamentary remuneration levels based on the actual duties and responsibilities of Assembly members.

The tribunal commented that this has had the effect of devaluing the base remuneration of Assembly members and office holders by not taking into account relevant considerations, and this will continue to be exacerbated in the future due to the compounding effect of increases year after year, which do not reflect actual work considerations. The tribunal recommended that these provisions in the act be repealed and replaced with a power for the tribunal to determine basic salary and additional salary of office for MLAs.

It also recommended the legislation provide that the tribunal cannot determine basic salary to be more than that to which a federal MHR is entitled, less a fixed amount to be nominated in the act. This would establish a salary ceiling which the tribunal cannot exceed in determining a basic salary. This is a variation on the nexus which existed in earlier legislation whereby MLAs were entitled to a basic salary equivalent to that of a federal member of the House of Representatives, less $3000.

The tribunal reiterated its recommendation in its 2013 report, adding that rather than a fixed dollar differential in the legislation it now favoured the use of a fixed percentage differential between an MHR and an MLA basic salary. The government has given careful consideration to the independent tribunal’s recommendation and has decided to accept it. Expert advice from Mercer, a division of Marsh Mercer Holdings (Australia) Pty Ltd, were sought as to an appropriate formula for establishing a proportionate relationship between a basic salary of a member of the House of Representatives and that of a Northern Territory MLA. The report recommended a range of different areas which will be investigated.

I will be pleased to make this report available to the Leader of the Opposition and the independent member for Nelson if they wish. It is not government’s position but an independent report. Accordingly, this bill places the provisions which link MLA salary movements to NTPS salary movements, with the power for the independent remuneration tribunal to determine basic salary for NT parliamentarians up to a maximum level of 80% of a federal MHR basic salary.

This cap is an important governance measure to ensure that NT MLA salaries remain at a reasonable level, compared to salaries in other jurisdictions. The tribunal will also have the power to determine additional salary of office for MLA office holders, and to determine the list of office holders who are entitled to additional salary.

Another important governance measure in this bill is a requirement for the tribunal to take into account the following matters when determining basic salary or additional salary of office for Assembly members: the nature of the duties and obligations of an Assembly member or office holder; Consumer Price Index movements; public sector wage policies; and parliamentary salaries in other Australian jurisdictions. This list is not exclusive and the tribunal may take into account other matters it considers relevant to parliamentary remuneration sittings.

Transitional provisions have been put in place to ensure that existing parliamentary salaries remain in place after the new legislation has commenced until such time as the tribunal’s first determination on basic and additional salary of office comes into effect.

I commend this bill to honourable members and table the explanatory statement to accompany the bill.

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