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Members of Parliament (Standards) Bill
2010
Introduction Print
EXPLANATORY MEMORANDUM
General
The main purpose of this Bill is to promote public trust and confidence in
Members of the Parliament of Victoria by establishing a Statement of Values,
setting out a Code of Conduct, and establishing a Register of Interests for
Members of Parliament.
Clause Notes
PART 1--PRELIMINARY
Part 1 sets out the purposes of the Bill. It also defines a number of key words
and phrases and provides for the commencement of the Bill on 1 July 2010.
Clause 1 sets out the main purposes of the Bill, which are to promote
public trust and confidence in Members of Parliament by
establishing a Statement of Values for Members, setting out a
Code of Conduct for Members, and establishing a Register of
Interests for Members, and to repeal the Members of
Parliament (Register of Interests) Act 1978.
Clause 2 provides that the Bill comes into operation on 1 July 2010.
Clause 3 defines certain words and references in the Bill.
Subclause (1) contains the following definitions--
beneficial interest includes an interest in a private
superannuation fund;
Clerk means the Clerk of the Parliaments;
debt does not include a debt--
· owed to a member of the Member's family; or
· owed to an authorised deposit-taking institution; or
561505 1 BILL LA INTRODUCTION 23/3/2010
· owed to a person whose ordinary business includes the
lending of money; or
· arising from the supply of ordinary household or office-
related goods and services;
domestic partner of a person means--
· a person who is in a registered domestic relationship
with the person; or
· an adult person to whom the person is not married but
with whom the person is in a relationship as a couple
where one or each of them provides personal or
financial commitment and support of a domestic nature
for the material benefit of the other, irrespective of their
genders and whether or not they are living under the
same roof, but does not include a person who provides
domestic support and personal care to the person for fee
or reward or on behalf of another person or an
organisation;
family, in relation to a Member, means a Member's spouse,
domestic partner, child, grandchild, parent or grandparent, or any
other person reasonably considered to be a member of the
Member's family;
gift includes a transfer of property or the conferral of a financial
benefit, including hospitality, made without consideration or
without adequate consideration, but does not include a political
donation or a gift made by a member of the Member's family;
hospitality does not include hospitality provided to the Member
when the Member is acting in an official capacity;
income has the same meaning as assessable income has in the
Income Tax Assessment Act 1997 of the Commonwealth but
does not include parliamentary salaries and allowances, or
income from savings or investment accounts and public
superannuation funds;
listed corporation has the same meaning as in section 9 of the
Corporations Act;
Member means a person who is for the time being a member of
the Legislative Assembly or a member of the Legislative
Council;
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official capacity, in relation to a Member, means acting as, or on
behalf of, a Member or a Minister;
political donation has the same meaning as in the Electoral
Act 2002;
prescribed person means--
· a member of the Member's family; or
· a corporation or entity in which the Member has an
interest as an officer, a person with a controlling
beneficial interest or a member; or
· a creditor or debtor of the Member, except where the
debt is owed to or by a member of the Member's family,
an authorised deposit-taking institution or other persons
whose ordinary business includes the lending of money
or the supply of ordinary household or office-related
goods or services; or
· a donor of a gift to the Member;
private superannuation fund means a self managed
superannuation fund within the meaning of the Superannuation
Industry (Supervision) Act 1993 of the Commonwealth;
public superannuation fund means a superannuation fund that is
not a private superannuation fund;
Register means the Register of Interests established and
maintained under section 26;
return period, in relation to an ordinary return of a Member,
means--
· in the case of a Member whose last return was a primary
return, the period between the date of the primary return
and 30 June next following; and
· in the case of any other Member, the period between the
date of the Member's last ordinary return and 30 June
next following.
Subclause (2) provides guidance in relation to the definition of
domestic partner in subclause (1).
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PART 2--STATEMENT OF VALUES
Part 2 contains a Statement of Values, which provides a framework to guide
Members' conduct.
Clause 4 sets out seven values that Members should demonstrate when
carrying out their public duties: (a) serving the public interest,
(b) upholding democracy, (c) integrity, (d) accountability,
(e) respect for the diversity of views and backgrounds within the
Victorian community, (f) diligence, (g) leadership. The Code of
Conduct in Part 3 sets out the manner in which a Member
demonstrates the values in the Statement of Values.
PART 3--CODE OF CONDUCT
Part 3 contains the Code of Conduct that Members must observe when
carrying out their public duties. Sanctions for breaches are specified in
Part 5.
Clause 5 provides that Part 3 sets out the Code of Conduct that Members
must observe when carrying out their public duties and describes
the relationship between the Statement of Values in Part 2 and
the Code of Conduct.
Clause 6 provides that Members must make the performance of their
public duties their prime responsibility, exercise reasonable care
and diligence in performing public duties, and submit themselves
to the lawful scrutiny appropriate to their office.
Clause 7 provides that Members must treat all persons with respect and
have due regard for their opinions, beliefs, rights and
responsibilities.
Clause 8 outlines obligations for Members regarding conflicts of interest.
Subclause (1) provides that Members must avoid actual and
perceived conflicts of interest and declare any actual or perceived
conflict of interest when speaking in parliamentary proceedings,
including the proceedings of parliamentary committees.
Subclause (2) provides guidance on the circumstances where a
Member will have a conflict of interest. A Member has a conflict
of interest if the Member participates in, or makes a decision in
the execution of, the Member's office which furthers their private
interests or the private interests of a prescribed person.
Subclause (3) provides further guidance on conflicts of interest,
stating that a Member will not have a conflict of interest where
the Member or a prescribed person is affected as a member of the
public or as a section of the public.
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Clause 9 provides that except for parliamentary salaries and allowances,
Members must not use their position for profit.
Clause 10 makes provision in relation to Members' outside employment and
activities.
Subclause (1) provides that Members may engage in
employment, business and other activities, but must avoid actual
or perceived conflicts of interest from those activities.
Subclause (2) provides that Ministers must devote their
professional time and talents to carrying out their public duties.
Clause 11 provides that Members must not accept gifts, hospitality or other
benefits which create an actual or perceived conflict of interest,
or might create a perception of an attempt to influence the
Member in the exercise of his or her public duties.
Clause 12 provides that Members must exercise their influence as Members
responsibly and not use their influence to improperly further their
own interests or the interests of a prescribed person.
Clause 13 makes provision in relation to Members' use of public resources.
Subclause (1) provides that Members must comply with any laws
or applicable rules regarding the use of parliamentary allowances
and facilities.
Subclause (2) provides that Members must use all public funds
and resources provided to them as Members responsibly and only
for legitimate purposes.
Clause 14 makes provisions in relation to Members' personal conduct.
Subclause (1) provides that Members must ensure that their
conduct as Members does not bring discredit upon the
Parliament.
Subclause (2) provides that Members must act with honesty and
integrity in all official dealings and must not deliberately mislead
the Parliament or the public about any matter relating to the
performance of their duties.
Subclause (3) provides that Members must be fair, objective and
courteous in their dealings with the community and, without
detracting from the importance of robust public debate in a
democracy, their colleagues.
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Clause 15 makes provisions for the management of confidential and
personal information.
Subclause (1) provides that Members must not use confidential
information gained in the performance of their public duties to
further their own interests or the interests of a prescribed person.
Subclause (2) provides that Members must respect the
confidentiality of information they receive in the course of their
public duties.
Clause 16 provides that Part 3 is not intended to affect the operation of
Division 8 of Part II of the Constitution Act 1975. Division 8 of
Part II of that Act contains provisions relating to offices and
places of profit. The clause is included to prevent any potential
overlap between the operation of Part 3 and the operation of the
Constitution Act 1975.
PART 4--REGISTER OF INTERESTS
Part 4 contains provisions in relation to the Register of Interests.
Clause 17 provides that a person who becomes a Member after the Bill
commences must submit a primary return to the Clerk within
30 days after taking and subscribing the oath or affirmation as a
Member.
Clause 18 provides that a Member must submit an ordinary return to the
Clerk within 30 days of 30 June 2010 and within 30 days of
30 June for each subsequent year.
Clause 19 Subclause (1) provides that a primary return must be in the
prescribed form, and that it must include the following
information as at the date of the primary return--
· the source of any income that the Member has or
expects to have before 30 June in the following year;
· the name of any corporation, partnership or other body
in which the Member holds a beneficial interest, or in
which a private superannuation fund holds a beneficial
interest for the benefit of the Member, a description of
that interest including the number of any shares held
and, except in the case of a listed corporation, the
address of the corporation, partnership or body, and a
description of its objects or activities;
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· the location by suburb or town or, where that is not
applicable, the nearest town, of any land in which the
Member holds a beneficial interest, other than by way of
security for a debt, that is used as a primary or
secondary place of residence by any person;
· the address or, if there is no address, a precise
description of the location of any land, other than land
referred to in subclause (1)(c), in which the Member
holds a beneficial interest, other than by way of security
for a debt;
· the name of any corporation, partnership or other body
in which the Member holds office, a description of that
office and, except in the case of a listed corporation, the
address of the corporation, partnership or body, and a
description of its objects or activities;
· a description of any personal debt held by the Member,
including the name of the creditor;
· a description of any trust under which the Member
holds a beneficial interest or in respect of which the
Member is a trustee and a member of the Member's
family holds a beneficial interest, and a description of
the activities of the trust;
· in the case of a trust referred to in subclause (1)(g)--
· the information referred to in subclauses 19(1)(a)
to 19(1)(d), of which the Member is aware or
ought to be aware, as if a reference in those
subclauses to the Member were a reference to the
trust; and
· any other substantial interest held or received by
the trust, of which the Member is aware or ought
to be aware, whether of a pecuniary nature or
not, that would raise, or reasonably be seen to
raise, a material conflict between the Member's
private interest and their public duty;
· the name of an estate in which the Member is appointed
as executor and holds a beneficial interest, and a
description of that interest;
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· the name of any other organisation of which the
Member is a member or with which the Member is
otherwise associated, if a conflict of interest could arise,
or reasonably be seen to arise, because of that
membership or association;
· a description of any other interest that the Member has
where a conflict of interest could arise, or reasonably be
seen to arise, because of that interest.
Subclause (2) provides that a Member need only provide the
name and address of a person who manages a trust in a primary
return if the trust in which the Member holds a beneficial interest
is a blind trust.
Subclause (3) provides that the Member may also include the
name of any other organisation of which the Member is a
member or with which the Member is otherwise associated, if the
Member chooses to do so.
Subclause (4) provides that this clause is subject to clauses 22
to 24.
Clause 20 Subclause (1) provides that an ordinary return must be in the
prescribed form and contain certain information in relation to the
return period.
The information required to be included in an ordinary return is
the same as required in a primary return (clause 19) except that
the information relates to the period between the date of the last
ordinary return and 30 June of the following year.
In addition, the following information must be included in an
ordinary return--
· details of any gifts received by the Member, including
the name and address of the donor;
· details of any travel undertaken by the Member outside
of Victoria that is funded by a third person that was not
the State or a member of the Member's family.
Clause 21 provides that if, after a Member has submitted a primary return or
an ordinary return to the Clerk but before submitting an ordinary
return for the following return period, the Member becomes
aware of a material change in any information required to be
submitted under section 19 or 20, the Member must submit to the
Clerk, as soon as is practicable, a description in the prescribed
form of the material change.
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Clause 22 provides that a Member is not required to include the following
information in a return--
· a source of income if the total amount of income from
that source does not exceed the threshold amount for
income; or
· a beneficial interest in a particular corporation,
partnership or other body if the total value of the
beneficial interests held in that corporation, partnership
of other body does not exceed the threshold amount for
beneficial interests; or
· a personal debt with a particular creditor if the total
value of personal debts with that creditor does not
exceed the threshold amount for debts; or
· a gift from a particular source if the total value of gifts
from that source does not exceed the threshold amount
for gifts; or
· travel contributions from a particular source if the total
value of travel contributions received from that source
does not exceed the threshold amount for travel
contributions.
Subclause (2) provides that for the purposes of subclause (1), the
value of any income, beneficial interests or gifts held or received
by a trust referred to in clause 19(1)(g) or 20(1)(i) (other than a
blind trust) is to be taken into account in determining the total
value of income, beneficial interests or gifts.
Clause 23 provides details for the threshold amounts for the matters referred
to in clause 22 in the year ending 30 June 2011.
Clause 24 provides a mechanism for adjusting the threshold amounts by
reference to CPI.
Clause 25 requires the Clerk to notify Members of a CPI adjusted threshold
before 30 June 2012 and before 30 June for each subsequent
year.
Clause 26 imposes obligations on the Clerk in relation to the Register of
Interests.
Subclause (1) provides that the Clerk must establish and maintain
the Register of Interests.
Subclause (2) provides that the Clerk must enter information
submitted in the ordinary and primary returns in the Register.
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Subclause (3) prevents the Clerk from communicating any
information received by him or her under the Act or use that
information for any purpose other than in accordance with the
Act.
Clause 27 requires the Clerk to report a Member to the Presiding Officer of
the Member's House if: (a) the Member does not submit a return
within the required time, and after the Clerk has given the
Member a further reasonable time to submit the return it is still
not submitted, or (b) the Clerk reasonably believes that a Member
has submitted an inaccurate return and the return remains
inaccurate after the Clerk has given the Member a reasonable
opportunity to correct it.
Clause 28 prevents any person from publishing in the Parliament or outside
of the Parliament: (a) any information derived from the
information entered into the Register unless that information
amounts to a fair and accurate summary of the information
entered into the Register, or (b) any comment on the information
entered into the Register unless that comment is fair and
published in the public interest without malice.
Clause 29 provides that the Clerk must cause a return submitted under
Part 4 to be laid before each House of Parliament as soon as
practicable after receiving that return.
PART 5--GENERAL
Part 5 contains the consequences of a Member's failure to comply with
obligations relating to the Code of Conduct and the Register of Interests.
Clause 30 Subclause (1) provides that any wilful contravention of a
requirement under Part 3 or 4 is a contempt of Parliament and
may be dealt with accordingly.
Subclause (2) provides that in addition to any other punishment
that may be awarded by either House of the Parliament for a
contempt of the House of which the Member is a Member, the
House may determine and impose a fine on a Member of an
amount not exceeding 35 penalty units.
Clause 31 provides that if a Member does not pay his or her fine within the
time required by the House, the seat of the Member will become
vacant.
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Clause 32 empowers the Governor in Council to make regulations
prescribing any matters or things authorised or required or
necessary to be prescribed under the Act.
Clause 33 provides that the Members of Parliament (Register of
Interests) Act 1978 is repealed.
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