Belcher Review said system open to abuse
The evolution of ad hoc allowances for Federal MPs led to the 2010 review of parliamentary entitlements, known as the Belcher Review.
It found a mishmash of allowances – from electoral to travel – which had grown more complex and harder to police.
“The committee observed a system of entitlements derived from a number of sources which, over time, has become less transparent as the number and diversity of benefits provided to senators and members have increased," the report found.
The Belcher review, most of which was not adopted by federal parliament, said the current complex system of federal parliamentary entitlements was open to potential abuse.“Many of the entitlements lack clear boundaries and there are many shades of grey that can contribute to inadvertent or deliberate breaches of the entitlement rules - the consequences of which can damage the reputation of individual parliamentarians and the institution of parliament," it found.
It attempted to streamline the system by scrapping the stand-alone entitlement for politician study tours which had long become the focus of community anger. Labor MP Bernie Ripoll has been ridiculed for claiming an entitlement to see cycling in Europe.
Professor Allan Fels – the former Australian Competition and Consumer Commission boss who helped compile the Belcher Review – says the generous entitlements for MPs across the country stemmed from the view they were comparatively under-paid compared to the private sector.
“Basically, politicians want more pay. Basically the public outcry stops that. So instead they get a lot of entitlements and allowances," Fels told ABC Radio on Tuesday.
Ambiguous rules
Each state has its own system for politicians allowances and expenses.
In Queensland, a tightening of the travel allowance following rorting allegations in 1992 has resulted in MPs trips being assessed by the Clerk of the Parliament.
Queensland MPs have to certify they were on legitimate parliamentary business which is subsequently vetted by the Clerk.
South Australia and Western Australia have legislation that authorises an independent body to determine parliamentary entitlements and authorises parliament or the executive to provide for specific additional entitlements.
Windsor believes there is no need for another inquiry into politicians entitlements , saying MPs should err on the side of caution.
“I don’t know what an inquiry would come up with that common sense wouldn’t," he says.
“But there are always going to be some legitimate grey areas."
Communications Minister Malcolm Turnbull admitted the rules for MP's expenses had been “a little bit ambiguous" in the past.
He urged his colleagues to use their judgment and err on the side of not making expenses claims.
“I think, by and large, given there is a degree of ambiguity in these rules and a degree of judgment is called for, the better course of action is to err on a more conservative side and if there is any doubt, then don’t make a claim," he said on Sunday.
Double demerit points for offenders
The Greens have proposed an Integrity Commissioner to help tidy up the system.
But Independent Senator Nick Xenophon says this will just add another layer of bureaucracy.
He has proposed tightening guidelines for MPs which would help trim millions of dollars off the annual travel bill for federal politicians which he claims cost $34.5 million in taxpayer’s money in 2012.
“Most politicians want to do the right thing but there are some grey areas that can fix up the system," says Xenophon.
He says MPs should be required to fly economy rather than business class; scrap the default of fully-flexible air-fares as well as provide a two-sentence statement to the Department of Finance when claiming travel allowance which would be publicly released. (At the moment, all they are required to do is tick a box saying they are claiming travel allowance).
But, most controversially, Xenophon believes MPs should be forced to face “double-demerit points" if they incorrectly claim travel entitlements or allowances.
“If MPs are forced to pay double the amount they [incorrectly] claimed that will focus the minds of all of us, including me, to make sure we claim properly," says Xenophon.
Another idea is politicians facing the same scrutiny as the private sector does from the Australian Taxation Office when attempting to claim work trips or conferences.
“If a business person goes away for two weeks on a conference and there is one week of business , they can claim half of cost of airfares and accommodation.
“That’s fair enough," he says.
“The same rules that apply to business people or taxpayers should apply to politicians
Australia is not alone in some politicians attempting to game the system.
After a much-publicised media expose on wide-spread rorting of entitlements, the United Kingdom established an Independent Parliamentary Standards Authority which now has sole responsibility for setting and administering the rules on MP’s expenses.
Rules are based on reimbursement of tightly controlled expenses up to certain financial limits. All expense claims and payments are now published.
The European Union has a flat-rate allowance for MPs which is expected to cover the costs of running a member’s office including the costs of travel within their home country.
The Australian Financial Review
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Originally Posted by Thala Dan
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