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Federal Independent Parliamentary Standards Authority Act (2016)

By Jonathan J. Ariel - posted Friday, 7 August 2015


For a start, he can ditch any loyalties he may have that run counter to the unvarnished expressions of his backbench. Call it "flicking the switch to marketing". When they realise that's what the voters are baying for, the backbench will force a wide reaching inquiry into the travel rorts affair.

Second, the PM must realise that Sen. Nick Xenophon (IND-SA) is doing his best to ginger up South Australians against the Abbott government by threatening to run candidates against government members, posing in the first instance, a clear and present danger to the Minister for Education, Christopher Pyne in the seat of Sturt. And Tuesday's $40 billion spending promise to jump start South Australia's ship building industry may not be enough to appease Xenophon and his supporters.

Third, across the Bight, the Member for Denison, Andrew Wilkie (IND-TAS) is livid at Tony Burke's wanton expenditure and is demanding a comprehensive audit of all politicians travel claims. The former ONA analyst, understands very well the public's mood.

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Despite the $40 billion price tag, Tuesday's bread and circus show in Adelaide is not a substitute for overhauling the entitlement rules.

So what's the Prime Minister to do?

Abbott could do worse than launch an inquiry to investigate the scope and depth of the costs, expenses and reimbursement trough into which politicians of both major parties happily dip their snouts and gorge like there's no tomorrow.

In addition, a new expenses regime should be established, promoting transparency and spelling out clearly what is and what is not a legitimate expense.

The inquiry's first order of business I suggest should be reading the Guide to MPs' Business Costs and Expenses, (7th Edition, 2015-16) published by Britain's Independent Parliamentary Standards Authority (IPSA). This handbook explains what costs and expenses British members of parliament are reimbursed in performing their parliamentary functions.

Created by the UK Parliament in the wake of the 2009 MPs' expenses scandal, IPSA was given the remit and powers to introduce independent regulation of MPs' business costs and expenses and, subsequently, pay and superannuation.

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IPSA binned the previous "self regulation" by MPs and replaced it with new rules that are fair to MPs and the public purse, are workable and crucially, are transparent.

When compared to the Australian situation, the Brits are very frugal indeed in the scope and quantum of what is allowed.

IPSA's guidance, read in tandem with the MPs' Scheme of Business Costs and Expenses, clarifies key aspects of the Scheme and puts it into context for MPs so there is minimal ambiguity as how it applies to MPs' day-to-day work. What can be claimed is straight forward as is the process for MPs to make claims.

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About the Author

Jonathan J. Ariel is an economist and financial analyst. He holds a MBA from the Australian Graduate School of Management. He can be contacted at jonathan@chinamail.com.

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