Ministerial Statement

PARLIAMENTARY REMUNERATION

The Hon. J.J. SNELLING (Playford—Treasurer, Minister for Workers Rehabilitation, Minister for Defence Industries, Minister for Veterans' Affairs) (14:05): I seek leave to make a ministerial statement.

Leave granted.

The Hon. J.J. SNELLING: I rise to make a ministerial statement on proposed amendments to the Parliamentary Remuneration Act. Late last year I introduced amendments to the act that froze the pay of state parliamentarians until 30 June 2012, temporarily pausing the link between the basic salary rate of a federal parliamentarian to that of a state parliamentarian. That link currently sees the basic salary of a state parliamentarian being $2,000 less per year than that of their federal counterparts.

Other entitlements that are payable to state parliamentarians—for instance, electoral allowances—are currently determined by the Remuneration Tribunal of South Australia. Late last year, the commonwealth Remuneration Tribunal determined the allowances of federal MPs, including their base pay, which then determines the pay of state parliamentarians. In December 2011, legislation was passed suspending the linkage between the state and commonwealth salaries. This prevents any significant increase in the salary of federal parliamentarians from automatically flowing through to state parliamentarians.

The commonwealth Remuneration Tribunal has since recommended a 31.29 per cent increase in the base salary of federal parliamentarians from $140,910 to $185,000. This increase was partially offset by changes to some parliamentary allowances. If there are no amendments to the Parliamentary Remuneration Act 1990, the base salary of state parliamentarians will automatically increase to $183,000 on 1 July 2012.

This is not acceptable in the view of the South Australian government. In the current economic climate, the increase in base salaries should not see a large automatic increase in the salary of state parliamentarians. The changes to federal parliamentarians' basic pay could have seen a benefit in excess of $40,000 flowing to state MPs. Under our proposal, this will now not happen.

Cabinet has approved continuing to maintain the link to the basic salary of federal parliamentarians but increased the difference between the base salary of state and federal parliamentarians to $42,000. I will soon introduce legislation to increase the base salary of South Australian parliamentarians to $143,000 per annum from 1 July 2012, an effective increase of 2.9 per cent.