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Legislative Council - Fifty-Second Parliament, Second Session (52-2)
2012-05-02 Daily Xml
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PARLIAMENTARY REMUNERATION (BASIC SALARY) AMENDMENT BILL

Introduction and First Reading

Received from the House of Assembly and read a first time.

Second Reading

The Hon. G.E. GAGO (Minister for Agriculture, Food and Fisheries, Minister for Forests, Minister for Regional Development, Minister for Tourism, Minister for the Status of Women) (20:33): I move:

That this bill be now read a second time.

I seek leave to have the second reading explanation inserted in Hansard without my reading it.

Leave granted.

The current provisions of the Parliamentary Remuneration Act 1990 ('the Act') provide that State Parliamentarians have a base salary that is automatically linked to the base salary payable to a Federal Parliamentarian, less $2,000 per annum.

Last year the Commonwealth Remuneration Tribunal undertook a review of the base salary of federal parliamentarians. The Tribunal determined on 12 March, 2012 that the base salary of federal parliamentarians will increase from $140,910 to $185,000, with some offset to allowances.

If there are no amendments to the Act the base salary of State Parliamentarians will automatically increase to $183,000 on 1 July, 2012. This would see a benefit in excess of $40,000 flowing to state Members of Parliament.

A salary increase of that magnitude is not acceptable to the State Government.

The State Government therefore introduced and passed legislation late last year to freeze 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.

This Bill maintains the link between the base salary of State Parliamentarians to that of Federal Parliamentarians. However, to avoid a significant increase in salaries, it will set the difference between the base salary of State and Federal Parliamentarians at $42,000 from 1 July, 2012. This will mean the base salary of South Australian Parliamentarians will be $143,000 per annum from 1 July, 2012, an effective increase of 2.9 per cent.

I commend the Bill to Members.

Explanation of Clauses

Part 1—Preliminary

1—Short title

This clause sets out the short title.

2—Commencement

This clause provides for commencement of the measure on 1 July 2012.

3—Amendment provisions

This clause is formal.

Part 2—Amendment of Parliamentary Remuneration Act 1990

4—Amendment of section 3—Interpretation

This clause substitutes a new definition which provides that basic salary under the Act is annual salary at a rate equal to $42,000 less than the rate from time to time of Commonwealth basic salary.

Debate adjourned on motion of Hon. J.M.A. Lensink.

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