Govt cuts parliamentary entitlements

Current and former MPs have been put on notice: the days of the political perk could
be numbered.
An independent panel will examine a broad range of perks such as overseas study
travel, allowances and the Life Gold Pass under a wide-ranging review of the
parliamentary entitlements system.
Special Minister of State Joe Ludwig set up the review - due to report in six months
- after Commonwealth auditor-general Ian McPhee released a damning report on
Tuesday, which found the existing system "complex and overdue for reform" and open
to abuse.
It chided too the approach taken by the Finance Department - charged with overseeing
the system - which was in the dark about how allowances were being used.
"The department has ... adopted a relatively gentle approach to the entitlements
administration," the report said.
In echoes of the recent perks scandal involving British MPs, the auditor-general
found MPs were using printing and newspaper allowances to pay for items as
confounding as kids' books, lollies and songbooks.
This financial year alone Finance expects to spend $162 million on politicians'
entitlements excluding their staff. More money goes on their electorate allowance,
which isn't administered by the department.
Senator Ludwig acknowledged the current system was ambiguous, vague and ill-defined.
"The report is a call to action for the Rudd government," he told reporters on Tuesday.
"The need for reform is clear. The audit has thrown the spotlight on an area that is
badly in need of changes."
The panel is being asked to look at ways to make the system more simple and
transparent.
"It will include matters such as overseas study travel ... entitlements to Life Gold
Pass, severance travel," Senator Ludwig said.
They will also recommend ways to make the system more accountable and suggest how to
handle cases of misuse.
While the review covers a long-term overhaul of entitlements, the government will
immediately implement a number of changes to clamp down on rorting.
Printing entitlements will be cut by 25 per cent and strictly limited to
parliamentary or electorate business under new guidelines.
In a random survey of printing allowance use, the auditor-general found in 74 per
cent of instances the entitlement was at risk of being misused.
And during the 2007/08 financial year - which covers the 2007 election - the
auditor-general found some MPs were using the printing allowance primarily for
re-election.
Under the changes, politicians will no longer be able to use the money to print
their own how-to-vote cards.
The coalition backed the proposed changes.
"We welcome any reforms which clarify the complexity in the current system, which
provide greater assurance for senators and members, and which aid public confidence
in the integrity of the system," opposition accountability spokesman Michael
Ronaldson said in a statement.
"We will work with the government to implement the reform proposals they announced."
Australian Greens Leader Bob Brown, a long-time campaigner against excessive perks,
called for a permanent watchdog to police the system.
"I just don't think it should be the printing allowance but electoral allowances and
other allowances as well," he said.
Independent Senator Nick Xenophon suggested the major political parties had used
their allowances as "slush funds" to pay for political advertising on the cheap.
"It's human to make a small mistake here or there, but to get something wrong 74 per
cent of the time shows a blatant disregard for the rules," he said.
"These taxpayer-funded allowances have been used by both sides of politics as
virtual party-political campaign funds."