CONFLICTS OF INTEREST
BACKGROUND
The Integrity and Accountability discussion paper outlined current processes for disclosing and managing potential of conflicts of interest
within the public sector. Members of Parliament are required to disclose pecuniary interests for publication on the Register of Members’
Interests and the Register of Related Persons’ Interests holds confidential details of relevant pecuniary interests of Members’ spouses,
partners or children. All Government Members of Parliament will be required to meet annually with the Integrity Commissioner to discuss
pecuniary interest disclosures and management of potential conflicts of interest.
Ministers are further required to tender advice of any conflicts of interests prior to discussion of any relevant matters at Cabinet meetings.
Within the public service, chief executives must provide statements of pecuniary interests to the Public Service Commission and their Minister
and senior executives must provide such statements to their chief executives.
The discussion paper posed three questions regarding conflicts of interest:
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Should the requirements for disclosure and managing conflicts of interest be set out in legislation?
How could safeguards to ensure conflicts of interest are appropriately managed be improved?
The Premier has committed to require that all Government Members of Parliament be required to meet with the Integrity Commissioner
annually to discuss their pecuniary interests and how they intend to manage any potential conflicts of interest which may arise – should
this requirement also apply to opposition and independent Members of Parliament?
RESULTS OF CONSULTATION
A total of 36 submissions addressed the issue of conflicts of interest, including submissions from the Centre for Governance and Public Policy
at Griffith University, the Clerk of the Parliament, the Crime and Misconduct Commission, the Queensland Greens Policy Working Group, the
Integrity Commissioner, the Auditor-General and a number of individual submitters. The table below summarises the submissions received on
this issue.
The majority of submitters supported a legislative framework for the disclosure and management of conflicts of interest, and both Government
and non-Government Members of Parliament being required to meet annually with the Integrity Commissioner. While a number of
submissions noted the difficulties in a legislative framework for disclosures of conflicts of interest, this was, on balance, supported as the most
effective way to ensure sufficient penalties for non-compliance.
The importance of transparency in conflict of interest declarations was noted in a number of submissions, with some submitters arguing for
public disclosure of public service pecuniary interest declarations and others arguing for enhanced independent oversight. The importance of
the role of the Integrity Commissioner was emphasised, with a number of submissions arguing for expansion of this role, incorporating a more
active engagement with Members of Parliament.
SUGGESTIONS
Specific suggestions for improvements included:
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Strengthen links and partnerships between review bodies (including Integrity Commissioner, Queensland Audit Office, Crime and
Misconduct Commission and Queensland Ombudsman) and establish a centralised system for receiving and directing complaints
(James and Kath Robertson).
Expand role of Integrity Commissioner to include overview of the Register of Members’ Interests, chief executive and senior executive
declarations, with biannual meetings being conducted (James Myers).
Establish an all-party Parliamentary committee based on the UK model to oversee the ethical standards regime (Centre for
Governance and Public Policy, Griffith University).
Strengthen penalties that attach to non-disclosure and make consequences of non-compliance more effective (Centre for Governance
and Public Policy, Griffith University and Monash University Accountability Round Table).
Review the Public Service Commission’s procedures for monitoring lodgement of chief executive declarations, including introducing
annual compliance audits (Crime and Misconduct Commission).
Integrity Commissioner should be appointed by the Crime and Misconduct Commission to enhance independence (Queensland
Greens Policy Working Group).
Introduce new laws that regulate conflicts of interest arising between employment in the private sector and post-public sector
employment of senior public officers (Clerk of the Parliament).
Open public officials’ registers of interests to public scrutiny or provide to watchdog agencies such as Crime and Misconduct
Commission, Ombudsman or Auditor-General (Dr Mark Lauchs).
Consider amending the Public Sector Ethics Act 1994 to allow the Integrity Commissioner to provide advice to Members of Parliament
without written requests and consider amending the Standing Orders to allow the Integrity Commissioner to access the Register of
Related Persons’ Interests (Integrity Commissioner).
No.
Submitter Name
5
Mr Gary Scanlan
9
11
Ms Margaret Mack
Mr James and Ms Kath
Robertson
Q3 - Should the requirements for disclosure
and managing conflicts of interest be set
out in legislation?
Q4 - How could safeguards to ensure conflicts
of interest are appropriately managed be
improved?
No. Seems to be an unnecessary step and the
difficulties faced in interpreting current
guidelines (e.g. the Premier’s holiday at a
friend’s house in Sydney) would only be carried
over to the legislative arena. There are
sufficient sanctions available if an MP or public
servant is found to have acted with a conflict of
interest. It is important that the focus be on the
mischief meant to be avoided i.e. the conflict of
interest, rather than some minor error or
oversight on the Pecuniary Interest Register.
Certain areas of private industry should be
required to make similar disclosures, but that is
not under consideration here.
Yes,
Not necessarily. What’s important is that
people can easily access information on what is
required in terms of disclosure and they need to
be able to get advice that is in plain English i.e.
not legalistic.
No change is required.
Greater transparency required.
Improve separation of powers e.g. Ministers strategic policies and legislation. Public Service implement strategies and enforce law. A third
independent sector - review and assess
performance. A third sector required because
many high level positions are political
appointments. Should DGs and other CEOs
make a pledge to serve the public first without
fear or prejudice? Another important principle is
to not allow someone to make decisions on
benefits, entitlements or matters that can directly
advantage them. An independent tribunal headed
by a person with bi-partisan support should
determine appropriate entitlements and guidelines
for Members, Ministerial Offices, and the
Opposition’s Office free of political interference.
Continuously develop and improve review
mechanisms. Perhaps all the review bodies (e.g.
Integrity Commissioner, QAO, CMC, Ombudsman
etc) should have stronger links and partnerships
with each other. e.g. have a centralized
complaints office where a complaint is recorded
and directed to the relevant experts for review and
reply. None of these offices should be part of a
department.
Q5 - The Premier has committed to require that all
Government Members of Parliament be required
to meet with the Integrity Commissioner annually
to discuss their pecuniary interests and how they
intend to manage any potential conflicts of
interest which may arise – should this
requirement also apply to opposition and
independent Members of Parliament?
Yes. The Opposition plays a vital role in democracy
in that it contributes to the debate over matters of
importance. While its members may not be decision
makers per se, they are influencing the process and
so discussion of possible conflicts would be
beneficial.
Yes, provided the Integrity Commissioner and their
office is 100% independent and appropriately
qualified to give advice. Confidentiality will be of vital
importance.
No.
Submitter Name
Q3 - Should the requirements for disclosure
and managing conflicts of interest be set
out in legislation?
Q4 - How could safeguards to ensure conflicts
of interest are appropriately managed be
improved?
Adopt the principle of publicity. Anglo-Saxon
principle where everybody was concerned with the
activities of everybody - the more a person owned,
the greater the obligation to protect the
community. This will better ensure that the public
is aware of interests and any conflicts.
Declare everything – if there is any doubt, don't
get involved.
13
Dr Stanley Robinson
Yes, including that no person can decide or
vote on a project where a conflict arises.
15
Mr Colin Hambrecht
Yes.
31
36
39
Ms Alison Christou
Mr Peter Kinsella
Mr James Myers
Need complete exposure of public spending.
Yes.
Every benefit should be recorded.
Through open disclosure.
Should be compulsory reporting of apparent of
actual conflicts of interest.
40
Moreton Bay Regional
Council
Current arrangements for councillors are robust
enough.
50
51
Mr John Van Der Klugt
Mr Ian Smith
Yes.
Too difficult to draft for contingencies.
58
Corruption Prevention
Network
68
LGAQ
82
Ms Chris Lawson
Yes in s 26 Public Service Act. Also, each
person who writes a brief for Minister should
describe their interest in the situation.
Yes, provided the laws have universal
application to all public sectors.
No.
Should be included in the Agencies Audit Program
and reported - MBRC already has this practice in
place.
Police checks - Auditor-General to administer
Appoint independent umpire if one party requests
one.
In the public service, an annual certification should
be included in the PPA process.
By way of a single code of conduct for the public
sector.
These matters should be included in the AuditorGeneral’s audit program for government agencies.
Q5 - The Premier has committed to require that all
Government Members of Parliament be required
to meet with the Integrity Commissioner annually
to discuss their pecuniary interests and how they
intend to manage any potential conflicts of
interest which may arise – should this
requirement also apply to opposition and
independent Members of Parliament?
Annually is not enough. Should be quarterly
declarations of interest to the Integrity Commissioner
for review. An annual report should be made public.
This should apply to all MPs.
Yes.
Yes. Also, Integrity Commissioner should have
expanded role. Broadened legislative power to
ensure overview of register of interests of all MPs,
agency CEOs and SES staff with bi-annual meetings.
Agrees in principle - but this is not a matter for MBRC
to comment on.
Yes - also senior staff.
No.
Yes, should also apply to local councillors and GOC
board members.
Yes.
Yes. However, the Integrity Commissioner has been
excluded from operating in the Local Government
arena, this needs to change. It is recommended that
the Integrity Commissioner be resourced via the
prevention arm of the CMC and other similar
prevention arms of other agencies. Consideration
also needs to be given to publishing decisions of the
Integrity Commissioner, similar to the Information
Commissioner.
No.
84
94
Submitter Name
Q3 - Should the requirements for disclosure
and managing conflicts of interest be set
out in legislation?
Q4 - How could safeguards to ensure conflicts
of interest are appropriately managed be
improved?
Centre for Governance
and Public Policy,
Griffith University
Yes. The Centre would argue for an all-party
committee approach to these issues (see the
UK model) supported by good research, and
with the added (revolving) membership of a
senior judicial officer and an academic adviser
involved in a relevant research field. The rules
should also extend to conflicts of interest by
members of Ministers' staff. The Centre also
urges a review of the effectiveness of current
Qld Parliamentary Committees with a view to
strengthening their capacity for research and
bipartisan assessment of issues.
Yes.
The real issue lies in the penalties that should
attach to non-disclosure. This might be a
monetary fine equal to twice the gain arising from
the benefit of the conflict of interest, and extending
to dismissal from Parliament or from public office
in extreme cases.
100
Ipswich Koala
Protection Society
Mr George Slatter
102
Clerk of Parliament
If there is a conflict of interest it is necessary for
this to be declared and abstain from voting or
influencing the final decision.
There must be new laws that regulate conflicts
of interest arising between employment in the
private sector and business and post-public
sector employment of senior public officers.
Careful consideration is needed in the
formulation of such laws, but they need to
recognise and prevent officers who have
decision making powers making decisions that
effect business and then those officers
benefiting later from that business, including
post-employment with that business.
Q5 - The Premier has committed to require that all
Government Members of Parliament be required
to meet with the Integrity Commissioner annually
to discuss their pecuniary interests and how they
intend to manage any potential conflicts of
interest which may arise – should this
requirement also apply to opposition and
independent Members of Parliament?
Yes.
No.
Submitter Name
106
Crime and Misconduct
Commission
107
108
Mr Colin Forrest
Monash University
Accountability Round
Table
128
Birkdale Progress
Association Inc
Q3 - Should the requirements for disclosure
and managing conflicts of interest be set
out in legislation?
Q4 - How could safeguards to ensure conflicts
of interest are appropriately managed be
improved?
Recommends that the Public Service Commission
review its procedures to initiate a monitoring
system for the lodgement of CEO Declarations of
Interest, introduce an annual compliance and
currency audit, and store declarations where they
can be reliably located if required. Also
recommends that the requirement to make a
Declaration of Interests to the Minister and the
Public Service Commission be extended to
include all senior officers occupying positions
which have delegations comparable in
responsibility to a CEO or SES4 position. In
addition, recommends that ethics education
programs include adequate attention to: (i)
declaration and recognition of non-pecuniary
interests; (ii) conflicts of interest which
disadvantage or cause a detriment.
Yes.
Yes.
The requirement of initial notification and of
subsequent changes within one month of the
Member becoming aware of the changes is
probably a reasonable timeframe. The
consequence of non-compliance should be made
clearer and more effective to encourage
compliance. Recommend that upon the Presiding
Office being satisfied (on the basis of evidence
from any source) after reasonable inquiry and
natural justice that the Member has failed to
disclose, within 28 days, full details of a material
interest of which he or she should reasonably
have been aware, the Presiding Officer should
"name" the Member and recommend that the
Member should be suspended from the House.
The suspension should provide that it be lifted
only when the Presiding Officer has established
that the Register's record has been corrected.
Declaring an interest is insufficient protection as
there are other ways of influencing outcomes
(public servants/policy prioritisation).
Q5 - The Premier has committed to require that all
Government Members of Parliament be required
to meet with the Integrity Commissioner annually
to discuss their pecuniary interests and how they
intend to manage any potential conflicts of
interest which may arise – should this
requirement also apply to opposition and
independent Members of Parliament?
Recommends that every MP be required to meet at
least annually with the Integrity Commissioner.
Yes.
No.
Submitter Name
Q3 - Should the requirements for disclosure
and managing conflicts of interest be set
out in legislation?
Q4 - How could safeguards to ensure conflicts
of interest are appropriately managed be
improved?
All MPs should regularly meet with the Integrity
Commissioner.
131
Queensland Greens
Policy Working Group
Yes. Without prescribing what is or isn't
appropriate behaviour, it will be harder to
confirm that a person has not acted
appropriately in dealing with a conflict of
interest.
134
Mr Andrew McMicking
Yes.
142
NCWQ
Yes.
150
Port of Townsville
Limited
As GOC standards are set out by ASIC, the
courts and industry practice, it is not necessary
for requirements to be set out in legislation for
GOCs.
152
Mr Clem Campbell
153
163
Dr Linda Colley
The Australian
Collaboration
Dr Mark Lauchs
Queensland University
of Technology
Queensland Council for
Civil Liberties
166
180
184
Sam Scanlon
More attention should be given to the moral
background of people who run for election.
A review could be undertaken comparing the
current system to ASX best practice principles to
identify measures used in private sector not just
utilised by Government. Also important that the
public sector is regularly trained in this area.
The term 'conflict of interest' needs to be
reconsidered. It implies to the public that there is
an illegal aspect for the decision make, when in
reality many of the issues are those of competing
interests for the decision maker, especially given
the many roles politicians play.
Yes.
Yes
Yes, only legislation can place sufficient
penalties on breaches.
Yes, should adopt CMC recommendations of
report on Gold Coast City Council.
Q5 - The Premier has committed to require that all
Government Members of Parliament be required
to meet with the Integrity Commissioner annually
to discuss their pecuniary interests and how they
intend to manage any potential conflicts of
interest which may arise – should this
requirement also apply to opposition and
independent Members of Parliament?
Of course. It would be foolish to suggest that only
government MPs are prone to conflicts of interest
which, if handled incorrectly, could be damaging to
our body politic. The Integrity Commissioner, further,
should be appointed by the CMC to avoid political
interference and party political influence in the review
of the interests of MPs.
Yes.
Yes.
Yes.
Yes
Public officials should open register of interests to
public scrutiny or provide to watchdog agencies
such as CMC, Ombudsman or Auditor-General.
Should establish independent statutory authority
empowered to ensure compliance with legislation.
Could be CMC but prefer revamped version of
Integrity Commissioner.
Senior public servants and Ministerial staff should
complete publicly accessible pecuniary interests
registers.
Unnecessary - current system is sufficient. Notes
workload and resourcing impacts on Integrity
Commissioner.
Yes, should apply to all MPs.
No.
Submitter Name
Q3 - Should the requirements for disclosure
and managing conflicts of interest be set
out in legislation?
193
Dr David Solomon
195
Robert Beno
Yes, as legislation will prevent tinkering and
manipulation at a later date.
198
Auditor-General of
Queensland
Accountable officers must show a high level of
care in the use of public funds. There should
not be any bias, either real or perceived, in
decisions concerning the expenditure of public
monies, and waste or extravagance should be
guarded against. All decisions should be
properly documented and be subjected to all
those checks necessary to guarantee the
soundness of those decisions.
Q4 - How could safeguards to ensure conflicts
of interest are appropriately managed be
improved?
(1) Regular training for officers on managing
conflicts of interest should be conducted, using
CMC toolkit. (2) Recommends review of
declarations of pecuniary interests - some
statutory office holders including Integrity
Commissioner not required to make declarations.
Understands PSC is currently undertaking review
to issue new guidelines.
Removing ambiguity and imposing blanket bans
on prescribed conduct. Conflicts should be
disclosed in advance. The Integrity
Commissioner's advice, who should not be a
'Toothless Tiger', should be sought by MPs and
senior public sector employees regarding any
potential conflicts of interest.
Q5 - The Premier has committed to require that all
Government Members of Parliament be required
to meet with the Integrity Commissioner annually
to discuss their pecuniary interests and how they
intend to manage any potential conflicts of
interest which may arise – should this
requirement also apply to opposition and
independent Members of Parliament?
(1) All MPs should also raise issues with pecuniary
interests declaration with Clerk of Parliament. (2) May
be desirable to amend Public Sector Ethics Act 1994
to allow Integrity Commissioner to volunteer advice to
MPs without need for written request for advice. (3)
May be desirable to amend Standing Orders to allow
Integrity Commissioner to access Register of Related
Persons' Interests.
Yes, all MPs and senior public sector
employees/public officials should have to adhere to
the same standards.