GUIDELINES FOR MANAGING CONFLICTS OF INTERESTS FOR
STATUTORY OFFICE HOLDERS
1.
Purpose
These guidelines are issued to assist statutory office holders in recognising and properly
managing the important area of conflict of interest.
It is imperative that public confidence be held and maintained in the ability of statutory office
holders to act impartially and fairly during any decision-making process or in any exercise of
their authority.
All statutory office holders should be aware of, and comply with, any obligations contained in
legislation establishing an office or any requirements of Codes of Conduct which apply to an
office. These guidelines are advisory and in addition thereto.
A “statutory office” is defined in section 108 of Public Service Act 1996 as an office established
under an Act to which a person may only be appointed by the Governor in Council or a Minister.
2.
Conflicts of interest and statutory officer holders
The role of statutory office holders is unique. These positions are created under an Act, and
persons are required to be appointed by the Governor in Council or a Minister. Statutory office
holders perform critical and sensitive roles in Government, often making decisions of vital
concern to the community.
3.
When conflicts of interest arise
A conflict of interest issue is defined by the Public Sector Ethics Act 1994 as a conflict between a
person’s private interests and the person’s official duties.
The statute establishing an office or the terms of employment will describe the official duties. On
occasions a statute will recognise that an individual is appointed to represent the interests of a
particular group. This can modify what would otherwise be the ambit of the official duties.
In the area of conflict of interest perception is all important. The established test is an objective
one, namely whether a reasonable member of the public, properly informed, would feel that the
conflict was unacceptable. Essentially it means that such reasonable member of the public would
conclude that inappropriate factors could influence an official action or decision.
Because the test is an objective one, it matters not whether you as an individual are convinced
that with your undoubted integrity you can manage what would otherwise be an unacceptable
conflict of interest. The test does not permit you as an individual to be a sounding board. You
must step back and objectively assess what a reasonable member of the public might think.
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It is well known that there are dangers in being a judge in one’s own cause. For this reason you
should not hesitate to seek the advice of your peers or supervisors and to keep firmly in mind that
the Integrity Commissioner is available to give confidential advice on conflict of interests matters
to statutory office holders.
There is nothing wrong with being placed in a potential conflict situation. Every statutory office
holder has private interests. The important thing is to be able to recognise the potential for a
conflict of interest and to manage it appropriately. Failure to do so can lead to drastic
consequences in the field of public perception.
Private interests are those interests that can bring benefit or disadvantage to an individual, or to
others whom they may wish to benefit or disadvantage. These include personal, professional or
business interests of the statutory office holder, as well as the personal, professional and business
interests of those associates, including family, friends, rivals and enemies.
Private interests can be pecuniary, or non-pecuniary. Pecuniary conflicts arise through actual or
potential financial loss or gain. Non-pecuniary interests are those that occur through personal or
family relationships, or involvement in sporting, social or cultural groups and associations.
Examples of private interests include:
(1)
A person’s interest in property of any kind, including money, the value of which may be
altered by a decision, recommendation or advice that person may make or be a party to
making.
(2)
A person’s commercial or business interest of any kind, including a future interest,
which could be advanced or harmed by a decision, recommendation or advice that that
person may make or be a party to making.
(3)
A person seeks or accepts gifts and/or hospitality which may influence or appear to
influence decision making.
(4)
A person’s relationships influence or appear to influence a decision, recommendation or
advice that person may make or be a party to making.
(5)
A person’s strongly held personal convictions which may make it difficult or appear to
make it difficult for the person to make an impartial decision, recommendation or
advice.
(6)
A person’s capacity to make a financial gain or to prevent a financial loss by using
confidential information.
(Queensland Integrity Commissioner (2004) Building Integrity in the Queensland Public
Sector – A Handbook for Queensland Public Officials, pg 60).
Public officials are obliged to put the public interest before any such private interests when
carrying out official duties. Public officials serve the public interest when they faithfully perform
their official duties. The public interest is the interest of the community as a whole.
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Statutory office holders should refer to the Act that creates their office for further information of
particular public interests their office serves.
4.
How to identify conflicts of interests
The key method for identifying conflicts of interests is to apply the objective test previously
mentioned.
A statutory office holder may be faced with conflicts of interest in numerous situations. As a
general rule, when a decision, advice or recommendation may help or harm a person with whom
the statutory office holder has a relationship or if the officer holder will be effected by the
decision, the statutory office holder responsible should not act alone. If a number of people are
involved in the decision, recommendation or advice, the nature of the relationship should be
disclosed to them. If the statutory body has regulatory, disciplinary or review responsibilities, an
office holder should not be involved in making a decision in which the person being considered is
a relative, friend or business associate or competitor.
The Crime and Misconduct Commission’s Toolkit “Managing Conflicts of Interest in the Public
Sector” provides a checklist to help assess whether a conflict of interest exists at page 36 (tool 8.1
- see attached). If there is any doubt as to whether a conflict of interest exists, the office holder
should err on the side of caution, declare their interest and take any appropriate management
steps.
5.
How to manage conflicts of interest
When determining the best way of dealing with a conflict of interest, it is important to weigh up
the interests of the organisation, individual (including level and type of position held), the nature
of the conflict and the public interest. A case by case analysis is required.
Firstly, a statutory office holder should refer to the Act that creates their office for guidance. This
may provide a process for declaring conflicts of interests. If the office has a Code of Conduct,
this should also be strictly adhered to.
If no process is provided in legislation, it is important that any conflict of interest is fully
disclosed in a timely manner. In some cases there will be a statutory or administrative
requirement to lodge a statement of interests.
Under the Public Sector Ethics Act 1994, a statutory office holder is able to seek the advice of the
Integrity Commissioner on matters relating to conflicts of interest. Such a request must be made
in writing, and the Integrity Commissioner will provide a confidential written advice.
Alternatively, statutory office holders in the Queensland Public Sector are free to seek
independent legal advice in relation to conflict of interest issues on a case by case basis.
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Another appropriate management strategy is for the statutory office holder to refrain from taking
part in activities and decision-making where the conflict arises. Techniques may include
abstaining from voting on decision proposals, delegating decision making powers to another
officer where the relevant legislation permits, withdrawing from discussion, or restricting access
to information relating to the conflict of interest.
Finally, it is essential that detailed record-keeping occurs, particularly concerning:

Registration of relevant private interests;

Disclosure of the conflict of interest;

Directions given about handling the conflict of interest;

Decisions and arrangements made for resolving the conflict of interest; and

Steps taken in implementing the chosen management strategy.
6.
Further references
Further useful references regarding conflicts of interest include:

Welcome Aboard - A Guide to Members of Queensland Government Boards,
Committees and Statutory Authorities, available at www.premiers.qld.gov.au

The Office of the Queensland Integrity Commissioner - Statutory Office Holders &
Conflicts of Interests - Information Sheet No. 3, available at www.integrity.qld.gov.au

Building Integrity In the Queensland Public Sector: A Handbook for Queensland
Public Officials, available at www.integrity.qld.gov.au

The Crime and Misconduct Commission - Managing Conflicts of Interest in the Public
Sector: Toolkit and Managing Conflicts of Interest in the Public Sector: Guidelines,
available at www.cmc.qld.gov.au

Code of Ethical Standards, Legislative Assembly of Queensland, prepared by the
Members’ Ethics and Parliamentary Privileges Committee.
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