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A pecuniary interest is a financial holding, such as owning a company or shares in a company, owning land or being employed by an organisation. In certain circumstances, a pecuniary interest can create a conflict of interest for a member of Parliament.
The prime responsibility of members of Parliament is to act in the public interest. If a member has a pecuniary interest, it is possible that they will be influenced by it when contributing to debate, voting in the House or performing other duties as a member of Parliament. Potentially a member could act to promote their own private interests, rather than the public good.
As a result, rules have been put in place to prevent possible conflicts of interest. If a member of Parliament has a pecuniary interest he or she may:
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be disqualified from being a member of Parliament |
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be required to declare that interest |
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not be able to vote on a matter related to that interest. |
Disqualification from Parliament is the most serious consequence for a member who has a pecuniary interest. Under the Constitution Act 1975, with a few limited exceptions, a person is not eligible to be elected as a member of Parliament or, if they are already a member, their seat may become vacant if they:
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hold an ‘office of profit under the Crown’ |
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are employed by the Victorian public service |
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enter into a contract or bargain with the State of Victoria |
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either directly or indirectly become concerned or interested in any bargain or contract entered into by the State of Victoria (for example, owning a company that has a government contact). |
If a member is disqualified, they lose their seat and a by-election is held. These cases are rare and so far there is only one instance of this occurring, in 1861.
Under the Members of Parliament (Register of Interests) Act 1978, members of Parliament must notify the Clerk of Parliaments of certain pecuniary interests. Information that must be disclosed to the Clerk includes:
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the name of any company or other body of which the member holds any office, whether as a director or otherwise |
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the name of any company, partnership or association in which the member holds an interest worth over $500 |
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the source of any fee or other sum exceeding $500 received by the member in respect of any contract entered into or paid office held by the member |
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details of membership of any political party or trade or professional organisation |
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a concise description of any trust in which the member holds a beneficial interest |
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the address or description of any land owned by the member |
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the source of any contribution to travel undertaken by the member |
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details of any gift over $500 received other than from a relative |
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any other interest that might appear to raise a material conflict between the member’s private interests and public duty. |
Members must notify the Clerk of this information when they become a member and must also notify the Clerk of any changes that occur during their term as a member. A list of these interests is then produced by the Clerk of Parliaments at least once a year and is tabled in Parliament. The list only includes the name and nature of the interest, not the amount.
Once the list is tabled in Parliament, copies are publicly available. Making this information publicly available ensures that the public is fully informed and increases the accountability and transparency of members of Parliament.
Under section 3(1)(d) of the Members of Parliament (Register of Interests) Act 1978, members must declare any material interest, whether of a pecuniary nature or not, when speaking in the House. Past practice has been for the member to declare their interest at the start of their speech.
Previous examples of members declaring their interests include a member who owned a dairy farm declaring this when talking on proposed changes to the Dairy Act and a member who owned shares in a brewing group declaring this when talking on a bill to amend the Liquor Control Act.
In addition to this requirement to declare all interests, a member is prohibited from voting if they have a direct pecuniary interest. Standing Order 170 states ‘A member must not vote in the House or a select committee on any question in which he or she has a direct pecuniary interest. If a member does so, his or her vote is to be disallowed.’
A direct pecuniary interest is one that is immediate and personal, not of a general or remote character. If a member has a direct pecuniary interest, they are able to contribute to the debate as usual so long as they declare their interest. However, they cannot vote and must leave the chamber when a vote is being taken.
If a vote is made where a member has a direct pecuniary interest, a motion can be made to disallow that vote. This has not occurred to date as members are generally cautious and do not vote where it is possible a conflict may arise.
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Constitution Act 1975, ss 54–61A |
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The Legislative Assembly Procedure Office has produced a series of Fact Sheets that explain parliamentary procedure and terminology. All Fact Sheets are available on Parliament's website www.parliament.vic.gov.au or through the Procedure Office.
Legislative Assembly Procedure Office
Parliament House
Spring Street
EAST
MELBOURNE VIC 3002
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03 9651 8563 |
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Fax: |
03 9650 7245 |
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Email: |
To make our Fact Sheets as effective as they can be, we need your feedback. Click here to complete an online questionnaire.
Compiled by the Procedure Office
and issued by the Clerk of the Legislative Assembly
February 2006
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