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NLIS 10
July 21, 2006
(Executive Council)


Terms of Reference for MHA compensation package released

The Terms of Reference for Chief Justice Derek Green will enable him to do a thorough and comprehensive review of the compensation package for Members of the House of Assembly (MHAs), said Premier Danny Williams upon release of the Terms of Reference.

�As I said at the time of the Chief Justice�s appointment, it is very important that compensation packages for MHAs are reviewed periodically and also to ensure that the rules governing constituency allowances are transparent and held to the highest standards,� said Premier Williams.  �These Terms of Reference will allow Chief Justice Green to complete a thorough analysis, including a review of best practices in other jurisdictions.  I look forward to seeing this review completed as expeditiously as possible.�

The Chief Justice is also authorized to undertake an independent review and evaluation of the policies and procedures for control of the types of expenditures and payments made by the House of Assembly to suppliers.

Premier Williams appointed Chief Justice Green of the Supreme Court of Newfoundland and Labrador on June 26, 2006, to evaluate compensation received by MHAs including things such as constituency allowances, salary levels and pension benefits.

�Our government remains steadfast in maintaining our commitment to be open and accountable, and the work of the Chief Justice will build upon the initiatives we have taken to date,� added the Premier.

Media contact:  Elizabeth Matthews, Office of the Premier, (709) 729-3960, 351-1227, elizabethmatthews@gov.nl.ca

BACKGROUNDER

Terms of Reference of a review to be undertaken by the Honourable J. Derek Green, Chief

Justice of the Supreme Court of Newfoundland and Labrador, Trial Division:

 

1.   Chief Justice Green is authorized to undertake an independent review and evaluation of the policies and procedures regarding compensation and constituency allowances for Members of the House of Assembly that includes:


i.An assessment of Members of the House of Assembly (MHA) Constituency  Allowances to determine if they are the most effective and efficient vehicle to reimburse MHAs for expenses incurred during the normal execution of their duties;

 

            ii.A comparison of all components of compensation of members of the legislature in Newfoundland and Labrador, including but not limited to indemnities, allowances and pensions, with that in other provincial and territorial legislatures in Canada;

 

            iii.An evaluation of best practices for compensation of members of legislatures in other provinces and territories; and
 

            iv.A determination of whether proper safeguards are in place to ensure accountability and compliance with all rules and guidelines governing payments of all aspects of MHA compensation and Constituency Allowances;

 

2.   The Chief Justice is authorized to undertake an independent review and evaluation of the policies and procedures for control of the types of expenditures reviewed by the Auditor General in his report, �Payments Made by the House of Assembly to Certain Suppliers;�

 

3.   A matter that is necessarily incidental to a matter specified above may be included in the review and evaluation by the Chief Justice;

 

4.   The Chief Justice is authorized to develop recommendations on policies and practices resulting from the review and evaluation as outlined above.  Additionally, the Chief Justice is authorized to bring forward recommendations that would ensure the accountability and compliance practices employed in the House of Assembly meet or exceed the best in the country.  Such recommendations must take into account opportunities to enhance the accountability and transparency of MHA expenditures without undermining the autonomy of the legislature and its elected members;

 

5.    All Ministers and Officials of the Government of Newfoundland and Labrador, and its agencies, are to provide the Chief Justice with their complete and unreserved cooperation in all aspects of this review;

 

6.   Recommendations should be brought forward for the consideration of Cabinet as soon as reasonably possible, to enable the House to address any potential legislative and administrative changes in its Fall 2006 session; and

 

7.   The Department of Justice and the Public Service Secretariat, in collaboration with Executive Council and the Department of Finance, are directed to take the necessary actions to provide Chief Justice Green with the necessary resources to undertake this review expeditiously with such resources to include a part-time legal counsel, a part-time accountant, a part-time advisor from Memorial University, an individual to provide administrative and research support, a policy advisor and an actuary.

 

8.   The ability to summon a witness or witnesses if necessary in the conduct of his review.

2006 07 21                                               5:05 p.m.


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