Stephen Smith (Perth, Australian Labor Party, Deputy Leader of the House) Share this | Link to this | Hansard source

On indulgence, Mr Speaker: on 14 September this year I received an email from my brother-in-law congratulating me on my appointment as Minister for Defence. The email drew to my attention the possibility that there may be potential for a conflict of interest arising as a result of his employment. He is currently a Unisys employee working in Defence as a defence communications facility manager.

Following receipt of this email, I sought advice from the Secretary of the Department of Defence on the implications and on any steps that might be necessary to help ensure that no conflict-of-interest issues arise. The secretary has advised that my brother-in-law manages a small team of Unisys contractors on behalf of Unisys under a contract that runs from October 2009 to October 2014. While the overall Unisys contract is worth some $45 million per annum, I am advised that the relevant component is nearly $8 million per annum. The Secretary of the Department of Defence has also advised that my brother-in-law’s position is not one that is able to affect the way Defence manages the contract and, further, that Defence will ensure that he is not involved in any future contract negotiations.

In the circumstances, the secretary has advised that it is unlikely that my brother-in-law’s role creates any direct conflict in respect of my responsibilities. Nevertheless, erring on the side of caution and to help ensure that a perception of conflict of interest does not arise in the future, I have written to the Prime Minister detailing arrangements put in place at the advice of the Secretary of the Department of Defence. These include that Defence and the Defence Materiel Organisation will ensure that my office and I are not involved in any significant procurement or contract related decisions involving Unisys—noting that procurements of low value or sensitivity would not be briefed to ministers in any event—and, in particular, that Defence and the Defence Materiel Organisation will ensure that I am not sent or copied into any submission relating to any such procurement or contract, including submissions for noting.

I propose to table a copy of this letter for the information of the House. I will also include reference to this matter in my statement of private interests that I am required to lodge with the Prime Minister and in my statement of registrable interests to the House. I have provided this detail to the shadow minister who represents the shadow minister for defence in this place. I table the letter that I have referred to.

Jason Clare (Blaxland, Australian Labor Party, Minister for Defence Materiel) Share this | Link to this | Hansard source

On indulgence, Mr Speaker: before being sworn in as the Minister for Defence Materiel, I advised the Minister for Defence that my brother works for a company that indirectly provides products to the Australian Defence Force.

Christopher Pyne (Sturt, Liberal Party, Shadow Minister for Education, Apprenticeships and Training) Share this | Link to this | Hansard source

I rise on a point of order, Mr Speaker. Just for the clarity of the House in this parliament, on what basis are these matters being declared to be matters of indulgence from the Speaker, when matters of indulgence are usually something like condolence on the death of a soldier and so forth? These matters would be quite properly dealt with by writing to the Clerk or advising the opposition rather than by taking the time of the House. We have received no notice of these indulgences at all. While we are aware of the sensitivity involving the former Minister for Defence—

Harry Jenkins (Speaker) Share this | Link to this | Hansard source

The Manager of Opposition Business will resume his seat.

Stephen Smith (Perth, Australian Labor Party, Deputy Leader of the House) Share this | Link to this | Hansard source

Mr Speaker, I would like to speak on the point of order.

Harry Jenkins (Speaker) Share this | Link to this | Hansard source

There is no point of order, because there is no point of order to an indulgence. Old paradigm, new paradigm, I indicate to the House that I will allow these two indulgences but they could be the last indulgences we get if there is not cooperation across the chamber about these matters.

Christopher Pyne (Sturt, Liberal Party, Shadow Minister for Education, Apprenticeships and Training) Share this | Link to this | Hansard source

Mr Pyne interjecting

Harry Jenkins (Speaker) Share this | Link to this | Hansard source

Yet again, in the 43rd Parliament, the Manager of Opposition Business, who wants to be loved, makes it very hard. If he wants me to give him a little bit of credit for something, he should just sit there quietly. I am just saying that I am happy for these matters, now that we have asked—

Stephen Smith (Perth, Australian Labor Party, Deputy Leader of the House) Share this | Link to this | Hansard source

Mr Stephen Smith interjecting

Harry Jenkins (Speaker) Share this | Link to this | Hansard source

The Minister for Defence will also learn that he cannot sit there interjecting like that. He has got to understand that this was done by indulgence. It could have quite easily been done by leave and all the 150 members of the House would have been involved. In doing it this way, the indulgence is granted by the chair. I am allowing it but I will not be allowing indulgence if I do not think that there has been cooperation. The Minister for Defence Materiel has the call.

Jason Clare (Blaxland, Australian Labor Party, Minister for Defence Materiel) Share this | Link to this | Hansard source

Matthew Clare, my brother, is the Queensland sales manager of MPM Marketing, which is a supplier of disposable food service products. MPM Marketing is a preferred supplier of Serco Sodexo, which is contracted to supply the Australian Defence Force.

The Minister for Defence has sought advice from the Secretary of the Department of Defence on what controls should be implemented to help ensure no conflict-of-interest issues arise. Dr Ian Watt, the secretary of the department, has advised that MPM Marketing does not hold any contracts with Defence or DMO in its own right and that contracts with Serco Sodexo are primarily managed not by the DMO but by the Defence Support Group. The secretary has therefore advised that it is unlikely that I will be put into a position of conflict with respect to my portfolio responsibilities. Nevertheless, erring on the side of caution and to help ensure no conflict can arise, the secretary has recommended that a number of controls be implemented by the department and within my office.

The Minister for Defence and I have written to the Prime Minister detailing these controls. A copy of these letters is tabled for the information of the House. I will also ensure that this information is included in my statement of private interests that I am required to lodge with the Prime Minister and the statement of registrable interests that all members are required to provide to the House Register of Members’ Interests within 28 days of being sworn in as a member. I table those letters.