PM announces real-time disclosure and an independent authority to oversee expenses, but would not reveal outcome of investigation into Ley’s claims

This article is more than 3 years old

This article is more than 3 years old

Sussan Ley has resigned as health minister and the government will set up an independent parliamentary expenses authority, Malcolm Turnbull announced on Friday.

At a press conference in Sydney, Turnbull thanked Ley for her service and said he thought she had made the “right judgment” in choosing to resign.

Ley stood aside as health minister on Monday pending an investigation into her claims for taxpayer-funded travel, including what she called an “error of judgment” in charging for a trip to the Gold Coast in which she bought a $795,000 apartment.

In a statement on Friday Ley said she was still “confident” that she had followed the rules “not just regarding entitlements but most importantly the ministerial code of conduct”.

But Ley said she chose to quit because “ongoing media coverage of politicians’ entitlements has been a diversion” from the government’s agenda.

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Ley accepted “community annoyance, even anger, with politicians’ entitlements demands a response”.

No details were provided by Turnbull or Ley about the outcome of the investigation, only that Ley had resigned after “extensive discussions with the secretary” of the department of prime minister and cabinet.

Acting opposition leader, Penny Wong, said Ley had done what Turnbull was “too weak” to do, implying he should have sacked her. Wong criticised him for promising a “strong investigation” then refusing to say what it had concluded.

Turnbull said the expenses system had to reflect that politicians were “dealing with other people’s money” and were “fiduciaries for the people of Australia”.

“The Australian people are entitled to see that we are spending it wisely, appropriately, in accordance with the rules, but also in a manner that gets value for money.”

Turnbull said the new proposed parliamentary expenses body would have responsibility for compliance, reporting, monitoring and adjudicating all claims by MPs, senators and ministers, to ensure they are within the rules.

Politicians would be able to get a ruling from the body whether proposed expenses were within the rules.

“The body will be governed by an independent board, which will include a person experienced in auditing, in audit matters, a person with wide experience in remuneration matters, the president, for the time being, of the remuneration tribunal, a former judicial officer and a former MP,” he said.

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Turnbull said the system that manages entitlements “will be modernised to allow monthly disclosure of parliamentarians’ expenses in an accessible ... searchable format”.

Turnbull said improved transparency would prevent improper spending. He blamed “antiquated” IT for the difficulty of the current system, including use of paper forms to make claims and disclosures published as “big PDF” files.

The prime minister said the United Kingdom’s expense reporting system provided a model for reforms.

The reforms come on top of the announcement on Tuesday by acting special minister of state, Kelly O’Dwyer, that the Turnbull government would implement all 36 recommendations from last year’s review of the expenses system, including clarifying what constitutes “official business”.

Turnbull said the special minister of state would develop the reform proposal in consultation with major and smaller parties.

Wong said Labor was “up for reform of parliamentarians’ work expenses”. Bill Shorten spoke to Turnbull on Friday and gave in-principle support for the announced changes.

Wong said the government had “sat on” the Conde report on parliamentary entitlements for more than 300 days.

The Greens have also called for a national anti-corruption body with a function to audit and advise on parliamentary expense, which it reiterated on Friday.

Turnbull foreshadowed a reshuffle or new appointment to the health portfolio next week and said Arthur Sinodinos would continue acting as health minister in the meantime.

In addition to the trip on which she bought an apartment, Ley also twice charged taxpayers to attend New Year’s Eve events hosted by a businesswoman that Guardian Australia revealed was multimillionaire Sarina Russo, a donor to the Liberal National Party.

Ley was largely politically friendless throughout the week, with only education minister Simon Birmingham offering lukewarm support and former speaker, Bronwyn Bishop, who herself quit over an expense scandal, blaming “socialists” for Ley’s demise.

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The expenses scandal widened with revelations Ley had charged for a trip on which she inspected another Gold Coast properties and taken chartered flights between capital cities. Four Coalition ministers had charged to attend the prime minister’s 2015 New Year’s Eve party and some including foreign minister Julie Bishop charged for sports events.

No other ministers or MPs stood aside, all maintaining their travel claims were within the rules.

Trade minister Steven Ciobo defended politicians charging taxpayers to attend major sports events, declaring they are work-related expenses because they allow businesses and other organisations to “showcase themselves”.