SPECIAL Minister of State Scott Ryan has announced he’s agreed to waive the debt to the Commonwealth, of disqualified Family First Senator Bob Day.
But the fate of the $700,000 debt owed by WA farmer and former One Nation Senator turned independent Rod Culleton remains officially unknown, to the government.
Mr Ryan made a statement this afternoon during his appearance at the Finance and Public Administration Committee’s budget estimates hearing in Canberra, updating it on matters relating to the two former Senators.
He said this year two separate rulings of the High Court acting as the Court of Disputed Returns declared the Senate positions of Mr Culleton and Mr Day vacant.
On February 3, 2017, the Court of Disputed Returns found that Mr Culleton was incapable of being chosen as a Senator, under section 44.2 of the constitution because he had been convicted and subject to be sentenced for an offence punishable by imprisonment for one year or longer at the date of the 2016 election, he said.
Mr Ryan said in a separate matter, on April 5, 2017, the Court of Disputed Returns found Mr Day was incapable of sitting or being chosen as a Senator due to a pecuniary interest in an agreement with the public service, and the commonwealth related to the lease of his Adelaide electorate office.
He said the salary allowance paid to Mr Culleton and Mr Day and other costs like superannuation, benefits and staff payments were considered a debt owed to the Commonwealth.
Mr Ryan said the government had written to both men informing them of the debts - responsible to the Department of Finance and Department of the Senate - and notifying them of their positions and options to which Mr Day had responded, requesting the debt be waived, in a letter dated May 20.
He said as the minister responsible, he considered Mr Day’s request and in making a decision took advice form an advisory committee which noted it may be seen to be “inequitable” for the Commonwealth to pursue the debt because the former Family First member performed his duties as Senator in “good faith”.
“I have agreed to waive Mr Day’s debts,” Mr Ryan said.
“As the media has reported letters were sent to both Mr Culleton and Mr Day outlining the situation and presenting a number of options to progress this issue.
“The letters provided Mr Day and Mr Culleton with options in relation to this debt.
“Mr Day has elected to take one of those options which was to apply for a waiver.
“The options outlined in the letters remain open to Mr Culleton.”
Mr Ryan said the waiver of Mr Day’s debt was consistent with the outcome in previous similar cases.
Mr Culleton has told Fairfax Media the total debt for his six months serving in the Senate, prior to his disqualification, was close to $700,000 – but he would not be applying for a waiver as it would be an “admission”.
Mr Ryan did not provide any advice to the Committee for an amount of the debt attributed to Mr Day, or Mr Culleton.
NSW Liberal Democratic Senator David Leyonhjelm and SA Senator Nick Xenophon have both supported the government not pursuing recovery of the debts, against the former Senators.