Opinion Number. 120

Subject

MEMBER OF PARLIAMENT
WHETHER MAY BE SURETY FOR CONTRACTOR TO COMMONWEALTH: WHETHER SEAT WOULD BE VACATED : WHETHER WOULD AMOUNT TO PECUNIARY INTEREST IN AGREEMENT WITH COMMONWEALTH

Author
Key Legislation

CONSTITUTION, ss. 44,45

Date
Client
The Secretary, Postmaster-General's Department

The Secretary, Postmaster-General's Department:

The Deputy Postmaster-General, Queensland asks the Secretary, Postmaster-General's Department whether members of the Commonwealth Parliament are legally qualified to act as sureties for mail contractors.

The Secretary, Postmaster-General's Department refers the matter to this Department for advice.

Recommend to reply that a bond executed by a member of Parliament would be valid; the only question of law being whether the member's seat would be vacated, under sections 44 and 45 of the Constitution. This depends on whether he 'has any direct or indirect pecuniary interest in any agreement with the Public Service of the Commonwealth'. The position of surety for the performance of a Government contract probably would involve at least an indirect pecuniary interest in the contract within the meaning of the section-seeing that the surety may in certain events be required either to take over the contract or pay the damages. In any case, it would certainly not be desirable to accept a member of Parliament as surety.

[Vol. 3, p. 21 ]