Mr JULL (Minister for Administrative Services)(10.13 a.m.) —I thank the member for Reid (Mr Laurie Ferguson) and the member for Moreton (Mr Hardgrave) for their contributions. I know the member for Reid did raise the issue of the superannuation payments to former members and their widows. For the record, I assure the member for Reid that the government was well aware of what the effects of that would be.

Under the Parliamentary Contributory Superannuation Act, parliamentary pensions are fixed as a percentage of parliamentary salaries payable to serving members from time to time. The $10,000 reduction in the additional salary for non-cabinet ministers did have the effect of reducing pensions for politicians. In order that the effect of this measure be prospective and not retrospective, the Minister for Finance (Mr Fahey) wrote to the Prime Minister (Mr Howard) on 2 May seeking his agreement to amend the Parliamentary Contributory Superannuation Act of 1948. The Prime Minister has replied to my colleague the Minister for Finance consenting to such an amendment. So that will be covered.

The member for Reid—in a good-natured way, I am sure—raised the issue of my capacity to keep the costs of government under control. Let me assure the member for Reid that I am well equipped to do this and that the business of keeping costs under control is already well under way. He did mention a couple of items but, if you look at the savings that have been made in the first couple of weeks of this government, it really is quite incredible.

Certainly, the reduction in ministerial salaries was a marked move away from the moves that were made by our predecessors. The reduction in the size of the ministry also brings considerable savings to the government. The reduction in the number of consultants to the ministry, from 40 to one—and that one consultant being to the Prime Minister—also saves millions of dollars. So that commitment is there and at the moment we do have under review a number of other areas where we think we could make some considerable savings in the cost of government.

Honourable members interjecting—

Mr JULL —If we are going to fix up this black hole, obviously there has to be an example set by the leadership of the country. I believe that example has already been set and will continue to be set as we review the costs of government. By the interest that has been shown in this bill, with so many government members in the chamber, I know that they too are going to make sure that the government does meet its commitment of reducing unnecessary costs. When you have members such as the member for Gilmore (Mrs Gash) and the member for Petrie (Ms Gambaro) who have certainly been most up-front in terms of their commitment to slashing government expenditure, you can see the sort of backup that this government is going to have as it tries to rationalise the cost of government in Australia.

I also thank the member for Moreton (Mr Hardgrave) for his contribution. I am fully aware of that particular Lions club as it used to be in my constituency. I will not tell you some of the things that I was fined for over the years, but I know from the membership of that club that they too would be very interested in the cost reduction.

This bill does provide some very real savings in the money that is going to be required not only for this year, under the new government, but also over coming years when we will see significant savings. I understand the bid for next financial year will be $1.6 million, which is a reduction of what we are looking for at the moment; that is, $1.64 million to cover the costs of the salaries of ministers of the previous government. I thank those who have contributed to the bill. We look forward to its speedy passage in the other place.

Question resolved in the affirmative.

Bill read a second time.

Message from the Governor-General recommending appropriation announced.

Bill—by leave—reported to the House without amendment.