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Cost of an SA MP fleet vehicle scheme has not risen in 15 years

It is a fleet vehicle scheme embraced by nearly all of South Australia’s State MPs. But is that surprising when the cost of the scheme has not changed in 15 years?

Petrol prices: How to save at the pump

Nine out of 10 South Australian MPs are enjoying the benefits of a fleet car scheme that has not risen in cost for them for 15 years, new figures reveal.

Of the 69 MPs in state parliament, only six are not leasing the vehicles that can be driven by staff, spouses or partners and children.

MPs can have a base model car such as a Toyota Corolla sedan for a flat rate of just $7000 a year – that comes with an unlimited fuel card.

Larger vehicles such as a Toyota Prado can push the cost up to about $8500 a year.

Cabinet ministers, who have chauffeur-driven cars, also take advantage of the lease arrangements.

Since the scheme started in January 2005, average monthly petrol prices have jumped from 97c a litre to an average in July of $1.21/litre.

MPs can have a base model car such as a Toyota sedan for a flat rate of just $7000 a year – that comes with an unlimited fuel card.
MPs can have a base model car such as a Toyota sedan for a flat rate of just $7000 a year – that comes with an unlimited fuel card.

Current MPs not using the scheme are Liberals Rob Lucas, Dan Cregan and Rachel Sanderson, independent Frances Bedford, Labor’s Dana Wortley and Green Tammy Franks.

Greens MP Mark Parnell, who leases a Toyota Prius for $7000 a year, supports the scheme.

But this week he told the Remuneration Tribunal, which sets politicians’ pay and conditions, that it should take the deal into account to ensure MPs are not double dipping.

“There are many allowances that the tribunal is not responsible for, but in order to ensure fairness and avoid double-dipping, they should all be taken into account when the tribunal is setting allowances,” he said.

Mr Parnell said the Electorate Allowance – that ranges from about $16,000 to $52,000, or $22,000 for upper house MPs – was a perfect example.

“The allowance for country members is far higher than city-based MPs, presumably on the basis that it costs more to travel around the electorate,” he said.

“Well actually, it doesn’t, because fuel is included in all Fleet SA vehicles.

“The only additional cost might be occasional overnight accommodation in country towns that are far from a member’s home.”

Greens MLC Mark Parnell told the Remuneration Tribunal that it should take the deal into account to ensure MPs are not double dipping.
Greens MLC Mark Parnell told the Remuneration Tribunal that it should take the deal into account to ensure MPs are not double dipping.
Treasurer Rob Lucas said a lot of people in the private sector in executive positions have similar arrangements.
Treasurer Rob Lucas said a lot of people in the private sector in executive positions have similar arrangements.

Mr Parnell, however, pointed out MPs receive $13,977 each year as the “travel” component of another scheme, the “Common Allowance”, which can be used for accommodation away from home.

Treasurer Rob Lucas said a lot of people in the private sector in executive positions have similar arrangements.

“This was the argument that was always put forward when they were introduced by the former Labor government and we agreed with them at the time,” he said.

He said federal MPs get a similar deal for $700 a year.

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Original URL: https://www.adelaidenow.com.au/news/south-australia/cost-of-an-sa-mp-fleet-vehicle-scheme-has-not-risen-in-15-years/news-story/710c9f8ce0c73f82e5939914be4a6096