NO.024

NOMINATION TO THE EUROPEAN BANK FOR RECONSTRUCTION AND DEVELOPMENT

The Acting Treasurer today refuted media reports concerning the terms of Mr

Peter Reith’s nomination as an Executive Director at the European Bank for Reconstruction

and Development in London, as announced by the Treasurer on 16 April 2003. As

an Executive Director of the Bank Mr Reith will be employed by the Bank, not

by the Commonwealth.

A condition of the nomination was that the EBRD position be treated as if it

were an “office of profit” under the Commonwealth for the purposes

of the Parliamentary Contributory Superannuation Scheme (PCSS). Under the rules

governing the PCSS, a parliamentary pension payable to a former Member of Parliament

who is appointed to an office of profit under the Commonwealth or a State is

reduced.

Mr Reith agreed to this condition prior to his nomination and he will pay to

the Commonwealth an amount equivalent to fifty percent of the after-tax amount

of his parliamentary pension. This is the maximum amount by which a pension

can be reduced under the provisions of the Parliamentary Contributory Superannuation

Act.

Canberra

23 April 2003

Contact: David Wawn

Office of the Hon Nick Minchin

(02) 6277 7400