Williams taps judge to review MHA claim system

Premier Danny Williams has called on one of Newfoundland and Labrador's top judges to review whether members of the legislature should be able to keep tax-free allowances at the centre of a widening political storm.

Williams said Monday he has asked Derek Green, the chief justice of the Newfoundland Supreme Court trial division, torecommend how members of the house of assemblyshould becompensated for their constituency allowances.

Williams announced theinvestigation — which he stressed is not a formal judicial inquiry — in the wake of acontroversy sparked by an audit of constituency funds involvingthree current and one former MHA.

Williams asked one of his key ministers, Ed Byrne, to resign last Wednesday when he learned of Auditor General John Noseworthy's investigation.

Williams also said he will equip officials in the finance and justice departments with whatever resources they need to strengthen internal audit procedures and controls.

"We have to try and strike the balance here between the autonomy of the legislature… and the need for accountability," Williams said.

"That's a very delicate balance. I want to make sure that government doesn't overstep its bounds and does what is appropriate within the law," he added.

"However, we have to make sure that any expenditures or any practices taking place in the house of assembly are truly accountable to the people of Newfoundland and Labrador."

Green's review, Williams said, will notdeal withpastcomplaints thatare the subject of investigations involving both the Royal Newfoundland Constabulary and the auditor general's office.

However, Williams said Green is entitled to see whether constituency allowances should be maintained or scrapped. The allowances are meant to cover expenses in running a constituency office, fromthe rent to purchase of supplies.

Noseworthy's audit found that Byrne, the former government house leader,was compensated for more than 10 times the amount to which he was entitled over a two-year period. Thatincluded some of theperiod in which Byrne wasin cabinet.

"We can't have a situation like this go on again, and it won't happen again," Williams said.

"Perhaps the compensation package has to be done in a different manner, so that there isn't this discretionary ability for abuse."

Former auditor general Elizabeth Marshall— now a Tory backbench MHA— was barred in 2000 and in 2002 from auditing MHA claims.

Following the 2003 election, Williams reinstated the auditor general's ability to review MHA spending, as part of a broader accountability initiative.

Williams, who said he was not aware of any alleged impropriety at the time, said he will introduce a bill in the fall that will enshrine the auditor general's right to audit accounts of the legislature.

Williams said Green's recommendations could be ready by the fall, and they will be submitted to the Internal Economy Commission, a bipartisan groupthat governs the legislature's internal dealings.

Meanwhile, the director of financial operations at the house of assembly has been suspended and no longer has access to Confederation Building.