Material personal interest (MPI)

Councillors are required to disclose personal interests which could influence the decision making about matters before council. This includes disclosing a material personal interest (MPI) where council decisions may result in a direct or indirect benefit or loss to the councillor or close associate. A close associate of a councillor could be a spouse, a family member including a parent, child or sibling, a partner, employer or person otherwise prescribed under a regulation.

A councillor who has identified that they have an MPI in a matter under consideration at an ordinary meeting or a committee meeting of council must:

• inform the meeting that they have an MPI in the matter and outline the nature of the interest
• leave the meeting room, including any area set aside for the public
• remain out of the meeting room and public area while the matter is being discussed and votes taken.

The council minutes must record the name of a councillor who has an MPI or possible MPI in a matter and the nature of that MPI. The minutes must be available on the council's website.

Schedule 4 of the Local Government Act 2009 defines those matters before a council in which an MPI does NOT occur. These include discussions which are defined as ordinary business and include matters such as making and levying rates and charges, or setting fees for council services.

MPI Example: A council has called for tenders to provide barbecues for all parks in the local government area and one of the councillors has a share in a business that is tendering for the supply and installation of the barbecues. The councillor has an MPI in the outcomes of the tender process and final decision of council.

Legislation extract

• Local Government Act 2009 – 172 Councillor’s material personal interest at a meeting
  
  

  172 Councillor’s material personal interest at a meeting (1) This section applies if— (a) a matter is to be discussed at a meeting of a local government, or any of its committees; and (b) the matter is not an ordinary business matter; and (c) a councillor has a material personal interest in the matter. Note— See the dictionary for the definition of an ordinary business matter. (2) A councillor has a material personal interest in the matter if any of the following persons stands to gain a benefit, or suffer a loss, (either directly or indirectly) depending on the outcome of the consideration of the matter at the meeting— (a) the councillor; (b) a spouse of the councillor; (c) a parent, child or sibling of the councillor; (d) a partner of the councillor; (e) an employer (other than a government entity) of the councillor; (f) an entity (other than a government entity) of which the councillor is a member; (g) another person prescribed under a regulation. (3) The councillor must— (a) inform the meeting of the councillor’s material personal interest in the matter; and (b) leave the meeting room (including any area set aside for the public), and stay out of the meeting room while the matter is being discussed and voted on. Maximum penalty— (a) if the councillor votes on the matter with an intention to gain a benefit, or avoid a loss, for the councillor or someone else—200 penalty units or 2 years imprisonment; or (b) otherwise—85 penalty units. (4) However, a councillor does not contravene subsection (3) by taking part in the meeting, or being in the chamber where the meeting is being conducted, if— (a) the councillor is a person to whom approval is given under subsection (5); and (b) the councillor is complying with all conditions on which the approval is given. (5) The Minister may, by signed notice, approve a councillor taking part in the meeting, or being in the chamber where the meeting is being conducted, if— (a) because of the number of councillors subject to the obligation under this section, conduct of the meeting would be obstructed if the approval were not given; or (b) it appears to the Minister to be in the interests of the local government area that the approval be given. (6) The Minister may give the approval subject to conditions stated in the notice. (7) The following information must be recorded in the minutes of the meeting, and on the local government’s website— (a) the name of the councillor who has the material personal interest, or possible material personal interest, in a matter; (b) the nature of the material personal interest, or possible material personal interest, as described by the councillor; (c) whether the councillor took part in the meeting, or was in the chamber during the meeting, under an approval under subsection (5).