47Disclosure of terms of settlement

47  Disclosure of terms of settlement

 (1) An entity may only agree that the terms of a settlement are confidential and cannot be disclosed, or seek to include such a condition in a settlement, if the entity:

 (a) satisfies itself (including by raising the matter with a party requesting the condition) that such a condition is necessary to protect the Commonwealth’s interests; and

 (b) seeks to incorporate an exception to enable voluntary disclosure of the settlement (in whole or in part) to the Parliament or to a Parliamentary Committee; and

 (c) where practicable, consults the responsible Minister before agreeing to a settlement inhibiting voluntary disclosure to the Parliament or to a Parliamentary Committee.

 (2) An entity must tell the other party to a confidential settlement that disclosure of the settlement may nevertheless be required by law, and in particular, to the Parliament or to a Parliamentary Committee which has power to compel disclosure.

Note: For example, it may be in the Commonwealth’s interests to agree to a confidential settlement if the Commonwealth seeks to settle a claim against it on the condition that the terms of settlement not be disclosed, with a view to avoiding prejudice in responding to other similar claims against it.