Turnbull says whether Bob Day resigns is 'a matter for him'

A key crossbencher says he will stay on in parliament until important government legislation is debated, despite promising to resign because his national home building company went into liquidation.

Bob Day in Sydney, March 24, 2016. Source: AAP

Senator Bob Day has broken his silence of sorts, to outline why he’s delaying resigning as promised after the collapse of his home building company which owes millions of dollars and left hundreds of Australians with unfinished homes.

Mr Day took to Twitter this morning to say that if he left the Senate now there would be no Family First Vote and one less vote for South Australia.

“There isn’t time to install a replacement before the year’s end.”

He also outlined what critics from Labor and the Greens suspected, that the conservative Senator wants to hang around so he can support contentious government legislation - the same sex marriage plebiscite and the two industrial relations bills which triggered the double dissolution election, the Australian Building and Construction Commission and Registered Organisations.

Senator Day said they are too important for him to miss "even one day" of being in the Senate, despite the fact that since the new Parliament started on August 30th, he’s only attended three of the 15 sitting days (including Senate estimates).

The government has granted him personal leave for the rest.  

Prime Minister Malcolm Turnbull has dismissed growing calls to refuse to accept the Senator's vote.

"Bob Day's vote and his seat in the Senate is a matter for him, he is not a member of the government," Mr Turnbull told reporters in Birdsville in outback Queensland on Wednesday.

"Senator Day is an independent crossbench Senator. How he votes, when he resigns is a matter for him."

On Tuesday, SBS News reported that Bob Day would continue to earn $3827 (before tax) for each week that he delays his resignation.

Last Monday, Senator Day told his staff “I will of course resign” from the Senate after he announced that his Home Australia group was being placed in liquidation, with more than 200 unfinished homes in five states.

But with his chosen successor to replace him in the Senate now being challenged by at least half a dozen candidates, Senator Day is hanging on to his seat and will continue to be paid the senator salary of $199,040 a year.

That means for every week he delays handing in his notice to Senate President Stephen Parry, he earns $3827 – or $545 per day - before tax.

"Senator Day is an independent crossbench senator. How he votes, when he resigns is a matter for him."

'Utterly disgusting'

Since the new parliament started on August 30, he’s been paid $30,616 despite only turning up for those three days. 

That's infuriated Jenny St George, a customer who waited three years for her Sydney home to be built, only to be left with it full of defects including a sagging floor.

"We're absolutely and utterly disgusted with him," Ms St George told SBS.

"I'm just horrified that he's still there and has taken his wage."

Labor said not only is Senator Day still being paid by the taxpayer, but he will be able to vote in favour of the Turnbull government’s two union corruption bills when they reach the Senate next month.

He would be one of the nine crossbench votes needed to pass the Australian Building and Construction Commission and Registered Organisations bills – the two bills which triggered July’s double dissolution election.

“Clearly the government is desperate to hang onto Senator Day's vote. Just as we saw guns being traded for votes last week, now we see insolvency and bankruptcy issues being traded off for votes,” Opposition Leader Bill Shorten said.

Greens leader Richard Di Natale, who also opposes the union-related bills, said Senator Day’s priorities are all wrong.

“Senator Day should resign immediately, he should focus on helping those many people who face an uncertain future,” he told reporters in Melbourne.

Bob Day hasn't been officially declared bankrupt or insolvent, which - under the constitution - would disqualify him.

His crossbench friend, Senator David Leyonhjelm, said Senator Day had indicated he wanted to stick around long enough to vote for the government bill to restore the Australian Building and Construction Commission.

"If a buyer is found and takes it off his hands... then obviously he won't go personally bankrupt, so he will be under no obligation to leave and I hope he will (stay)," Senator Leyonhjelm told Sky News on Tuesday.

"My thinking is he probably won't resign until late this year or early next year - if he goes," the NSW Senator said.

The Opposition says with all the pain caused to so many home owners, his vote is tainted and the government shouldn’t accept it.

Liquidator McGrathNicol estimates creditors are owed $12.5m.

While most victims will be covered by insurance, 11 families in NSW will almost certainly lose every cent they’re owed – because the builder failed to lodge their home warranty policies.

That’s a $26,000 deposit down the drain for Dominic and Elizabeth Scuteri, who live in Sydney’s south-west.

Through his office, Bob Day declined to comment to SBS about his future intentions.

The minister in charge of getting the union bills passed, Michaelia Cash, says these are all matters for him and Family First.