Suspended Kiama MP Gareth Ward should continue to be paid his salary while he fights sexual assault charges, according to a parliamentary committee.
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Mr Ward was suspended from parliament in March after he was charged with the alleged sexual abuse of a teenage boy and a man.
Mr Ward has always maintained he is innocent and is intent on fighting the charges.
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At the time of the suspension Acting Premier Paul Toole said the government was seeking advice on whether it could withhold Mr Ward's salary and other entitlements.
The answer from the parliamentary privilege and ethics committee is that it cannot be done without enacting legislation, which it recommended the government not pursue as it could face a legal challenge.
"This inquiry referral raised significant and complex constitutional, legal and procedural issues, which are fundamental to our system of government and the role of the courts," the committee's final report stated.
The suspension from parliament does not restrict him from carrying out other duties as the Kiama MP, though the Education Minister has banned him from attending schools.
The committee also recommended there was nothing the government could realistically do to stop Mr Ward from carrying out his MP duties.
"The committee recommends that a Member suspended from the service of the House should be able to continue to represent their electorate through the remaining mechanisms available to them as a Member of the Legislative Assembly which do not involve their actual participation in debates or proceedings in the House or Committees," the committee's final report stated.
These mechanisms included accessing his electorate office resources and staff, make representations for constituents, and being able to lodge questions on notice and petitions to parliament.
Mr Ward said he was "disappointed that some so-called conservatives believe in the presumption of innocence when it suits them, but are happy to discard it when it doesn't".
"I have a job to do and I will continue to do it," he said.
"I have been overwhelmed by more than 1000 emails and messages of support from my community who are wanting me to stay as their member.
"I've continued to work as a local member of parliament and I'm deeply disappointed that there are some people who believe that a mere basis of an allegation is a reason to call for people to resign when those allegations have not been tested in court."