Tony Smith (Casey, Liberal Party) Share this | Hansard source

On behalf of the Joint Committee of Public Accounts and Audit I present the committee’s report entitled Report 408: Annual report 2005-2006, together with executive minutes on reports Nos. 391, 395, 398, 399, 400, 402, 403 and 404.

Ordered that the report be made a parliamentary paper.

I am pleased to present the annual report of the Joint Committee of Public Accounts and Audit.  The report is an important accountability mechanism by which parliament, and through it the public, can conveniently assess the committee’s performance.

The duties of the committee are described in the Public Accounts and Audit Committee Act. In general terms, the duties are to: examine the financial affairs of authorities of the Commonwealth, and examine all reports of the Auditor-General; consider the operations and resources of the Audit Office; approve or reject the Prime Minister’s recommendation for appointment of the Auditor-General and the Independent Auditor; and increase parliamentary and public awareness of the financial and related operations of government.

During 2005-06 the committee has fulfilled each of these responsibilities. Unlike other committees, the Joint Committee of Public Accounts and Audit can initiate its own policy inquiries without permission or reference to any minister, government or the parliament.  During 2005-06 the committee has undertaken three major policy inquiries.

The committee continued its reopened inquiry into aviation security in Australia and in November 2005 tabled Report 406: Developments in aviation security since the committee’s June 2004 ‘Report 400—Review of aviation security in Australia—an interim report’. The interim report builds on the recommendations made in An independent review of airport security and policing for the Australian government by the Rt Hon. Sir John Wheeler DL, which was released in September 2005.

The committee received 81 submissions and undertook public hearings and inspections in major capital cities and major regional areas right across Australia. The committee has now concluded taking evidence for the inquiry and will deliver its final report in the near future.

In December 2005 the committee resolved to inquire into a range of taxation matters. At September 2006 the inquiry had received 56 submissions and taken evidence at public hearings in Canberra, Sydney, Launceston and Melbourne. The committee expects to report in the first half of 2007.

In March 2006 the committee resolved to review the financial reporting and equipment acquisition of both the Department of Defence and Defence Materiel Organisation. As well, the committee has continued a very full schedule in fulfilling its responsibility to review Auditor-General’s reports, during 2005-06.

Report 407: Review of Auditor-General’s Reports tabled between 18 January and 18 April 2005 was tabled in August 2006. The report contains the committee’s findings and recommendations following three public hearings into five Auditor’s reports. The reports were selected for special consideration from the 21 Auditor-General reports that came before the committee.

The committee has concluded taking evidence on another 16 reports that it selected from the 59 which were tabled between 17 May 2005 and 16 March of this year. The committee took evidence on the selected reports at eight public hearings. It will table its considerations and recommendations in the near future.

In May 2006, the committee reviewed the Australian National Audit Office draft budget estimates for 2006-07, and received a briefing from the Audit Office. The Auditor-General advised the committee that the office would manage within the allocated budget for 2006-07 without compromising its financial auditing function.

Section 8A of the Public Accounts and Audit Committee Act provides for the committee to approve or reject the audit minister’s—currently the Prime Minister’s—recommendation for an appointment of the Auditor-General or Independent Auditor. On 29 March 2006 the committee unanimously agreed to endorse the nomination of Mr Geoff Wilson as Independent Auditor and wrote to the Prime Minister accordingly. On behalf of the committee, I thank the previous Independent Auditor, Mr Michael Coleman. I would also like to express appreciation on behalf of the committee for the high quality of support that the Auditor-General, Mr Ian McPhee, and his staff have provided to us in relation to our inquiries.

Finally, I wish to thank my colleagues on the committee for their hard work and commitment to the committee during the year. This is the first annual report that I present as Chair of the Joint Committee of Public Accounts and Audit. On behalf of the committee I would like to thank the previous chair, the Hon. Bob Baldwin. I commend the committee’s annual report to the House.

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