Yvette D'Ath (Petrie, Australian Labor Party) Share this | Hansard source

by leave—As Deputy Chair of the Joint Committee of Public Accounts and Audit, I rise to speak in support of report 422, Review of the 2009-10 Defence Materiel Organisation Major Projects Report. As the chair, the member for Lyne, has already highlighted, this is only the second major project report to be reviewed and reported on by the committee and the third major project report to be produced overall since the Joint Committee of Public Accounts and Audit unanimously agreed to recommend that the Australian National Audit Office receive additional funding to produce an annual report on progress in major defence projects back in December 2006.

It is important to acknowledge the reason such a report was created in the first place, which is to provide a means by which accessible, transparent and accurate information could be made available to the parliament and, importantly, the Australian public about the state of defence major acquisition projects. The government recognises the importance of transparency and accountability in relation to the major project acquisitions by the Defence Materiel Organisation and the important role that the major projects report plays in providing that transparency and accountability.

It is of note that, through its recommendations, the committee has requested that the Defence Materiel Organisation address the base-date dollar issue associated with the qualified audit opinions given, with the resolution of the matter expected for the 2011-12 major project report, the reason being that the qualified audit conclusions have been received for each and every one of the major project reports that have been produced. It is important that we overcome this problem of having these qualified audit conclusions. As the chair has indicated, quite a bit of evidence went to that point and there were questions from the committee members to ensure that we can overcome this problem in the future and provide more transparency.

The work of the Defence Materiel Organisation to improve accountability and transparency in regard to the management of major defence capital acquisition projects and the work that the Defence Materiel Organisation is doing to work with the Australian National Audit Office to ensure this transparency and accountability is acknowledged. However, importantly, we must note that the concerns highlighted through the assurance audit process and consequently the committee's review must be dealt with and addressed by the DMO.

I also take this opportunity to acknowledge and congratulate Mr Ian McPhee, the Auditor-General, and Dr Stephen Gumley, the CEO of DMO, on the cooperative manner in which they and their staff have worked to produce the 2009-10 major projects report. It is my pleasure to commend the report to the House.

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