Mr Tony Burke (Watson, Australian Labor Party, Shadow Minister for Finance) Share this | Hansard source

I rise today to speak on the Public Governance, Performance and Accountability Amendment Bill 2014. This bill makes a series of amendments to the Public Governance, Performance and Accountability Act 2013. The legislation that we are debating today is supported by the opposition. Much of the work for this legislation was done while Senator Wong was the Minister for Finance. It effectively deals with a number of the probity issues concerning public governance and ensures that many of the provisions currently contained within the Financial Management and Accountability Act 1997 and the Commonwealth Authorities and Companies Act 1997 find their way into the Public Governance, Performance and Accountability Act, which then determines much of the potential framework of the government. It will consolidate in one piece of legislation all the governance, performance and accountability requirements for Commonwealth government entities.    The act aims to improve transparency and consistency across Commonwealth operations. The act is also designed as an evolution to the existing financial framework, containing new elements which are designed to improve the quality of public financial management in the Commonwealth. The act itself was subject to a two-year-long consultation and consideration process prior to being passed by the parliament last year.

The act sets out the principles of a coherent financial framework for all Commonwealth entities and aims to create a financial framework where Commonwealth entities have the flexibility and incentives to adopt appropriate systems and processes that help them to achieve their objectives efficiently and effectively. The nearly twelve-month period since its passage has allowed for further consultation and consideration by relevant stakeholders in order to refine its operation. The amendments contained within the bill being debated today are a result of this consultation, which, as I said, commenced when we were in government. Now in opposition we will be supporting this bill and the amendments contained in it.

Most of the amendments are either minor or technical, or substantive amendments that are sensible to make in order to facilitate the effective operation of the legislation. I would also note the work done by the Joint Committee of Public Accounts and Audit, which has conducted and completed an inquiry into the development of the rules relating to the act. The rules, which will provide further clarification or detail to the main act in the same way that the current regulations to the FMA Act and the CAC Act operate, are not part of the legislation being debated today and I do not propose to take that part of the discussion any further.

Given that we will be supporting this bill and the amendments contained in it, I will not add to the detail that was brought to the attention of the House during the minister's speech. However, in the course of my speech today I will quickly outline some of the more substantive amendments contained in the bill. Items 1 to 7 either insert or amend definitions in the act that are required as a result of new terms being introduced in the bill, or to clarify existing terms in the Act. Items 8 to 61 involve amendments to chapter 2 of the act, which relates to Commonwealth entities. The majority of these items relating to Commonwealth entities—which are departments of state, parliamentary departments, listed entities and body corporates that are not specifically Commonwealth companies—are minor or technical in nature, hardly controversial.

I would like to briefly cover some of the more substantive amendments contained in this section of the bill. Item 14 clarifies the definition of an official for the purposes of the Public Governance, Performance and Accountability Act by replacing the current definition with an expanded set of provisions to make it clear who is covered by the definition of 'official'. Item 17 allows accountable authorities to issue instructions to officials in the same way as the current Chief Executive Instructions are able to be issued under the FMA Act. This is important to ensure that instructions can be given to officials about the management of public resources in the same way that exists under the current legislation.

Items 20 to 27 of the bill clarify that only accountable authorities or members of accountable authorities can have their appointments terminated under section 30 of the act—an important clarification that would avoid the possible confusion that all officials were covered under that particular section. Item 35 of the bill requires annual reports to be provided to ministers by the 15th day of the fourth month after the reporting period, another way of describing October, so that annual reports can be provided as per the current arrangements outlined in the existing financial framework legislation, and that it aligns with the current Senate estimates timetable. Item 39 of the bill clarifies the responsibilities for ministers and officials in relation to the banking of or dealing with relevant money. Items 62 to 64 of the bill involve amendments to chapter 3 of the act relating to Commonwealth companies. These amendments are minor and not controversial, and, most importantly, they maintain consistency with other parts of the Public Governance, Performance and Accountability Act.

I will not go through the remaining items in details so that I do not have to ask to conclude at a later moment. I will say that this goes to important issues of governance within the Commonwealth and it has the support of the opposition.

Debate interrupted.

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