Robert Oakeshott (Lyne, Independent) Share this | Link to this | Hansard source

by leave—I move:

That this bill be now read a third time.

Mrs Bronwyn Bishop (Mackellar, Liberal Party, Shadow Minister for Seniors) Share this | Link to this | Hansard source

I want to speak on the third reading of the Auditor-General Amendment Bill 2011 for the simple reason that the member for Lyne has negated the effect of his own bill. His bill originally covered three parts. Firstly, it would increase the power of the Auditor-General to chase down government grants to territories and states. Secondly, it would allow the Auditor-General to automatically audit government business enterprises. Thirdly, the most radical aspect was to allow the Auditor-General to audit the private sector firms that do business with the Commonwealth.

If anything demonstrates the lack of independence of the member for Lyne, this bill does so. The member for Lyne has just accepted the government's amendments which negate the effect of his own bill, which was to give greater power to the Auditor-General to chase down grants and moneys given to states and territories and to automatically audit government business enterprises. The government, in the explanatory memorandum to its amendments, said the reason it did not want government business enterprises to be automatically audited by the Auditor-General—and he would have to seek permission which could always be blocked by the government—is that government business enterprises, unlike government agencies where there is an automatic right, were subject to competition. Yet the bill gives an automatic right to the Auditor-General to audit private sector firms, which was never part of his remit before.

We have the nonsensical position where the Auditor-General now has an automatic right to audit private sector firms that do business with the Commonwealth and yet he has no automatic right to audit government business enterprises. It is a ridiculous position that the member for Lyne has allowed. The basis for bringing in his bill in the first place was that a report had been brought down by the Joint Standing Committee on Public Accounts and Audit. The member for Lyne purported to use that as the reason for his bill. He has now gone against that report totally. One of the most important aspects of his bill, and the part that I strenuously supported, related to the automatic right to audit government business enterprises. The reason I argued strongly for that is I well remember when I first came into the parliament—

Anthony Albanese (Grayndler, Australian Labor Party, Leader of the House) Share this | Link to this | Hansard source

Madam Deputy Speaker Burke, I rise on a point of order. This is a third reading motion before the House. House of Representatives Practice provides for a very limited opportunity to make a contribution on the third reading. We have already dealt with the amendments and the amendments have been carried. The member for Mackellar is very restricted indeed, under House of Representatives Practice, in her contribution to this debate. Members on both sides of the House would surely concur with that view.

Mrs Bronwyn Bishop (Mackellar, Liberal Party, Shadow Minister for Seniors) Share this | Link to this | Hansard source

The point I am making is that the member for Lyne has allowed his own bill to be negated in two of the most important aspects that were the reason for his bringing the bill in the first place—that is, the Auditor-General's automatic right to audit government business enterprises. The reason I have always been so strong about that is I well remember when I first came into the parliament and this very building was being built. Some of those on the Joint Committee of Public Accounts, as it was then known, wished to audit the building of Parliament House and look into the rorts by trade unions ripping off the system and escalating costs. The government of the day successfully blocked that by using a legal opinion as to when the government had to give its authority and when the committee had to give its authority. The Auditor-General was held to have no automatic right to audit government business enterprises.

In speaking on the second reading of the member for Lyne's bill, I strongly supported the right of the Auditor-General to have this power and indicated why. The member for Lyne, who spoke forcefully in favour of it, has now succumbed, rolled over to the government and reverted to the position that was there before. He has shown once and for all that the idea that he is truly independent is just not true.

Ms Anna Burke (Chisholm, Deputy-Speaker) Share this | Link to this | Hansard source

The member for Mackellar is now straying from the bill. It is the third reading debate and the member for Mackellar will refer to the bill.

Mrs Bronwyn Bishop (Mackellar, Liberal Party, Shadow Minister for Seniors) Share this | Link to this | Hansard source

It is a very sad day when the very essence of the importance of the bill and all the reasons that the mover put forward for the bill have been wiped out and principle has not been upheld. The one part of the bill that remains and is a huge change to the way that the Auditor-General has ever worked gives him a mandate to automatically audit private sector firms, which will place far greater costs upon private sector firms and, particularly for small businesses, inhibit their ability to seek and win government contracts. The business of the Auditor-General and the private sector audit function are totally different in nature. The Auditor-General's power—and he should have the power granted by this bill to audit government business enterprises—has been taken away, leaving us with the ridiculous position where the Auditor-General does not have an automatic right to audit government business enterprises, but he can automatically audit private sector businesses.

Anthony Albanese (Grayndler, Australian Labor Party, Leader of the House) Share this | Link to this | Hansard source

On a point of order, I refer to pages 374 and 375 of House of Representatives Practice. If the member for Mackellar has concluded her contribution, I will not go further with the point of order. But she might like to read House of Representatives Practice some time.

Mrs Bronwyn Bishop (Mackellar, Liberal Party, Shadow Minister for Seniors) Share this | Link to this | Hansard source

I have read it.

Robert Oakeshott (Lyne, Independent) Share this | Link to this | Hansard source

The contribution from the member for Mackellar was wrong: all three aspects of this bill as originally intended are in place. The intention of the Auditor-General Amendment Bill 2011 was to allow the Auditor-General to work with state auditors to work on either collaborative audits or individual audits to follow the money trail. A lot of Commonwealth business is now done through the states. That is an important reform for the taxpayers of Australia in looking for efficiency for their taxpayers' dollars.

Likewise, the ability to access government business enterprise is still in place. The government amendments remove the minister's right of referral to the Auditor-General. The Joint Committee of Public Accounts and Audit can still do a referral to the Auditor-General for a look at government business enterprises—again, a really important reform for the taxpayers of Australia looking for efficiency for their dollars.

The third aspect with regard to contractors is an important reform when we look at the amount of business done by contractors in delivering programs in Australian public policy today. Defence contracting, for example, is not small business; it is big business. It should have an audit trail and we should know on behalf of taxpayers where that money is being spent, why it is being spent and that it is being spent efficiently. This is an important reform for Australian taxpayers and Australian public policy. I would urge the House to support it on the third reading.

Question put:

That this bill be now read a third time.

The House divided. [12:05]

(The Speaker—Mr Harry Jenkins)

Question agreed to.

Bill read a third time.