Helen Coonan (NSW, Liberal Party, Shadow Minister for Human Services) Share this | Link to this | Hansard source

In speaking to this bill briefly, I indicate that the coalition will be supporting the Governance Review Implementation (AASB and AUASB) Bill 2008. It is technical in nature but it is very straightforward. It seeks to improve corporate governance in Australia. The bill will transfer the governance of the Australian Accounting Standards Board and the Auditing and Assurance Standards Board to the Financial Management and Accountability Act 1996. The Uhrig review, which reported in 2003, identified issues with existing governance arrangements and set about identifying options to improve the performance to get the best long-term results from these statutory authorities. Comparing these two bodies against the Uhrig review templates shows that we would be better served with the AASB and the AUASB transferred to be under the authority of the Financial Management and Accountability Act. The measure is designed to improve existing accountability and governance arrangements while maintaining operational autonomy. The Financial Reporting Council will maintain the strategic oversight of both these boards. There will be no changes to the statutory functions performed by either of the agencies, other than to enhance the financial and administrative arrangements of the board, which includes consequential changes to the Financial Reporting Council functions in relation to the approval of finance and administrative matters.

The bill, like others debated in this non-controversial part of the order of the day, is essentially a continuation of the good work undertaken by the former Howard government on corporate governance reform, and we are very pleased to support this bill.

Barnaby Joyce (Queensland, National Party) Share this | Link to this | Hansard source

Very briefly, I think it is incumbent upon me, being an accountant, to make some observations about the Governance Review Implementation (AASB and AUASB) Bill 2008. I concur with what Senator Coonan has said. In discussions with both the CPAs and chartered accountants, they do not anticipate any ramifications in the way the standards would operate. Obviously the standards underpin the whole process of how, in accountancy, we do our job. This is something that has been pursued since the Uhrig review. It was also pursued in the 1975 royal commission on Australian government administration, which argued for greater flexibility, and that has also had an influence on this bill. For those peculiar individuals who are out there listening to this and have a strong interest in accountancy standards, there is and there has been some oversight of this.

Kim Carr (Victoria, Australian Labor Party, Minister for Innovation, Industry, Science and Research) Share this | Link to this | Hansard source

I commend the bill to the chamber.

Question agreed to.

Bill read a second time.