Kate Lundy (ACT, Australian Labor Party, Parliamentary Secretary for Immigration and Citizenship) Share this | Link to this | Hansard source

I table a revised explanatory memorandum relating to the bill and move:

That this bill be now read a second time.

I seek leave to have the second reading speech incorporated in Hansard.

Leave granted.

The speech read as follows—

The Financial Framework Legislation Amendment Bill 2010 is an omnibus Bill that would, if passed, affect 31 Acts, involving the amendment of 25 Acts and the repeal of 6.

This is the seventh Financial Framework Legislation Amendment Bill (FFLA Bill) since 2004 and is in substantially the same form as the FFLA Bill I introduced on 23 June 2010. These Amendment Bills build on improvements to the Commonwealth’s financial governance framework and have traditionally had broad Parliamentary support.

This Bill contains three major themes, being the repeal of redundant special appropriations, the improvement of the laws underpinning the Commonwealth’s financial governance framework, and updating the financial governance of specific bodies.

On the first theme, the Bill would, if enacted, repeal 20 redundant special appropriations, including 6 Acts in their entirety. This continues the Government’s commitment to regularly review special appropriations, as given in the Government’s response of December 2008 to the report by former Senator Andrew Murray, Operation Sunlight – Overhauling Budgetary Transparency.

Second, the Bill would improve the governance framework established by the Financial Management and Accountability Act 1997 and the Commonwealth Authorities and Companies Act 1997, known colloquially as the “FMA Act” and the “CAC Act”.

The Bill would allow Ministers to delegate certain functions under the CAC Act to Departmental Secretaries, relating to the oversight of Commonwealth authorities and Commonwealth companies. Introducing such specific delegation powers would strengthen existing arrangements, that currently rely on authorisations by Ministers, for obtaining budget estimates and monthly financial statements.

The Bill would also address the situation of FMA Act agencies, and Commonwealth authorities operating under the CAC Act, that are interjurisdictional in nature, by amending those Acts to empower relevant State and Territory Ministers to request information about their operations. This power would be commensurate with the power currently held by Commonwealth Ministers in this regard, with the details to be set out in regulations. This would enable full consultation to occur between the Commonwealth and relevant States and Territories, before such requirements are put in place, and would also allow the requirements to be calibrated on a case-by-case basis.

The Bill would also strengthen the reporting to Parliament of the Commonwealth’s involvement in companies. Currently the CAC Act obliges responsible Ministers to inform Parliament when the Commonwealth acquires or disposes of an interest in a company. The Bill would relocate this requirement more appropriately to Part 5 of the FMA Act, which currently deals with investments by the Commonwealth.

Third, the Bill would clarify the governance arrangements of several specific bodies. These have been developed after consultation with relevant Ministers, departments and agencies.

In particular, the Bill would consolidate the Australian Institute of Criminology with the Criminology Research Council into a single agency, while at the same time transferring them from the CAC Act to the FMA Act. The Bill would also transfer the governance of the Australian Law Reform Commission from the CAC Act to the FMA Act.

Further, this Bill would bring the governance of the National Transport Commission under the CAC Act, because the Commission currently operates outside existing frameworks, other than for its annual reporting.

This is consistent with the Finance Department’s Governance Arrangements for Australian Government Bodies, the Government’s policy on governance arrangements.

Finally, the Bill would repeal legislation that had established the Office of Evaluation and Audit for Indigenous Programs, in recognition of this function having now been successfully absorbed into the Australian National Audit Office.

I commend the Bill to the Senate.

Mitch Fifield (Victoria, Liberal Party, Manager of Opposition Business in the Senate) Share this | Link to this | Hansard source

I rise to speak on the Financial Framework Legislation Amendment Bill 2010. This is the seventh financial framework legislation amendment bill since 2004. These bills have continued the coalition’s work to promote transparent and accountable government finances for Australian government departments, agencies, Commonwealth authorities and companies, which are predominantly contained in the Financial Management and Accountability Act 1997 and the Commonwealth Authorities and Companies Act 1997. This bill in particular seeks to update the framework, improve operational efficiency and assist with the operation of interjurisdictional entities.

Firstly, the bill repeals 20 redundant special appropriations including six acts in their entirety. Secondly, the bill seeks to improve the governance framework established by the FMA Act and the CAC Act—that is an acronym that has always troubled me—both of which govern the management and accountability of Commonwealth agencies, authorities and the executive arm of government. The bill will allow ministers to delegate certain functions under the CAC Act to departmental secretaries, relating to the oversight of Commonwealth authorities and Commonwealth companies. It also seeks to allow relevant state and territory ministers to request information about the FMA Act, agencies and Commonwealth authorities operating under the CAC Act.

Thirdly, the bill consolidates the Australian Institute of Criminology with the Criminology Research Council into a single agency while also transferring them from the CAC Act to the FMA Act. It also seeks to transfer the governance of the Australian Law Reform Commission from the CAC Act to the FMA Act and, further, the National Transport Commission will be brought under the CAC, as it currently sits outside existing frameworks other than for its annual reporting.

The coalition broadly supports these amendments, however I draw the house’s attention to page 5.2 of the Department of Finance and Deregulation red book—the incoming government brief publicly released on 1 October—which stated:

Through this Bill—

the Financial Framework Legislation Amendment Bill 2010—

there is also an opportunity for the Government to reconfirm its support for a strong financial framework dealing with Commonwealth resources by expanding the definition of ‘proper use’ to include ‘economical’.  While proper use already includes ‘efficient, effective and ethical’, inclusion of the word ‘economical’ will increase the focus on the level of resources the Commonwealth applies to achieve outcomes.

This was the department’s subtle way of acknowledging this government’s reckless waste and mismanagement across a range of portfolios. Although I am tempted, in light of the hour of the day I will not go exhaustively through every example, which I know will be a source of great relief to those on the other side. This side of the chamber does support the very careful stewardship of taxpayers’ money. It is not what we have seen over the three years of this government. Rather than elucidating that further, I will just indicate that the opposition will not be opposing the bill.

Kate Lundy (ACT, Australian Labor Party, Parliamentary Secretary for Immigration and Citizenship) Share this | Link to this | Hansard source

The Financial Framework Legislation Amendment Bill 2010 is an omnibus bill that will affect 31 acts, involving the amendment of 25 acts and the repeal of six. The bill contains three major themes: to repeal redundant legislation, to improve the financial governance frameworks and to clarify the governance arrangements of several specific bodies. The government notes in this place that the opposition moved an amendment in the House and we agreed to this amendment. I would like to thank honourable senators for their contribution to the debate and commend the bill to the Senate.

Question agreed to.

Bill read a second time.