Doug Cameron (NSW, Australian Labor Party, Shadow Minister for Human Services) Share this | Link to this | Hansard source

I rise today to speak on the Public Governance, Performance and Accountability Amendment Bill 2014, which Labor is supporting. The bill makes a series of amendments to the Public Governance, Performance and Accountability Act 2013. The legislation that the bill we are debating today seeks to amend forms part of the work of the financial reform framework that we commenced when we were in government.

This commenced with the announcement of the Commonwealth Financial Accountability Review, otherwise known as CFAR, in December 2010, when my colleague the Leader of the Opposition in the Senate, Senator Wong, was Minister for Finance and Deregulation. Through a series of consultations and discussions, the former Labor government introduced and passed the Public Governance, Performance and Accountability Bill 2013. The Public Governance, Performance and Accountability Act, which commences operation on 1 July 2014, will replace the Financial Management and Accountability Act 1997 and the Commonwealth Authorities and Companies Act 1997 as the primary financial framework legislation of the Commonwealth.

The Public Governance, Performance and Accountability Act will consolidate in one piece of legislation all of the governance, performance and accountability requirements for Commonwealth government entities. The Public Governance, Performance and Accountability Act aims to improve transparency and consistency across Commonwealth operations.

The Public Governance, Performance and Accountability Act is 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 Public Governance, Performance and Accountability 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. The act 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 almost 12 month-period since its passage has allowed for further consultation and consideration by relevant stakeholders in order to refine the operation of the Public Governance, Performance and Accountability Act.

The amendments contained within the bill being debated today are a result of this consultation and consideration period, which commenced when we were in government. We in the opposition will be supporting this bill and the amendments contained in it. Overall, the amendments in this bill 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 Public Governance, Performance and Accountability Act.

The rules, which will provide further clarification or detail to the main act in the same way that the current regulations through the Financial Management And Accountability Act 1997 and the Commonwealth Authorities and Companies Act 1997 operate, are not part of the legislation being debated today and I do not propose to discuss these any further.

Given that Labor will be supporting this bill and the amendments contained in it, I will not be going through all the amendments being considered today in detail. In summary, the opposition will support the passage of the bill, which makes a series of amendments to the Public Governance, Performance and Accountability Act. These amendments are either minor or technical, or sensible substantive amendments that do not detract from the intent and objective of the Public Governance, Performance and Accountability Act.

Brett Mason (Queensland, Liberal Party, Parliamentary Secretary to the Minister for Foreign Affairs) Share this | Link to this | Hansard source

I thank Senator Cameron for his contribution. The Public Governance, Performance and Accountability Amendment Bill 2014 before us, if enacted, would make a number of technical changes to clarify, simplify, enhance and improve the understanding and operation of the Public Governance, Performance and Accountability Act 2013 and the supporting rules. The related legislation, which takes effect from 1 July this year, will modernise the Commonwealth's current financial accountability performance and reporting frameworks.

As Senator Cameron mentioned, the bill incorporates specific amendments in response to the recommendations of the Joint Committee of Public Accounts and Audit to reduce potential confusion regarding the duties of public officials who are subject to the conduct of the Australian Public Service.

The PGPA Act will also put beyond doubt the continuing powers of the Auditor-General to conduct a performance audit of a Commonwealth entity at any time. Corresponding adjustments on duties of officials will be included in the Public Governance, Performance and Accountability (Consequential and Transitional Provisions) Bill 2014, which will be introduced into parliament next week. Those amendments will also ensure symmetry of duties for those officials who are employed under the Parliamentary Service Act 1999.

The amendments contained within this bill support a better way for how the Commonwealth does its business. I commend the bill to the Senate.

Question agreed to.

Bill read a second time.