Barbara Pocock (SA, Australian Greens) Share this | Link to this | Hansard source

BARBARA POCOCK () (): My question is directed to Minister for Finance, Katy Gallagher. Yesterday the Senate's consultant inquiry released a report, supported across this chamber, which found that PwC engaged in a shocking and calculated breach of trust and a deliberate cover-up. The New South Wales government has suspended PwC from working on government tax. Queensland Treasury has banned contracts with PwC, as has the Reserve Bank. Meanwhile, your government continues to award contracts to PwC. One with the health department was published on AusTender just last week. When will you ban all contracts with PwC and cancel PwC's registration as a tax agent?

Katy Gallagher (ACT, Australian Labor Party, Minister for the Public Service) Share this | Link to this | Hansard source

I thank Senator Pocock for the question and for the work that she's been doing, along with my colleague Senator Deb O'Neill, on inquiring into the breaches of confidentiality by PwC. As I have said in estimates and in other places, we are deeply disappointed and angry at the actions of PwC in relation to this matter and we have taken a number of steps to deal with it in the short term. The PwC issue has been referred to the AFP, and the Tax Practitioners Board investigation is continuing. There are recommendations from the 2019 review of the Tax Practitioners Board that weren't progressed. We are progressing those. We've also provided additional funding to the Tax Practitioners Board to give them the investment they need to do compliance investigations.

In relation to procurement—and I would again repeat that the issue that has been brought to light by PwC's behaviour was a breach of a confidentiality agreement—we have acted in the area of procurement. We've directed PwC to stand down from government contracts any personnel who were involved in or had knowledge of tax matters from government contracts. We've added new clauses into standard government procurement contracts to further strengthen the ability of the government to cancel these contracts in response to behaviour in the future. We've reminded all departmental secretaries that ethical behaviour must be taken into account as part of the value-for-money exercise under the procurement framework, and we've started work on a supplier code of conduct that will outline behavioural standards expected from suppliers during procurement processes. We will consider further actions as required. (Time expired)

Sue Lines (President) Share this | Link to this | Hansard source

Senator Pocock, first supplementary?

Barbara Pocock (SA, Australian Greens) Share this | Link to this | Hansard source

AFP Commissioner Kershaw is mates with former New South Wales police commissioner Mick Fuller, who is now a partner at PwC. Last night we learned these mates have recently worked together to generate a new $750,000 contract between PwC and the AFP, without a tender. What actions have you taken to give Australians confidence that the AFP's investigation into PwC will not be influenced by close relationships?

Katy Gallagher (ACT, Australian Labor Party, Minister for the Public Service) Share this | Link to this | Hansard source

In relation to the report, there was a report to the AFP on 24 May relating to allegations of criminal conduct. I think it's critical that the AFP is able to undertake its investigation into these allegations without any further comment on that specifically.

In relation to the issue raised by Senator Pocock, the assertions that are seeking to call into question the integrity of the AFP—an agency that is committed to protecting Australians from serious threats—are extremely disappointing. AFP officers spend each and every day working to protect Australians and Australians' interests. They're not easy jobs. The work is often dangerous, and many AFP officers, just like police all around the country, put their lives at risk every day to ensure that we can go about our lives safely. The Australian public should have every confidence that, just like all serious criminal investigations, this investigation into PwC will be undertaken by experienced investigators within the AFP's special investigations team.

Sue Lines (President) Share this | Link to this | Hansard source

Senator Pocock, second supplementary?

Barbara Pocock (SA, Australian Greens) Share this | Link to this | Hansard source

Minister, my concerns are well based. Half the internal audit committee of the AFP are former PwC partners with more than 20 years standing as partners. Every year PwC donates to the Labor Party—last year over $120,000 in direct donations alone. Voters are calling me and asking: is this cash for contracts? I had one such call this morning. At the very least, this is a problem of perception. When will you ban donations from any consultancy engaging in government work?

Katy Gallagher (ACT, Australian Labor Party, Minister for the Public Service) Share this | Link to this | Hansard source

Political donations are governed by specific donations law and are a matter for the party organisation. They're not a matter for the government. But I would say, and I have said this in estimates when it was raised by a number of Greens senators: if there is a specific allegation of anything inappropriate that doesn't adhere to electoral donation laws or procurement processes in government then make it, but don't just stand and smear. We have taken appropriate action against this breach of trust and this outrageous behaviour from PwC. We have taken action through the Treasury, we have taken action through procurement. The matter has been referred to the police. That is what the government should have done. We have done all of those things, and if there is anything further that we need to do in response—and we will read the committee's report—then we will consider it.

Sue Lines (President) Share this | Link to this | Hansard source

Before I call the Senator Bilyk, I remind senators that the latter part of that question was precisely what I referred to in my statement.