JCPAA Report No. 446, Review of the Operations of the Parliamentary Budget Office, 2014
Terms of Reference
On 17 July 2014, the Committee resolved to inquire into and report on the operations of the Parliamentary Budget Office (PBO), with specific regard to:
PBO statutory information gathering powers and access to information, including the Contingency Reserve
PBO reporting of Government progress against a new set of fiscal rules, as recommended by the National Commission of Audit
PBO reporting against medium-term projections of fiscal outlook beyond the forward estimates
best practice for independent fiscal institutions as identified by the International Monetary Fund
PBO implementation of the recommendation from Australian National Audit Office Report No. 36 (2013-14)
the need for any legislative change.
Recommendations
1. The Committee recommends that the Government ensures that Commonwealth agencies meet the timelines in response to a request from the Parliamentary Budget Officer as specified in the Memorandum of Understanding.
2. The Committee recommends that the legal authority of the Parliamentary Budget Officer should be strengthened by specifying the information gathering powers of the Parliamentary Budget Officer in the Parliamentary Service Act 1999. The Government should bring forward amendments to the Parliamentary Service Act 1999 to express the intention of Parliament that the Parliamentary Budget Officer is entitled to free and timely access to all relevant information held by Executive agencies required to perform his or her functions, except where it is unlawful to do so.
3. The Committee recommends that the Government release details of the individual components of the Contingency Reserve to the Parliamentary Budget Officer, subject to any non-disclosure requirements considered necessary.
4. The Committee recommends the Government require that where a Commonwealth agency outsources the preparation of budget estimates and costing of policy proposals to a third party, the terms of the contract should enable the agency or the third party to provide all the relevant data, including the underlying calculations, models and methodology, to the Parliamentary Budget Officer under the Memorandum of Understanding without charge.
5. The Committee recommends that the Government review Commonwealth statutes and remove legislative barriers to the release of information to the Parliamentary Budget Officer, including those identified in this report.
6. The Committee recommends that where it is appropriate to retain an administrative discretion, the Government should consider making special provision for the release of data to the Parliamentary Budget Officer and, if necessary, any additional protection for the Commonwealth decision maker.
7. The Committee recommends that the Parliamentary Budget Officer should prepare and publish medium term projections on an annual basis. The Government should bring forward the necessary amendment to section 64E of the Parliamentary Service Act 1999 to include the annual preparation of medium term projections as a core function of the Parliamentary Budget Officer. The Parliamentary Budget Officer should be consulted, and if required, the Government should provide additional resources to enable the Parliamentary Budget Officer to carry out the new function.
8. The Committee recommends that the Government bring forward amendments to the Parliamentary Service Act 1999, to extend the analysis in the post-election report beyond the period of 4 years (current financial year and 3 year forward estimates) to include, where possible, 10 year medium term projections of the budget impact of the election commitments of the designated parliamentary parties. The Committee recommends that the Government consult the Parliamentary Budget Officer about the timing and detail of the information required on which to base the analysis.
Report of the Independent Review Panel, Parliamentary Budget Office Review 2016-17
Terms of Reference
The review panel will examine, report and make recommendations on the scope for the Parliamentary Budget Office (PBO) to build on the foundations it has established and continue to strengthen its ability to achieve its aims of:
providing a more level playing field for all parliamentarians in their access to publicly funded policy costings and budget analyses
improving the accuracy of costings of election commitments
enhancing the transparency and public understanding of budget information and fiscal policy settings.
The review panel will have regard to:
the PBO’s legislative mandate
the Memorandum of Understanding between the Parliamentary Budget Officer and the Heads of Commonwealth Bodies in relation to the provision of information and documents
the Australian Government protocols governing the engagement between Commonwealth Bodies and the Parliamentary Budget Officer
the impact of the PBO’s outputs on achieving the above objectives, including the manner and extent of their use in public policy debates
the views of the PBO’s primary stakeholders, including parliamentarians, parliamentary parties, parliamentary committees, other Commonwealth agencies and external think tanks
the experience of comparable international institutions
Recommendations
See Appendix D