Preliminary Pages
Foreword
On 16 May 2013, the House of Representatives Selection
Committee referred the Public Governance, Performance and Accountability Bill
2013 to the Joint Committee of Public Accounts and Audit (JCPAA). The Selection
Committee outlined the reasons for referral as ‘to ensure that combining the
two Acts into a single Act does not impose additional and unnecessary reporting
requirements on bodies subject to the Act and does not reduce transparency or
remove important oversight where it is appropriate’.
The JCPAA believes all these issues are satisfied. What the
Committee thinks are issues for consideration are timing; the development of
detailed rules; and ongoing consultation to assist agencies and other affected
bodies through this change process.
The Commonwealth Financial Accountability Review is an
important reform for Australia’s public sector, and looks to be broadly
supported by key stakeholders and political parties. However, what is
acknowledged is a level of nervousness in the transition from the general
concept of reform to this principles-based legislative framework, and then to
the next stage of detailed rules.
These stages of transition need to be handled carefully,
with ongoing time for listening to and talking with all 196 affected
Commonwealth entities a priority, along with ensuring that the Parliament is
fully informed.
It is a choice for a minister, a government and a parliament
whether to progress the legislation now. If so, commitments given by both the Finance
Minister and the Finance department regarding the development of the rules in
detail, along with ongoing consultation, will be critical to the success or
failure of this important reform.
Rob Oakeshott MP
Chair
Membership of the Committee
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Chair
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Mr Robert Oakeshott MP
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Deputy
Chair
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Ms Gai Brodtmann MP
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Members
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Hon Dick Adams MP
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Senator Mark Bishop
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Mr Jamie Briggs MP
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Senator Dean Smith
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Mr Darren Cheeseman MP
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Senator Anne Ruston
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Mr Harry Jenkins MP
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Senator Louise Pratt
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Ms Laura Smyth MP
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Senator the Hon Kim Carr
(from 14 May 2013)
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Hon Alex Somlyay MP
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Mr Josh Frydenberg MP
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Ms Deborah O’Neill MP
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Membership of the
Sectional Committee
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Chair
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Mr Robert Oakeshott MP
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Deputy
Chair
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Ms Gai Brodtmann MP
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Members
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Senator Mark Bishop
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Senator Dean Smith
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Senator Anne Rushton
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Committee Secretariat
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Secretary
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Mr David Brunoro
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Inquiry
Secretaries
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Ms Vikki Darrough
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Mr James Nelson
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Research
Officer
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Ms Elina Gilbourd
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Administrative
Officers
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Ms Jazmine Rakic
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Ms Karen Underwood
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Terms of reference
On 16 May 2013 the House of Representatives Selection
Committee referred the Public Governance, Performance and Accountability Bill
2013 for inquiry and report.
List of abbreviations
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ABC
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Australian Broadcasting Corporation
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ANAO
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Australian National Audit Office
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ASIC
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Australian Securities and
Investments Commission
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ATO
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Australian Taxation Office
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CAC Act
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Commonwealth Authorities and
Companies Act 1997
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CFAR
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Commonwealth Financial
Accountability Review
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Finance
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Department of Finance and
Deregulation
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FMA Act
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Financial Management and
Accountability Act 1997
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IBA
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Indigenous Business Australia
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JCPA
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Joint Committee of Public
Accounts
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JCPAA
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Joint Committee of Public
Accounts and Audit
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PGPA Bill
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Public Governance, Performance
and Accountability Bill 2013
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PS Act
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Public Service Act 1999
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SBS
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Special Broadcasting Service
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List of recommendations
Recommendation 1
That the objectives of the Bill be supported, but the timing
of its passage be a matter for the broader Parliament to determine.
Recommendation 2
That the issues highlighted in the referral from the Selection
Committee have been examined and do not, at this stage, look to be reasons for
rejection of the Bill.
Recommendation 3
That the Committee supports the introduction of additional
coherence to the system — including through improving the planning, performance
and accountability processes —and specifically supports the introduction of:
more
mature approaches to risk management;
the
concept of earned autonomy;
positive
obligations to cooperate and partner with others;
better
recognition of the resource management cycle of planning through to evaluation;
and
the
intent of improved performance reporting and transparency to the Parliament and
the public.
Recommendation 4
That, if the Bill is passed during this Parliament, that the
process outlined by the Finance Minister regarding public and parliamentary
consultation be closely followed.
Recommendation 5
That, if a decision is made to delay passage of the Bill,
priority should be given to its consideration within the first six months of
the next parliament; and that the opportunity should be taken to consult
stakeholders and progress work on the rules with a view to providing:
insight
into what they look like and contain; and
some
confidence to agencies and the Parliament as to their impact.
Recommendation 6
That consequential amendments will be required to the enabling
legislation of entities to ensure their independence is not compromised.
Recommendation 7
That the options developed by the Australian Government
Solicitor for amendment to the Explanatory Memorandum to clarify maintenance of
independence, as outlined in Supplementary Submission 9.2 from the Department
of Finance and Deregulation to the Joint Committee of Public Accounts and
Audit, be accepted and included in a revised Explanatory Memorandum.
Recommendation 8
That:
evaluation
requirements for the overall financial framework be explicitly included in the
Bill and Explanatory Memorandum; and
the
Parliament, through the Joint Committee of Public Accounts and Audit, conduct a
detailed inquiry into the financial framework following the completion of the
evaluation.
Recommendation 9
That a statement on greater transparency is included in the
Explanatory Memorandum, as per the Australian Information Commissioner’s
evidence to the Joint Committee of Public Accounts and Audit's inquiry into the
Bill.
Recommendation 10
That all relevant documents are prepared in plain English and
in language consistent with other relevant legislation, where practicable.
Recommendation 11
That other suggested amendments highlighted during the inquiry
be further considered and changes made as appropriate.